Intangible Assets

12 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill



(In millions)	CooperVision			CooperSurgical			Total
Balance at October 31, 2017	$	1,735.7		$	619.1		$	2,354.8
Net additions during the year ended October 31, 2018	36.8			34.4			71.2
Translation	(29.6		)	(4.3		)	(33.9		)
Balance at October 31, 2018	$	1,742.9		$	649.2		$	2,392.1
Net additions during the year ended October 31, 2019	14.1			22.0			36.1
Translation	8.4			(7.7		)	0.7
Balance at October 31, 2019	$	1,765.4		$	663.5		$	2,428.9

Of the October 31, 2019 goodwill balance, $146.8 million for CooperSurgical and $29.2 million for CooperVision is expected to be deductible for tax purposes. Of the October 31, 2018 goodwill balance, $247.1 million for CooperSurgical and $51.8 million for CooperVision was expected to be deductible for tax purposes.

Other Intangible Assets



	October 31, 2019				October 31, 2018
(In millions)	Gross Carrying Amount		Accumulated Amortization & Translation		Gross Carrying Amount ⁽¹⁾		Accumulated Amortization & Translation ⁽¹⁾		Weighted Average Amortization Period (In years)
Intangible assets with definite lives:
Trademarks	$	148.5	$	27.3	$	138.1	$	16.9	14
Composite intangible asset	1,061.9		141.6		1,061.9		70.8		15
Technology	399.9		221.2		387.2		190.7		11
Customer relationships	357.6		194.0		350.0		168.6		13
License and distribution rights and other ⁽²⁾	27.9		15.3		74.9		52.7		11
	1,995.8		$	599.4	2,012.1		$	499.7	14
Less: accumulated amortization and translation	599.4				499.7
Intangible assets with definitive lives, net	$	1,396.4			$	1,512.4

Intangible assets with indefinite lives, net ⁽³⁾	8.9				8.9

Total other intangible assets, net	$	1,405.3			$	1,521.3

⁽¹⁾In the second quarter of fiscal 2018, CooperSurgical recognized an impairment charge of $24.4 million upon the intangible assets on the exit of the carrier screening and non-invasive prenatal testing (NIPT) product lines acquired from Recombine Inc. in fiscal 2016. The intangible assets impaired consisted of Technology, Trademark and Customer relationships.

⁽²⁾In the second quarter of fiscal 2019, CooperSurgical sold an exclusive distribution right to distribute Filshie Clip System in the U.S. for $21.0 million and recognized a gain of $19.0 million. In the third quarter of fiscal 2019, CooperVision removed $37.3 million of fully amortized non-compete agreements.

⁽³⁾Intangible assets with indefinite lives include trademark and technology intangible assets.

Balances include foreign currency translation adjustments.

As of October 31, 2019, the estimation of amortization expenses for intangible assets with definite lives is as follows:



Fiscal years:	(In millions)
2020	$	135.8
2021	134.5
2022	132.7
2023	130.4
Thereafter	863.0
Total remaining amortization for intangible assets with definite lives	$	1,396.4

The Company assesses definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset may not be recoverable, the Company evaluates whether the definite-lived intangible asset is impaired by comparing its carrying value to its undiscounted future cash flows. The Company assesses indefinite-lived intangible assets annually in the third quarter of the fiscal year, or whenever events or circumstances indicate that the carrying amount of an indefinite-lived intangible asset (asset group) may not be recoverable. The Company evaluates whether the indefinite-lived intangible asset is impaired by comparing its carrying value to its fair value.

If the carrying value of a definite-lived or indefinite-lived intangible asset is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. The Company performs impairment tests using an income approach, more specifically a relief from royalty method. In the development of the forecasted cash flows, the Company applies significant management judgment to determine key assumptions, including revenue growth and operating margin growth, royalty rates and discount rates assumptions. Revenue and operating margin growth assumptions are based on historical trends and management’s expectations for future growth. Royalty rates used are consistent with those assumed for the original purchase accounting valuation. The discount rates were based on a weighted-average cost of capital utilizing industry market data of similar companies, in addition to estimated returns on the assets utilized in the operations of the applicable reporting unit, including net working capital, fixed assets and intangible assets. Other assumptions are consistent with those applied to goodwill impairment testing. The Company did not recognize any material definite-lived or indefinite-lived intangible asset impairment charges during fiscal 2019.