Goodwill and Other Intangible Assets

9 Months Ended

Jul. 31, 2012

Goodwill and Other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the changes in the carrying amount of goodwill by segment for the nine month period ended July 31, 2012 (Dollars in millions):

	Rigid Industrial Packaging & Services			Flexible Products & Services			Paper Packaging		Land Management		Total
Balance at October 31, 2011	$	867.1		$	78.1		$	59.7	$	0.2	$	1,005.1
Goodwill acquired		—			—			—		—		—
Goodwill adjustments		11.3			0.1			—		—		11.4
Currency translation		(53.8	)		(10.3	)		—		—		(64.1	)
Balance at July 31, 2012	$	824.6		$	67.9		$	59.7	$	0.2	$	952.4

The goodwill adjustments increased goodwill by a net amount of $11.4 million related to the finalization of purchase price allocations of certain prior year acquisitions. Business combinations that occurred at or near year end were recorded with provisional estimates for fair value based on management’s best estimate and were updated based on updated estimates.

The following table summarizes the carrying amount of net intangible assets by class as of July 31, 2012 and October 31, 2011 (Dollars in millions):

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
October 31, 2011:
Trademark and patents	$	47.4	$	17.7	$	29.7
Non-compete agreements		22.8		9.3		13.5
Customer relationships		183.0		22.8		160.2
Other		33.1		7.7		25.4
Total	$	286.3	$	57.5	$	228.8
July 31, 2012:
Trademark and patents	$	37.2	$	9.2	$	28.0
Non-compete agreements		14.4		5.6		8.8
Customer relationships		193.9		49.3		144.6
Other		19.8		2.6		17.2
Total	$	265.3	$	66.7	$	198.6

Gross intangible assets decreased by $21.0 million for the nine month period ended July 31, 2012. The decrease in gross intangible assets was attributable to $19.8 million of currency fluctuations and $1.2 million of adjustments to the preliminary purchase price allocations related to the 2011 acquisitions in the Rigid Industrial Packaging & Services segment. The decrease in accumulated amortization was attributable to $3.1 million of currency fluctuations. Amortization expense for the three months ended July 31, 2012 and 2011 was $5.0 million and $4.3 million, respectively. Amortization expense for the nine months ended July 31, 2012 and 2011 was $15.1 million and $12.7 million, respectively. Amortization expense for the next five years is expected to be $20.8 million in 2012, $20.0 million in 2013, $18.6 million in 2014, $17.5 million in 2015 and $17.0 million in 2016.

All intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that range from three to 15 years for trade names, two to ten years for non-competition covenants, one to 23 years for customer relationships and four to 20 years for other intangibles, except for $15.8 million related to the Tri-Sure trademark and the trade names related to Blagden Express, Closed-loop and Box Board, all of which have indefinite lives.

The Company reviews goodwill and indefinite-lived intangible assets for impairment by reporting unit as required by ASC 350, “Intangibles—Goodwill and Other”, on an annual basis and whenever events and circumstances indicate impairment may have occurred. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management.

The Company’s business segments have been identified as reporting units and the Company concluded that no impairment or impairment indicators exist as of July 31, 2012.