THE DESCARTES SYSTEMS GROUP INC.

As discussed in Note 18, other charges include $0.4 million for write-off of redundant assets for the year ended
January 31, 2011. The redundant assets represent computer software from our Belgian operations, acquired as part
of the Porthus acquisition, which were made redundant as we continue to integrate Porthus into our operations.
Note 9 - Goodwill
January 31, January 31,
2011 2010
Balance, beginning of year 34,456 26,381
Business acquisition – Porthus 15,878 -
Business acquisition – Imanet 2,213 -
Business acquisition – Routing International 2,552 -
Business acquisition – Oceanwide - 4,403
Business acquisition – Scancode - 3,489
Business acquisition – Dexx - 42
Adjustments on account of foreign exchange and prior acquisitions 1,643 141
Balance, end of year 56,742 34,456
The business acquisitions of Porthus, Imanet, Routing International, Oceanwide, Scancode and Dexx are
described in Note 3 to these consolidated financial statements.
Note 10 - Intangible Assets
January 31, January 31,
2011 2010
Cost
Customer agreements and relationships 38,264 24,069
Non-compete covenants 1,349 1,029
Existing technology 23,583 10,120
Trade names 3,849 4,092
Accumulated amortization
67,045 39,310
Customer agreements and relationships 15,636 10,260
Non-compete covenants 951 808
Existing technology 7,415 4,870
Trade names 2,340 2,314
26,342 18,252
40,703 21,058
Intangible assets related to our acquisitions are recorded at their fair value at the acquisition date. During 2011,
additions to intangible assets primarily consisted of the acquisitions of Porthus, Imanet and Routing International,
described in Note 3 to these consolidated financial statements. The balance of the change in intangible assets is
due to foreign currency translation.
Intangible assets with a finite life are amortized into income over their useful lives. Amortization expense for
existing intangible assets is expected to be $40.7 million over the following periods: $10.8 million for 2012, $8.7
million for 2013, $8.1 million for 2014, $6.1 million for 2015, $3.4 million for 2016 and $3.6 million thereafter.
Expected future amortization expense is subject to fluctuations in foreign exchange rates.
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