Acquisitions and Intangibles

12 Months Ended

Jan. 31, 2012

Acquisitions and Intangibles [Abstract]

ACQUISITIONS AND INTANGIBLES

NOTE D — ACQUISITIONS AND INTANGIBLES

Intangible assets consist of:

		January 31,
	Estimated Life	2012		2011
		(In thousands)
Gross carrying amounts
Licenses	3.5 - 5.5 years	$	12,573	$	12,573
Trademarks	8 - 12 years		2,194		2,194
Customer relationships	5 - 15 years		5,900		5,900
Non-compete agreements	3.5 - 4.0 years		1,058		1,058
Subtotal			21,725		21,725
Accumulated amortization
Licenses			12,533		12,493
Trademarks			1,374		1,072
Customer relationships			2,359		1,859
Non-compete agreements			1,058		1,028
Subtotal			17,324		16,452
Net
Licenses			40		80
Trademarks			820		1,122
Customer relationships			3,541		4,041
Non-compete agreements			—		30
Subtotal			4,401		5,273
Unamortized intangible assets
Goodwill (Deductible for tax purposes)			26,100		26,100
Trademark			13,210		13,210
Subtotal			39,310		39,310
Total intangible assets, net		$	43,711	$	44,583

Intangible amortization expense amounted to approximately $900,000, $1.3 million and $1.6 million for the years ended January 31, 2012, 2011 and 2010, respectively.

The estimated intangible amortization expense for the next five years is as follows:

Year Ending January 31,	Amortization Expense
	(In thousands)
2013	$	759
2014		559
2015		559
2016		430
2017		386

Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. The Company reviews and tests its goodwill and intangible assets with indefinite lives for impairment at least annually, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may be impaired. We perform our test in the fourth fiscal quarter of each year using a combination of a discounted cash flow analysis and a market approach. The discounted cash flow approach requires that certain assumptions and estimates be made regarding industry economic factors and future profitability. The market approach estimates the fair value based on comparisons with the market values and market multiples of earnings and revenues of similar public companies.

Trademarks having finite lives are amortized over their estimated useful lives and measured for impairment when events or circumstances indicate that the carrying value may be impaired.

Goodwill has been allocated to the reporting segments based upon the relative fair values of the licenses (wholesale licensed product segment) and trademarks (wholesale non-licensed product segment) acquired. The carrying amount of goodwill in the wholesale licensed product segment was $26.1 million for the years ended January 31, 2012 and 2011.