Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Intangible Assets

Goodwill:

In accordance with FASB ASC Topic 350, "Intangibles – Goodwill and Other," goodwill, and any other intangible asset having an indefinite useful life, must be reviewed for impairment annually, or more frequently if events and circumstances arise that suggest the asset may be impaired. The Company conducts its review for goodwill impairments on September 30 of each year. Goodwill impairment testing is performed at the reporting unit. The fair value is determined and compared to the carrying value. If the carrying value exceeds the fair value, then possible goodwill impairment may exist and further evaluation is required. At the time of goodwill 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 performed a quantitative assessment at the reporting unit level in 2016 and 2015 and concluded that there was no impairment of goodwill in either year.

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



Balance October 31, 2014		$	30,036
	Acquisitions, including adjustments on prior year acquisitions	(488		)
	Foreign currency translation and other	(1,556		)
Balance October 31, 2015		27,992
	Foreign currency translation and other	(502		)
Balance October 31, 2016		$	27,490

Intangibles:

The changes in the carrying amount of finite intangible assets for the years ended October 31, 2016 and 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
	Acquisitions and purchase accounting adjustments	(320		)	—			80			—			—			(240		)
	Amortization expense	(1,305		)	(771		)	(79		)	(124		)	(16		)	(2,295		)
	Foreign currency translation and other	80			—			—			—			—			80
Balance October 31, 2015		14,311			3,540			63			1,500			129			19,543
	Amortization expense	(1,330		)	(772		)	(16		)	(123		)	(17		)	(2,258		)
	Foreign currency translation and other	(6		)	—			—			—			—			(6		)
Balance October 31, 2016		$	12,975		$	2,768		$	47		$	1,377		$	112		$	17,279

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:




		October 31, 2016
	Weighted Average Useful Life (years)	Gross Carrying Value		Accumulated Amortization			Foreign Currency Adjustment			Net
Customer relationships	13.2	$	17,598	$	(4,589	)	$	(34	)	$	12,975
Developed technology	7.3	5,007		(2,239		)	—			2,768
Non-compete	2.3	824		(777		)	—			47
Trade name	14.8	1,875		(498		)	—			1,377
Trademark	10.0	166		(54		)	—			112
Total intangible assets		$	25,470	$	(8,157	)	$	(34	)	$	17,279





	October 31, 2015
	Gross Carrying Value		Accumulated Amortization			Foreign Currency Adjustment			Net
Customer relationships	$	17,598	$	(3,259	)	$	(28	)	$	14,311
Developed technology	5,007		(1,467		)	—			3,540
Non-compete	824		(761		)	—			63
Trade name	1,875		(375		)	—			1,500
Trademark	166		(37		)	—			129
Total intangible assets	$	25,470	$	(5,899	)	$	(28	)	$	19,543

Total amortization expense for the years ended October 31, 2016, 2015, and 2014 was $2,258, $2,295, and $2,164, respectively. Amortization expense related to intangible assets for the following fiscal years ending is estimated to be as follows:



2017	2,259
2018	2,123
2019	1,716
2020	1,701
2021	1,701
Thereafter	7,779
	$	17,279

- 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