THE DESCARTES SYSTEMS GROUP INC.

We write down intangible assets with a finite life to fair value when the related undiscounted cash flows are not
expected to allow for recovery of the carrying value. Fair value of intangibles is determined by discounting the
expected related future cash flows. No finite life intangible asset impairment has been identified or recorded in
our consolidated statements of operations for any of the fiscal years presented.
Note 11 - Accrued Liabilities
January 31, January 31,
2011 2010
Accrued compensation and benefits 5,949 2,805
Amounts payable to former Scancode shareholders 391 942
Accrued restructuring charges 420 122
Other accrued liabilities 4,582 3,640
11,342 7,509
Note 12 - Commitments, Contingencies and Guarantees
Commitments
To facilitate a better understanding of our commitments, the following information is provided in respect of our
operating and capital lease obligations:
Operating Capital
Years Ended January 31,
Leases Leases Total
2012 3,452 66 3,518
2013 2,638 66 2,704
2014 2,097 66 2,163
2015 1,738 33 1,771
2016 1,380 - 1,380
Thereafter 1,720 - 1,720
13,025 231 13,256
Lease Obligations
We are committed under non-cancelable operating leases for business premises, computer equipment and vehicles
with terms expiring at various dates through 2020. We are also committed under non-cancelable capital leases for
computer equipment expiring at various dates through 2015. The future minimum amounts payable under these
lease agreements are described in the chart above. Rental expense from operating leases was $3.1 million for the
year ended January 31, 2011 (January 31, 2010 - $1.5 million; January 31, 2009 - $1.6 million).
Other Obligations
Income Taxes
We have a commitment for income taxes incurred to various taxing authorities related to unrecognized tax
benefits in the amount of $4.2 million. At this time, we are unable to make reasonably reliable estimates of the
period of settlement with the respective taxing authority due to the possibility of the respective statutes of
limitations expiring without examination by the applicable taxing authority.
Deferred Share Unit and Restricted Share Unit Plans
As described in Note 15 to these consolidated financial statements, we maintain deferred share unit (“DSU”) and
restricted share unit (“RSU”) plans for our directors and employees. Any payments made pursuant to these plans
are settled in cash. As DSUs are fully vested upon issuance, the DSU liability recorded on our consolidated
balance sheets is calculated as the total number of DSUs outstanding at the consolidated balance sheet date
multiplied by the closing price of our common shares on the TSX at the consolidated balance sheet date. For
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