XML 51 R15.htm IDEA: XBRL DOCUMENT

Goodwill

6 Months Ended

Jan. 31, 2015

Goodwill [Abstract]

7.

Goodwill

Goodwill of $1.1 million and $1.2 million at January 31, 2015 and July 31, 2014, respectively, is included in other assets on the accompanying condensed consolidated balance sheets. Goodwill is subject to an annual assessment for impairment by comparing the estimated fair values of reporting units to which Goodwill has been assigned, as calculated using a discounted cash flow method, to the recorded book value of the respective reporting units. The Company’s most recent annual impairment assessment for goodwill was completed during the fourth quarter of fiscal year 2014. The results of this assessment showed that the fair values of the reporting units to which goodwill is assigned was in excess of the book values of the respective reporting units, resulting in the identification of no goodwill impairment.

Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. The Company identified changes in circumstances during the quarter ended January 31, 2015 that necessitated an evaluation for impairment of a portion of its recorded goodwill.

The Company recorded $0.1 million of goodwill resulting from an acquisition of a majority-owned subsidiary during fiscal year 2011. The acquired company has experienced recurring operating losses over the course of several recent reporting quarters. Recent projections completed by management indicate that operating losses are expected to continue into the foreseeable future. As a result of management’s assessment, during the second quarter of fiscal year 2015, the Company determined that goodwill recorded as a result of this acquisition was impaired, and recorded a $0.1 million impairment loss in administrative and indirect operating expenses on the accompanying condensed consolidated statements of operations.

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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