Goodwill and Other Intangible Assets (Policies)

3 Months Ended

Jan. 29, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Other Intangible Assets

Finite-lived intangible assets are amortized to reflect the pattern of economic benefits consumed, which is principally the straight-line method. Intangible assets that are subject to amortization are evaluated for potential impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. No impairment was identified related to our finite-lived intangible assets as of either January 29, 2016 or January 30, 2015.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is assigned to specific reporting units, and is tested for impairment at least annually, during the fourth quarter of our fiscal year, or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. Due to the prolonged suppressed global commodity markets, its related effect on the global mining investment environment and the resulting impact on our stock price, our total shareholders’ equity exceeded our market capitalization during the quarter ended January 29, 2016, indicating the possibility of an impairment to goodwill. Based on this indicator of impairment, we performed an interim test for impairment of goodwill as of the last day of our fiscal first quarter. This test was focused on our Surface reporting unit, as all Underground goodwill was fully impaired in the fourth quarter of fiscal 2015. After completing our step one analysis, we determined that the estimated fair value of our Surface reporting unit exceeded its carrying value. Although we have concluded that there is no impairment on the goodwill of $354.6 million associated with our Surface segment as of the quarter ended January 29, 2016, we will continue to closely monitor this in the future considering the volatility and uncertainty in the markets. Should there be further market declines and/or a market capitalization that continues to be lower than our total shareholders' equity in future periods, there is increasing risk that Surface segment goodwill may be impaired.