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 2019 and determined that our Europe and Asia reporting unit carrying value exceeds the fair value. The annual assessment of goodwill for Europe and Asia considered changes in macroeconomic conditions and industry trends in the fourth quarter, historical and future operating results, timing of restructuring plans and timing of new business and resulted in the calculated fair value being below the carrying value. As a result of the interim goodwill impairment test performed as of September 30, 2019, a goodwill impairment charge of $4,901 was recognized. Our goodwill impairment test as of September 30, 2018 concluded there was no impairment of goodwill.

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



Balance October 31, 2017		$	27,859
	Foreign currency translation	(483		)
Balance October 31, 2018		27,376
	Impairment	(4,901		)
	Foreign currency translation	(80		)
Balance October 31, 2019		$	22,395

Intangible Assets:

The changes in the carrying amount of finite-lived intangible assets for the years ended October 31, 2019 and 2018 are as follows:



		Customer Relationships			Developed Technology			Non-Compete			Trade Name			Trademark			Total
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
	Amortization expense	(1,331		)	(394		)	(15		)	(123		)	(17		)	(1,880		)
	Foreign currency translation	(3		)	(31		)	—			—			—			(34		)
Balance October 31, 2019		$	8,977		$	2,979		$	—		$	1,008		$	61		$	13,025

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, 2019
	Weighted Average Remaining Life (years)	Gross Carrying Value Net of Foreign Currency		Accumulated Amortization			Net
Customer relationships	6.70	$	17,561	$	(8,584	)	$	8,977
Developed technology	9.1	7,134		(4,155		)	2,979
Non-compete agreements	0	824		(824		)	—
Trade names	8.2	1,875		(867		)	1,008
Trademarks	3.8	166		(105		)	61
Total intangible assets		$	27,560	$	(14,535	)	$	13,025





	October 31, 2018
	Gross Carrying Value Net of Foreign Currency		Accumulated Amortization			Net
Customer relationships	$	17,564	$	(7,253	)	$	10,311
Developed technology	7,165		(3,761		)	3,404
Non-compete agreements	824		(809		)	15
Trade names	1,875		(744		)	1,131
Trademarks	166		(88		)	78
Total intangible assets	$	27,594	$	(12,655	)	$	14,939

Total amortization expense for the years ended October 31, 2019, 2018 and 2017 was $2,075, $2,372 and $2,259, 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 $195 for this asset is included in amortization of intangible assets for fiscal 2019 and the balance of $1,004 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:



2020	$	2,057
2021	2,058
2022	2,058
2023	2,054
2024	2,019
Thereafter	3,783
	$	14,029