Goodwill and Intangible Assets

6 Months Ended

Jan. 31, 2014

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the six months ended January 31, 2014, were as follows:



	IDS			WPS		Total
Balance as of July 31, 2013	$	517,030		$	100,206	$	617,236
Purchase accounting adjustments	(2,168		)	—		$	(2,168	)
Translation adjustments	(714		)	1,050		$	336
Balance as of January 31, 2014	$	514,148		$	101,256	$	615,404

Goodwill decreased by $1,832 during the six months ended January 31, 2014. The decrease was due to purchase accounting adjustments of $2,168 for the deferred tax impact related to the release of escrow from the fiscal 2013 acquisition of Precision Dynamics Corporation ("PDC"), partially offset by the positive effects of foreign translation of $336.

Goodwill at January 31, 2014 included $18,225 and $172,280 of accumulated impairment losses within the IDS and WPS segments, respectively, for a total of $190,505.

Other intangible assets include patents, trademarks, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The Company also has unamortized indefinite-lived trademarks that are classified as other intangible assets. The net book value of these assets was as follows:



	January 31, 2014								July 31, 2013
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Amortized other intangible assets:
Patents	5	$	11,299	$	(9,883	)	$	1,416	5	$	11,053	$	(9,597	)	$	1,456
Trademarks and other	5	15,726		(9,761		)	5,965		5	15,289		(8,398		)	6,891
Customer relationships	8	261,245		(153,496		)	107,749		8	261,076		(144,620		)	116,456
Non-compete agreements and other	4	14,415		(13,761		)	654		4	14,942		(14,215		)	727
Unamortized other intangible assets:
Trademarks	N/A	31,075		—			31,075		N/A	31,321		—			31,321
Total		$	333,760	$	(186,901	)	$	146,859		$	333,681	$	(176,830	)	$	156,851

The gross carrying amount of goodwill and other intangible assets in the condensed consolidated balance sheets at January 31, 2014, differs from the value assigned to them in the original allocation of purchase price due to the effect of currency fluctuations between the date of acquisition and January 31, 2014.

Amortization expense on intangible assets was $5,047 and $5,015 for the three months ended January 31, 2014 and 2013, respectively, and $10,124 and $9,162 for the six months ended January 31, 2014 and 2013, respectively. The amortization over each of the next five fiscal years is projected to be $19,376, $18,555, $16,364, $13,253 and $11,969 for the fiscal years ending July 31, 2014, 2015, 2016, 2017 and 2018, respectively.

- 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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