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Goodwill and Intangible Assets
 12 Months Ended
Oct. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and intangible assets
We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible net assets acquired in various business combinations. Goodwill is not amortized but is subject to annual impairment testing. Our annual impairment testing is performed as of August 1. Testing is done more frequently if an event occurs or circumstances change that would indicate the fair value of a reporting unit is less than the carrying amount of those assets. We assess the fair value of reporting units on a non-recurring basis using a quantitative analysis that uses a combination of the discounted cash flow method of the Income Approach and the guideline public company method of the Market Approach, and compare the result against the reporting unit’s carrying value of net assets. The implied fair value of our reporting units is determined based on significant unobservable inputs, as discussed below; accordingly, these inputs fall within Level 3 of the fair value hierarchy. The discounted cash flow method ("Income Approach") uses assumptions for revenue growth, operating margin and working capital turnover that are based on management’s strategic plans tempered by performance trends and reasonable expectations about those trends. Terminal value calculations employ a published formula known as the Gordon Growth Model Method that essentially captures the present value of perpetual cash flows beyond the last projected period assuming a constant Weighted Average Cost of Capital ("WACC") methodology and growth rate. For each reporting unit, a sensitivity analysis is performed to vary the discount and terminal growth rates in order to provide a range of reasonableness for detecting impairment. Discount rates are developed using a WACC methodology. The WACC represents the blended average required rate of return for equity and debt capital based on observed market return data and company specific risk factors.
In the application of the guideline public company method ("Market Approach"), fair value is determined using transactional evidence for similar publicly traded equity. The comparable company guideline group is determined based on relative similarities to each reporting unit since exact correlations are not available. An indication of fair value for each reporting unit is based on the placement of each reporting unit within a range of multiples determined for its comparable guideline company group. Valuation multiples are derived by dividing latest twelve-month performance for revenues and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") into total invested capital, which is the sum of traded equity plus interest bearing debt less cash. These multiples are applied against the revenue and EBITDA of each reporting unit. While the implied indications of fair value using the guideline public company method yield meaningful results, the discounted cash flow method of the income approach includes management’s thoughtful projections and insights as to what the reporting units will accomplish in the near future. Accordingly, the reasonable, implied fair value of each reporting unit is a blend based on the consideration of both the Income and Market approaches.
An impairment charge is recorded for the amount by which the carrying value of the reporting unit exceeds the fair value of the reporting unit, as calculated in the quantitative analysis described above. Based on our annual impairment tests in 2023, 2022 and 2021, the fair value of each reporting unit exceeded its carrying value, and accordingly, we did not record any goodwill impairment charges in 2023, 2022 or 2021.  
Our reporting units include components of the Industrial Precision Solutions, Medical and Fluid Solutions, and the Advanced Technology Solutions segments. Changes in the carrying amount of goodwill during 2023 by operating segment:
 Industrial Precision SolutionsMedical Fluid SystemsAdvanced Technology SystemsTotal
Balance at October 31, 2022$520,236 $1,172,069 $112,388 $1,804,693 
Acquisitions694,900 — 285,330 980,230 
Currency effect(6,140)1,789 3,629 (722)
Balance at October 31, 2023$1,208,996 $1,173,858 $401,347 $2,784,201 

The increase in goodwill for 2023 was due to the acquisition of CyberOptics and the ARAG Group. See Note 3 for additional details.
Changes in the carrying amount of goodwill during 2022 by operating segment: 
Industrial Precision SolutionsMedical Fluid SystemsAdvanced Technology SystemsTotal
Balance at October 31, 2021$415,020 $1,176,149 $121,979 $1,713,148 
Acquisitions131,129 — — 131,129 
Currency effect(25,913)(4,080)(9,591)(39,584)
Balance at October 31, 2022$520,236 $1,172,069 $112,388 $1,804,693 
The increase in goodwill for 2022 was due to the acquisition of NDC. See Note 3 for additional details.
Information regarding intangible assets subject to amortization: 
October 31, 2023
Carrying
Amount		Accumulated
Amortization		Net Book
Value
Customer relationships$794,706 $287,585 $507,121 
Patent/technology costs204,905 112,994 91,911 
Trade names125,692 52,488 73,204 
Noncompete agreements10,028 9,521 507 
Other182 181 1 
Total$1,135,513 $462,769 $672,744 
October 31, 2022
Carrying
Amount		Accumulated
Amortization		Net Book
Value
Customer relationships$480,058 $250,798 $229,260 
Patent/technology costs157,549 96,426 61,123 
Trade names82,759 44,707 38,052 
Noncompete agreements10,253 9,290 963 
Other446 442 4 
Total$731,065 $401,663 $329,402 
Amortization expense for 2023, 2022 and 2021 was $59,719, $50,825 and $50,551, respectively. See Note 3 for details regarding intangibles recorded due to the acquisition of CyberOptics and the ARAG Group.
Estimated amortization expense for each of the five succeeding years:
YearAmounts
2024$75,447 
202571,291 
202667,226 
202763,353 
202860,135