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Intangible Assets
 12 Months Ended
Jan. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 4—Intangibl
e
Assets
Intangible assets are as follows:
 
 
 
January 31, 2023
 
 
January 31, 2022
 
(In thousands)
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
Miltope:
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
$
 3,100
 
 
$
 (2,777
) 
 
$
—  
 
 
$
 323
 
 
$
 3,100
 
 
$
 (2,515
) 
 
$
—  
 
 
$
 585
 
RITEC:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 2,830
 
 
 
 (1,623
) 
 
 
—  
 
 
 
 1,207
 
 
 
 2,830
 
 
 
 (1,557
) 
 
 
—  
 
 
 
 1,273
 
TrojanLabel:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Existing Technology
 
 
 2,327
 
 
 
 (2,087
) 
 
 
 94
 
 
 
 334
 
 
 
 2,327
 
 
 
 (1,767
) 
 
 
 127
 
 
 
 687
 
Distributor Relations
 
 
 937
 
 
 
 (588
) 
 
 
 27
 
 
 
 376
 
 
 
 937
 
 
 
 (498
) 
 
 
 46
 
 
 
 485
 
Honeywell:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 27,773
 
 
 
 (11,913
) 
 
 
—  
 
 
 
 15,860
 
 
 
 27,243
 
 
 
 (11,073
) 
 
 
—  
 
 
 
 16,170
 
Astro Machine:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 3,060
 
 
 
 (306
) 
 
 
—  
 
 
 
 2,754
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Trademarks
 
 
 420
 
 
 
 (42
) 
 
 
—  
 
 
 
 378
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Intangible Assets, net
 
$
 40,447
 
 
$
 (19,336
) 
 
$
 121
 
 
$
 21,232
 
 
$
 36,437
 
 
$
 (17,410
) 
 
$
 173
 
 
$
 19,200
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
In the second quarter of 2022, we extended the remaining useful life of the pre-existing customer contract relationship intangibles for Honeywell International, Inc. (“Honeywell”) from
6 years to 20 years and for the RITEC intangibles we changed the amortization method which was based on revenue with a remaining life of 4 years to the straight-line method with a
20-year
remaining life. We believe these changes, based on the life of the aircraft related to these intangibles, appropriately reflects a more systematic and rational approach to distributing the cost of these intangibles over their useful lives. The change in the amortization of the Honeywell customer contract relationship intangibles is being treated as a change in accounting estimate in 2022 and the change in the amortization of the RITEC customer contract relationship intangibles is being treated as a change in accounting estimate in 2022 that is effected by a change in accounting principle. The changes in amortization resulted in a $1.8 million decrease in amortization expense and a $1.8 million increase to net income for the period ended January 31, 2022.
There were no impairments to intangible assets during the periods ended January 31, 2023 and 2022. Amortization expense of $1.9 million, $2.2 million, and $4.1 million with regard to acquired intangibles has been included in the consolidated statements of income for the years ended January 31, 2023, 2022 and 2021, respectively.
Estimated amortization expense for the next
five
fiscal years is as follows:
 
(In thousands)   
2024
     
2025
     
2026
     
2027
     
2028
  
Estimated amortization expense
    $ 2,378      $ 1,719      $ 1,718      $ 1,7192      $ 1,281