Acquisitions (Tables)
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3 Months Ended |
Apr. 30, 2018 |
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| Business Combinations [Abstract] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The allocation of the purchase price to assets acquired and liabilities assumed is as follows: | | | | | (in millions) | | Cash | $ | 176 |
| Accounts receivable | 1,830 |
| Inventories | 239 |
| Prepaid expenses and other current assets | 100 |
| Property and equipment, net | 62 |
| Goodwill | 727 |
| Intangible assets | 919 |
| Other assets, net | 151 |
| Total assets | 4,204 |
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| Other current liabilities | 1,169 |
| Revolving credit loans and long-term debt | 134 |
| Other long-term liabilities | 99 |
| Total liabilities | 1,402 |
| | | Purchase price | $ | 2,802 |
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| Business Acquisition, Pro Forma Information |
The following table presents unaudited supplemental pro forma information as if the TS acquisition had occurred at the beginning of fiscal 2017. The pro forma results presented are based on combining the stand-alone operating results of the Company and TS for the periods prior to the acquisition date after giving effect to certain adjustments related to the transaction. The pro forma results exclude any benefits that may result from potential cost synergies of the combined company and certain non-recurring costs. As a result, the pro forma information below does not purport to present what actual results would have been had the acquisition actually been consummated on the date indicated and it is not necessarily indicative of the results of operations that may result in the future. | | | | |
| Three months ended April 30: | | 2017 | (in millions) | | Pro forma net sales | $ | 7,694 |
| Pro forma net income | $ | 36 |
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Adjustments reflected in the pro forma results include the following: | | • | Amortization of acquired intangible assets |
| | • | Interest costs associated with the transaction |
| | • | Removal of certain non-recurring transaction costs |
| | • | Tax effects of adjustments based on an estimated statutory tax rate |
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| Acquisition and integration expenses |
Acquisition, integration and restructuring expenses for the three months ended April 30, 2018 and 2017 are comprised of the following: | | | | | | | | | | Three months ended April 30, | | 2018 | | 2017 | (in thousands) | | | | Restructuring costs | $ | 16,480 |
| | $ | 10,345 |
| IT related costs | 7,330 |
| | 1,770 |
| Professional services | 3,567 |
| | 10,137 |
| Transaction related costs | 878 |
| | 15,179 |
| Other costs | 4,970 |
| | 4,635 |
| Total | $ | 33,225 |
| | $ | 42,066 |
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| Schedule of Restructuring Reserve by Type of Cost |
Restructuring activity during the three months ended April 30, 2018 is as follows: | | | | | | | | | | | | | | | | Three months ended April 30, 2018 | | | Severance | | Facility and Other Costs | | Total | (in thousands) | | | | | | | Balance at January 31, 2018 | | $ | 13,366 |
| | $ | 1,630 |
| | $ | 14,996 |
| Fiscal 2019 restructuring expenses | | 12,412 |
| | 4,068 |
| | 16,480 |
| Cash payments | | (5,747 | ) | | (1,620 | ) | | (7,367 | ) | Foreign currency translation | | (385 | ) | | (75 | ) | | (460 | ) | Balance at April 30, 2018 | | $ | 19,646 |
| | $ | 4,003 |
| | $ | 23,649 |
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