Intangible Assets and Goodwill

3 Months Ended

Oct. 31, 2011

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Note 8.                   Intangible Assets and Goodwill

Our intangible assets with definite lives consist of customer relationships, technology, brand names, non-compete agreements and patents. These intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from 2-20 years and have a weighted average amortization period of 11 years. Amortization expense related to definite life intangible assets was $2,289,000 and $1,319,000 for the three months ended October 31, 2011and 2010, respectively. Our intangible assets that have indefinite useful lives and therefore are not amortized consist of trademarks and trade names.

The Company’s intangible assets consist of the following:

	October 31, 2011
			Accumulated
	Gross		Amortization			Net
Intangible assets with finite lives:
Customer relationships	$	60,273,000	$	(16,541,000	)	$	43,732,000
Technology	20,902,000		(5,886,000		)	15,016,000
Brand names	11,946,000		(5,848,000		)	6,098,000
Non-compete agreements	3,181,000		(199,000		)	2,982,000
Patents and other registrations	1,312,000		(412,000		)	900,000
	97,614,000		(28,886,000		)	68,728,000
Trademarks and trade names	9,439,000		—			9,439,000
Total intangible assets	$	107,053,000	$	(28,886,000	)	$	78,167,000

	July 31, 2011
			Accumulated
	Gross		Amortization			Net
Intangible assets with finite lives:
Customer relationships	$	35,203,000	$	(15,468,000	)	$	19,735,000
Technology	9,849,000		(6,114,000		)	3,735,000
Brand names	9,745,000		(5,539,000		)	4,206,000
Non-compete agreements	2,981,000		(1,919,000		)	1,062,000
Patents and other registrations	1,301,000		(389,000		)	912,000
	59,079,000		(29,429,000		)	29,650,000
Trademarks and trade names	9,541,000		—			9,541,000
Total intangible assets	$	68,620,000	$	(29,429,000	)	$	39,191,000

Estimated amortization expense of our intangible assets for the remainder of fiscal 2012 and the next five years is as follows:

Nine month period ending July 31, 2012	$	6,837,000
Fiscal 2013	9,052,000
Fiscal 2014	8,755,000
Fiscal 2015	8,577,000
Fiscal 2016	5,409,000
Fiscal 2017	4,950,000

Goodwill changed during fiscal 2011 and the three months ended October 31, 2011 as follows:

			Water
			Purification			Healthcare							Total
	Endoscopy		and Filtration			Disposables		Dialysis		All Other			Goodwill
Balance, July 31, 2010	$	9,648,000	$	39,847,000		$	50,630,000	$	8,133,000	$	8,525,000		$	116,783,000
Acquisitions	—		11,809,000			5,234,000		—		—			17,043,000
Foreign currency translation	—		418,000			—		—		526,000			944,000
Balance, July 31, 2011	9,648,000		52,074,000			55,864,000		8,133,000		9,051,000			134,770,000
Acquisition	50,443,000		—			—		—		—			50,443,000
Foreign currency translation	—		(296,000		)	—		—		(372,000		)	(668,000		)
Balance, October 31, 2011	$	60,091,000	$	51,778,000		$	55,864,000	$	8,133,000	$	8,679,000		$	184,545,000

On July 31, 2011, we performed impairment studies of the Company’s goodwill and trademarks and trade names and concluded that such assets were not impaired.