Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Intangible Assets, Net

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 2018 and 2017 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, 2016		$	27,490
	Foreign currency translation	369
Balance October 31, 2017		27,859
	Foreign currency translation	(483		)
Balance October 31, 2018		$	27,376

Intangible Assets:

The changes in the carrying amount of finite-lived intangible assets for the years ended October 31, 2018 and 2017 are as follows:



		Customer Relationships			Developed Technology			Non-Compete			Trade Name			Trademark			Total
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
	Acquisitions	—			2,328			—			—			—			2,328
	Amortization expense	(1,332		)	(751		)	(16		)	(123		)	(17		)	(2,239		)
	Foreign currency translation	(5		)	(170		)	—			—			—			(175		)
Balance October 31, 2018		$	10,311		$	3,404		$	15		$	1,131		$	78		$	14,939

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, 2018
	Weighted Average Remaining Life (years)	Gross Carrying Value Net of Foreign Currency		Accumulated Amortization			Net
Customer relationships	7.9	$	17,564	$	(7,253	)	$	10,311
Developed technology	9.8	7,165		(3,761		)	3,404
Non-compete	0.9	824		(809		)	15
Trade name	9.2	1,875		(744		)	1,131
Trademark	4.8	166		(88		)	78
Total intangible assets		$	27,594	$	(12,655	)	$	14,939





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

Total amortization expense for the years ended October 31, 2018, 2017 and 2016 was $2,372, $2,259 and $2,258, respectively. A favorable lease asset of $1,458 was acquired as part of the Brabant acquisitions in fiscal 2018 with a 7 year useful life. Amortization expense of $133 for this asset is included in amortization for fiscal 2018 of intangible assets and the balance of $1,217 is included within other assets. Amortization expense related to intangible assets and the favorable lease asset for the following fiscal years ending is estimated to be as follows:



2019	$	2,079
2020	2,064
2021	2,064
2022	2,064
2023	2,060
Thereafter	5,825
	$	16,156

- 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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