Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2017

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 must be reviewed for impairment annually, or more frequently if events and circumstances arise that suggest the asset may be impaired. We conduct our review for goodwill impairment on September 30 of each year. Goodwill impairment testing is performed at the reporting unit level. The fair value is compared to the carrying value including goodwill. If the carrying value exceeds the fair value, then goodwill impairment exists. We performed a quantitative assessment at the reporting unit level in 2017 and 2016 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, 2015		$	27,992
	Foreign currency translation and other	(502		)
Balance October 31, 2016		27,490
	Foreign currency translation and other	369
Balance October 31, 2017		$	27,859

Intangibles:

The changes in the carrying amount of finite-lived intangible assets for the years ended October 31, 2017 and 2016 are as follows:



		Customer Relationships			Developed Technology			Non-Compete			Trade Name			Trademark			Total
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	(6		)	—			—			—			—			(6		)
Balance October 31, 2016		12,975			2,768			47			1,377			112			17,279
	Amortization expense	(1,332		)	(771		)	(16		)	(123		)	(17		)	(2,259		)
	Foreign currency translation	5			—			—			—			—			5
Balance October 31, 2017		$	11,648		$	1,997		$	31		$	1,254		$	95		$	15,025

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, 2017
	Weighted Average Useful Life (years)	Gross Carrying Value Net of Foreign Currency		Accumulated Amortization			Net
Customer relationships	13.2	$	17,569	$	(5,921	)	$	11,648
Developed technology	7.3	5,007		(3,010		)	1,997
Non-compete	2.3	824		(793		)	31
Trade name	14.8	1,875		(621		)	1,254
Trademark	10.0	166		(71		)	95
Total intangible assets		$	25,441	$	(10,416	)	$	15,025





	October 31, 2016
	Gross Carrying Value Net of Foreign Currency		Accumulated Amortization			Net
Customer relationships	$	17,564	$	(4,589	)	$	12,975
Developed technology	5,007		(2,239		)	2,768
Non-compete	824		(777		)	47
Trade name	1,875		(498		)	1,377
Trademark	166		(54		)	112
Total intangible assets	$	25,436	$	(8,157	)	$	17,279

Total amortization expense for the years ended October 31, 2017, 2016 and 2015 was $2,259, $2,258, and $2,295, respectively. Amortization expense related to intangible assets for the following fiscal years ending is estimated to be as follows:



2018	$	2,123
2019	1,716
2020	1,701
2021	1,701
2022	1,701
Thereafter	6,083
	$	15,025

- 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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