Goodwill and Intangible Assets

9 Months Ended

Apr. 30, 2017

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the nine months ended April 30, 2017, were as follows:



	IDS			WPS			Total
Balance as of July 31, 2016	$	384,529		$	45,342		$	429,871
Translation adjustments	(4,298		)	362			(3,936		)
Realignment of businesses between segments	2,490			(2,490		)	—
Balance as of April 30, 2017	$	382,721		$	43,214		$	425,935

Goodwill at April 30, 2017 and July 31, 2016, included $118,637 and $209,392 of accumulated impairment losses within the Identification Solutions ("IDS") and Workplace Safety ("WPS") segments, respectively, for a total of $328,029. There were no impairment charges recorded during the nine months ended April 30, 2017.

As further discussed in Note E - Segment Information, the Company realigned certain businesses between the WPS and IDS reportable segments effective August 1, 2016. In accordance with ASC 350, "Intangibles - Goodwill and Other," the Company completed a relative fair value calculation of the businesses that were realigned and moved the corresponding goodwill balance of $2,490 between the two reportable segments.

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:



	April 30, 2017								July 31, 2016
	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	$	12,337	$	(11,410	)	$	927	5	$	12,252	$	(11,063	)	$	1,189
Trademarks and other	5	14,328		(13,864		)	464		5	14,359		(13,709		)	650
Customer relationships	7	134,618		(104,496		)	30,122		7	135,795		(100,830		)	34,965
Non-compete agreements and other	4	9,091		(9,091		)	—		4	9,153		(9,142		)	11
Unamortized other intangible assets:
Trademarks	N/A	22,594		—			22,594		N/A	22,991		—			22,991
Total		$	192,968	$	(138,861	)	$	54,107		$	194,550	$	(134,744	)	$	59,806

The decrease in the gross carrying amount of other intangible assets as of April 30, 2017, compared to July 31, 2016, was primarily due to the effect of currency fluctuations during the nine-month period.

Amortization expense on intangible assets was $1,766 and $1,838 for the three months ended April 30, 2017 and 2016, respectively, and $5,349 and $7,066 for the nine months ended April 30, 2017 and 2016, respectively. The amortization over each of the next five fiscal years is projected to be $6,869, $6,158, $5,936, $5,431 and $5,385 for the fiscal years ending July 31, 2017, 2018, 2019, 2020 and 2021, 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.

+ References + Details