THE DESCARTES SYSTEMS GROUP INC.

More documents

Recommendations

Info

Descartes and our subsidiaries file their tax returns as prescribed by the tax laws of the jurisdictions within which they operate. We are no longer subject to income tax examinations by tax authorities in our major tax jurisdictions as follows: Years No Longer Subject to Audit Tax Jurisdiction United States Federal 2007 and prior Canada 2003 and prior United Kingdom 2007 and prior Sweden 2004 and prior Note 18 - Other Charges Other charges are primarily comprised of charges related to certain restructuring initiatives which have been undertaken from time to time under various restructuring plans. Other charges also include acquisition-related costs with respect to completed and prospective acquisitions. Acquisition-related costs primarily include advisory services, brokerage services and administrative costs. In 2011, other charges also included $0.4 million related to the write-off of certain computer software assets, acquired as part of the Porthus acquisition. These assets became redundant during the year ended January 31, 2011 as we continue to integrate Porthus into our operations. Other charges included in our consolidated statements of operations are as follows: January 31, January 31, January 31, 2011 2010 2009 Restructuring related to fiscal 2011 acquisitions 1,011 - - Fiscal 2011 restructuring plan 866 - - Fiscal 2010 restructuring plan 156 754 - Other restructuring plans - - 280 Acquisition-related costs 1,545 861 258 Write-off of redundant assets 417 - - 3,995 1,615 538 Restructuring Related to Fiscal 2011 Acquisitions As described in Note 3 to these consolidated financial statements, we completed three acquisitions during the year ended January 31, 2011. As these acquisitions were completed, management approved and began to implement restructuring plans to integrate and streamline operations. The total costs to be incurred in conjunction with these restructuring plans are expected to be approximately $1.0 million to $1.5 million, of which $1.0 million has been recorded within other charges during 2011. These charges are comprised of workforce reduction charges and network consolidation costs. These plans are expected to be completed in 2012 with the expected remaining costs to be primarily related to workforce reductions. 74
The following table shows the changes in the restructuring provision for restructuring related to fiscal 2011 acquisitions. Workforce Network Consolidation Reduction Costs Total Balance at January 31, 2010 - - - Accruals and adjustments 823 188 1,011 Cash draw downs (765) (184) (949) Balance at January 31, 2011 58 4 62 Fiscal 2011 Restructuring Plan In the first quarter of 2011, management approved and began to implement the fiscal 2011 restructuring plan to reduce operating expenses and increase operating margins. The total cost to be incurred in conjunction with this restructuring plan is expected to be approximately $0.9 million to $1.1 million, of which $0.9 million has been recorded within other charges during 2011. These charges are comprised of workforce reduction charges, office closure costs and network consolidation costs. This plan is expected to be completed by April 30, 2011 with the expected remaining costs to be primarily related to workforce reductions. The following table shows the changes in the restructuring provision for the fiscal 2011 restructuring plan. Workforce Office Closure Network Consolidation Reduction Costs Costs Total Balance at January 31, 2010 - - - - Accruals and adjustments 690 142 34 866 Cash draw downs (380) (123) (34) (537) Balance at January 31, 2011 310 19 - 329 Fiscal 2010 Restructuring Plan In the first quarter of 2010, management approved and began to implement the fiscal 2010 restructuring plan to reduce operating expenses and increase operating margins. The total cost to be incurred in conjunction with this restructuring plan is expected to be approximately $0.9 million, of which $0.9 million total has been recorded within other charges to date, with $0.2 million of this total amount recorded within other charges in fiscal 2011. These charges are comprised of workforce reduction charges, office closure costs and network consolidation costs. This plan is complete with only the remaining provision below as payable. The following table shows the changes in the restructuring provision for the fiscal 2010 restructuring plan. Workforce Office Closure Network Consolidation Reduction Costs Costs Total Balance at January 31, 2009 - - - - Accruals and adjustments 727 27 - 754 Cash draw downs (632) - - (632) Balance at January 31, 2010 95 27 - 122 Accruals and adjustments 100 - 56 156 Cash draw downs Noncash draw downs and foreign (168) (27) (56) (251) exchange 2 - - 2 Balance at January 31, 2011 29 - - 29 75
Page 1 and 2:
THE DESCARTES SYSTEMS GROUP INC. 20
Page 3 and 4:
LETTER FROM THE CEO Dear Shareholde
Page 5 and 6:
securities laws (“forward-looking
Page 7 and 8:
who can help them manage the end-to
Page 9 and 10:
CONSOLIDATED OPERATIONS The followi
Page 11 and 12:
We operate in one business segment
Page 13 and 14:
Gross margin percentage for service
Page 15 and 16:
Other charges consist primarily of
Page 17 and 18:
April 30, July 31, October 31, Janu
Page 19 and 20:
shares from certain executive offic
Page 21 and 22:
COMMITMENTS, CONTINGENCIES AND GUAR
Page 23 and 24: On December 21, 2010, we announced
Page 25 and 26: for tax benefits that we currently
Page 27 and 28: Integrated Framework, issued by the
Page 29 and 30: We estimate that amortization expen
Page 31 and 32: credit in the future, which could r
Page 33 and 34: hedging strategies to mitigate our
Page 35 and 36: transportation. The added cost of a
Page 37 and 38: seriously harm our business because
Page 39 and 40: assert these patents against us. Su
Page 41 and 42: MANAGEMENT’S REPORT ON FINANCIAL
Page 43 and 44: Report of Independent Registered Ch
Page 45 and 46: THE DESCARTES SYSTEMS GROUP INC. CO
Page 47 and 48: THE DESCARTES SYSTEMS GROUP INC. CO
Page 49 and 50: We also determined to perform a qua
Page 51 and 52: Impairment of long-lived assets We
Page 53 and 54: including our estimated taxable inc
Page 55 and 56: income tax liability decreased by $
Page 57 and 58: The goodwill on the Porthus, Imanet
Page 59 and 60: The goodwill on the Oceanwide and S
Page 61 and 62: Note 5 - Trade Receivables January
Page 63 and 64: We write down intangible assets wit
Page 65 and 66: time limitation. The amount also de
Page 67 and 68: Total estimated stock-based compens
Page 69 and 70: Deferred Share Unit Plan Our board
Page 71 and 72: Income tax expense (recovery) is in
Page 73: The provision (recovery) for income
Page 77 and 78: CORPORATE INFORMATION Stock Exchang
show all

THE DESCARTES SYSTEMS GROUP INC.

Create successful ePaper yourself

Delete template?

Save as template?