Intangible assets and goodwill

3 Months Ended

Oct. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

5. Intangible assets and goodwill

Intangible assets

Intangible assets include the value assigned to intellectual property and other technology, patents, customer contracts and relationships, and trade names. The estimated useful lives for all of these intangible assets, excluding a trade name determined to have an indefinite life, range between 1 to 14 years. Indefinite-lived intangible assets consist of trade names acquired in business combinations. The carrying values of our indefinite-lived intangible assets were $7.6 million at both the three months ended October 31, 2017 and July 31, 2017.

Finite-lived intangible assets are summarized as follows:

		As of October 31, 2017						As of July 31, 2017
(in millions)	Weighted Average Amortization Period	Cost		Accumulated Amortization/ Write-Offs		Net		Cost		Accumulated Amortization		Net
Developed technologies	10 years	$	17.7	$	14.8	$	2.9	$	17.7	$	14.4	$	3.3
Customer relationships	13 years		43.7		29.6		14.1		43.7		28.7		15.0
Trade names	3 years		0.9		0.9		-		0.9		0.9		-
Total finite-lived intangible assets		$	62.3	$	45.3	$	17.0	$	62.3	$	44.0	$	18.3

Amortization expense related to acquired intangible assets was $1.3 million and $2.0 million for each of the three months ended October 31, 2017 and 2016, respectively.

Goodwill

We had goodwill balances of $2.3 million at both October 31, 2017 and July 31, 2017. We review periodically or more frequently if indicators are present or changes in circumstances suggest that it is more likely than not that impairment may exist and we perform a formal goodwill impairment test in the second quarter of each fiscal year.

The goodwill balance by reportable segments and reporting unit at both the three months ended October 31, 2017 and July 31, 2017 are as follows:

	Medical Imaging		Ultrasound				Security and Detection
(in millions)	(Medical Imaging Reporting Unit)		(Ultrasound Reporting Unit)		(Oncura Reporting Unit)		(Security and Detection Reporting Unit)		Total Goodwill
Balance as of July 31, 2017	$	1.8	$	-	$	-	$	0.5	$	2.3
Balance as of October 31, 2017	$	1.8	$	-	$	-	$	0.5	$	2.3

The following is a rollforward of accumulated goodwill impairment losses by reportable segment and reporting unit:

	Medical Imaging		Ultrasound						Security and Detection
(in millions)	(Medical Imaging Reporting Unit)		(Ultrasound Reporting Unit)			(Oncura Reporting Unit)			(Security and Detection Reporting Unit)		Total
Accumulated impairment losses as of July 31, 2017	$	-	$	(55.2	)	$	(16.4	)	$	-	$	(71.6	)
Accumulated impairment losses as of October 31, 2017	$	-	$	(55.2	)	$	(16.4	)	$	-	$	(71.6	)

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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