v3.25.2
Intangible Assets, Goodwill and Other
 6 Months Ended
Jul. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS INTANGIBLE ASSETS AND GOODWILL
Finite-Lived Intangible Assets
The Company's finite-lived intangible assets consist of customer relationships and covenants not to compete. The following is a summary of intangible assets with finite lives as of July 31, 2025 and January 31, 2025:
July 31, 2025January 31, 2025
CostAccumulated AmortizationNetCostAccumulated AmortizationNet
(in thousands)(in thousands)
Covenants not to compete$975 $(592)$383 $1,125 $(642)$483 
Customer relationships11,528 (3,027)8,501 11,137 (2,278)8,859 
$12,503 $(3,619)$8,884 $12,262 $(2,920)$9,342 
Total expense related to the amortization of intangible assets, which is recorded in Operating Expenses in the Condensed Consolidated Statements of Operations, was $0.5 million for three months ended July 31, 2025 and 2024. Total expense related to the amortization of intangible assets, which is recorded in Operating Expenses in the Condensed Consolidated Statements of Operations, was $0.9 million and $1.0 million for the six months ended July 31, 2025 and 2024, respectively.
The Company performed an impairment test in the six months ended July 31, 2025 with respect to its German subsidiary's intangibles assets and recorded an impairment charge of $0.1 million within the Europe segment, which is included in Impairment of Intangible and Long-Lived Assets in the Condensed Consolidated Statements of Operations.
Future amortization expense, as of July 31, 2025, is expected to be as follows:
Fiscal Year Ending January 31,
Amount
(in thousands)
2026 (remainder)$891 
20271,805 
20281,758 
20291,638 
20301,599 
Thereafter1,193 
$8,884 
Indefinite-Lived Intangible Assets
The Company's indefinite-lived intangible assets consist of distribution rights assets. The following is a summary of the changes in indefinite-lived intangible assets, by segment, for the six months ended July 31, 2025:
AgricultureConstructionAustraliaTotal
(in thousands)
January 31, 2025$18,154 $72 $20,738 $38,964 
Foreign currency translation— — 1,135 1,135 
July 31, 2025$18,154 $72 $21,873 $40,099 
Goodwill
The following presents changes in the carrying amount of goodwill, by segment, for the six months ended July 31, 2025:
AgricultureAustraliaTotal
(in thousands)
January 31, 2025$37,820 $23,426 $61,246 
Arising from business combinations1,400 — 1,400 
Foreign currency translation— 1,290 1,290 
July 31, 2025$39,220 $24,716 $63,936 
The Company performed an interim impairment test in the six months ended July 31, 2025 for the German reporting unit. Under the impairment test, the fair value of the reporting unit is estimated using an income approach in which a discounted cash flow analysis is utilized, which includes a five-year forecast of future operating performance for the reporting unit and a terminal value that estimates sustained long-term growth. The discount rate applied to the estimated future cash flows reflects an estimate of the weighted-average cost of capital of comparable companies.
The quantitative goodwill impairment analysis for the German reporting unit indicated that the estimated fair value of the reporting unit was less than the carrying value. The implied fair value of the goodwill associated with the reporting unit approximated zero, thus requiring a full impairment charge of the goodwill carrying value of the reporting unit. As such, a goodwill impairment charge of $0.5 million was recognized within the Europe segment, which is included in Impairment of Goodwill in the Condensed Consolidated Statements of Operations.