Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Intangible Assets

Goodwill:

During 2014, the Company recognized $24,887 of goodwill related to the acquisitions of Radar Industries Inc., and Finnveden Metal Structures and includes adjustments of $3,330 related to Contech Castings LLC acquisition.

During 2013, the Company recognized $6,768 of goodwill related to the acquisitions of Albany-Chicago Company LLC and Contech Castings LLC.

In accordance with the Goodwill Topic of the ASC, goodwill is tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred. September 30 has been established for the annual impairment review. At the time of impairment testing, values are estimated for goodwill, incorporating discount rates commensurate with the risks involved. An optional qualitative assessment may alleviate the need to perform the quantitative goodwill impairment test when impairment is unlikely. The Company used the qualitative assessment in 2013.

The annual impairment review performed as of September 30, 2014 did not result in any goodwill impairment.

The changes in the carrying amount of goodwill are as follows:



Balance October 31, 2012		$	—
	Acquisitions	6,768
	Divestitures	—
	Foreign currency translation and other	—
Balance October 31, 2013		6,768
	Acquisitions, including adjustments on prior year acquisitions	24,887
	Divestitures	—
	Foreign currency translation and other	(768		)
Balance October 31, 2014		$	30,887

Intangibles:

Intangible assets acquired with the acquisitions described in Note 2 consist of the following:



		Customer Relationships			Developed Technology			Non-Compete			Trade Name			Trademark			Total
Balance October 31, 2012		$	—		$	—		$	—		$	—		$	—		$	—
	Acquisitions	13,462			2,707			744			1,875			166			18,954
	Amortization expense	(771		)	(136		)	(310		)	(128		)	(4		)	(1,349		)
	Foreign currency translation and other	—			—			—			—			—			—
Balance October 31, 2013		12,691			2,571			434			1,747			162			17,605
	Acquisitions	4,456			2,300			—			—			—			6,756
	Amortization expense	(1,183		)	(560		)	(372		)	(123		)	(17		)	(2,255		)
	Foreign currency translation and other	(108		)	—			—			—			—			(108		)
Balance October 31, 2014		$	15,856		$	4,311		$	62		$	1,624		$	145		$	21,998

The following table reflects intangible assets and related accumulated amortization:




	October 31, 2014
	Useful Life	Cost		Accumulated Amortization			Foreign Currency Adjustment			Net
Trade Name (Albany-Chicago)	15 years	$	1,850	$	(226	)	$	—		$	1,624
Non-compete (Albany-Chicago)	2 years	744		(682		)	—			62
Customer Relationships (Albany-Chicago)	13 years	13,462		(1,898		)	—			11,564
Trade Name (Contech)	0.25 years	25		(25		)	—			—
Trademark (Contech)	10 years	166		(21		)	—			145
Developed Technology (Contech)	5 years	2,707		(677		)	—			2,030
Customer Relationships (FMS)	10 years	1,136		(36		)	(108		)	992
Customer Relationships (Radar)	14 years	3,320		(20		)	—			3,300
EPTC Technology (Radar)	10 years	2,300		(19		)	—			2,281
Total intangible assets		$	25,710	$	(3,604	)	(108		)	$	21,998




	October 31, 2013
	Useful Life	Cost		Accumulated Amortization			Net
Trade Name (Albany-Chicago)	15 years	$	1,850	$	(103	)	$	1,747
Non-compete (Albany-Chicago)	2 years	744		(310		)	434
Customer Relationships (Albany-Chicago)	13 years	13,462		(771		)	12,691
Trade Name (Contech)	0.25 years	25		(25		)	—
Trademark (Contech)	10 years	166		(4		)	162
Developed Technology (Contech)	5 years	2,707		(136		)	2,571
Total intangible assets		18,954		(1,349		)	17,605

Total amortization expense for the years ending October 31, 2014 and 2013 was $2,255 and $1,349, respectively. Amortization expense related to intangible assets for the following fiscal years ending is estimated to be as follows:



2015	$	2,349
2016	2,287
2017	2,287
2018	2,151
2019	1,745
Thereafter	11,179
	$	21,998

- 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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