Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill:

The changes in the carrying amount of goodwill for the nine months ended July 31, 2015 are as follows:



Balance October 31, 2014		$	30,887
	Acquisitions and purchase accounting adjustments	(635		)
	Divestitures	—
	Foreign currency translation and other	(1,426		)
Balance July 31, 2015		$	28,826

During the third quarter, a test for goodwill impairment was conducted related to the FMS acquisition. The Company concluded that there was no impairment of goodwill.

Intangible Assets

The changes in the carrying amount of finite intangible assets for the nine months ended July 31, 2015 are as follows :



		Customer Relationships			Developed Technology			Non-Compete			Trade Name			Trademark			Total
Balance October 31, 2014		$	15,856		$	4,311		$	62		$	1,624		$	145		$	21,998
	Acquisition and purchase accounting adjustments	(530		)	—			80			—			—			(450		)
	Amortization expense	(1,036		)	(579		)	(75		)	(93		)	(12		)	(1,795		)
	Foreign currency translation and other	44			—			—			—			—			44
Balance July 31, 2015		$	14,334		$	3,732		$	67		$	1,531		$	133		$	19,797

Intangible assets are amortized on the straight-line method over their legal or estimated useful lives. The following summarizes the gross carrying value and accumulated amortization for each major class of intangible assets:



	Gross Carrying Value		Accumulated Amortization			Foreign Currency Adjustment			Net
Customer relationships	$	17,347	$	(2,950	)	$	(63	)	$	14,334
Developed technology	5,007		(1,275		)	—			3,732
Non-compete	824		(757		)	—			67
Trade Name	1,875		(344		)	—			1,531
Trademark	166		(33		)	—			133
	$	25,219	$	(5,359	)	$	(63	)	$	19,797

Total amortization expense was $486 and $1,795 for the three and nine months ended July 31, 2015, respectively and $545 and $1,635 for the three and nine months ended July 31, 2014, respectively. Amortization expense related to intangible assets for the fiscal years ending is estimated to be as follows:



Twelve Months Ending July 31,
2016	$	2,242
2017	2,242
2018	2,141
2019	1,799
2020	1,688
Thereafter	9,685
	$	19,797

- 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