9. GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Major components of other intangible assets consisted of:

	October 31, 2016						October 31, 2015
	Gross Carrying Amount		Accumulated Amortization		Wgt. Avg. Amort. Years		Gross Carrying Amount		Accumulated Amortization		Wgt. Avg. Amort. Years
Amortized Intangible Assets:
Covenants Not to Compete	$	2,536,488	$	2,444,293		1.80	$	2,536,488	$	2,382,570		2.54
Customer Lists		10,313,819		9,217,143		2.02		10,313,819		8,639,685		2.95
Other Identifiable Intangibles		608,393		303,570		23.04		608,393		271,211		24.00
Total	$	13,458,700	$	11,965,006			$	13,458,700	$	11,293,466

Amortization expense for the fiscal years ending October 31, 2016 and 2015 was $671,540 and $740,456, respectively.  There were no changes in the carrying amount of goodwill for the fiscal years ending October 31, 2016 and 2015.

Estimated amortization expense for the next five years is as follows:

Fiscal Year Ending October 31,
2017	$	660,000
2018		518,000
2019		75,000
2020		18,000
2021		12,000

An assessment of the carrying value of goodwill was conducted as of October 31, 2016 and 2015.  In both years it was determined that goodwill was not impaired.  There were no changes in the carrying amount of goodwill for the fiscal years ended October 31, 2016 and 2015.

The Company elected to perform a qualitative (Step 0) assessment of goodwill as of October 31, 2016.  Qualitative factors that we considered in the Step 0 assessment included, but were not limited to, macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other relevant entity-specific events and our share price.  At the conclusion of the Step 0 assessment, the Company determined that is not more likely than not that the fair value of our reporting unit was less than the carrying value.

The Company elected to forgo the qualitative assessment of its goodwill as of October 31, 2015 and transitioned directly to Step 1.  The assessment of the carrying value of goodwill is a two step process. In step one, the fair value of the Company is determined, using a weighted average of three different approaches – quoted stock price (a market approach), value comparisons to publicly traded companies believed to have comparable reporting units (a market approach), and discounted net cash flow (an income approach).  This approach provided a reasonable estimation of the value of the Company and took into consideration the Company's thinly traded stock and concentrated holdings, market comparable valuations, and expected results of operations. The Company compared the resulting estimated fair value to its equity value as of October 31, 2015 and determined there was no impairment of goodwill. Step 2, which involves allocation of the fair value of the Company's assets and liabilities, was not necessary because impairment was not indicated in Step 1.

The Company is a single reporting unit as it does not have separate management of product lines and shares its sales, purchasing and distribution resources among the lines.