GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Apr. 30, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the changes in the carrying amount of goodwill by segment for the six month period ended April 30, 2014 (Dollars in millions):


	Rigid Industrial Packaging & Services			Flexible Products & Services		Paper Packaging		Land Management		Total
Balance at October 31, 2013	$	867.3		$	76.3	$	59.9	$	—	$	1,003.5
Goodwill acquired		34.4			—		—		—		34.4
Goodwill adjustments		(7.8	)		—		—		—		(7.8	)
Currency translation		(2.3	)		0.2		—		—		(2.1	)

Balance at April 30, 2014	$	891.6		$	76.5	$	59.9	$	—	$	1,028.0

Goodwill increased by $24.5 million for the six month period ended April 30, 2014. The increase in goodwill was primarily related to an acquisition in the Rigid Industrial Packaging & Services segment partially offset by foreign currency fluctuations and a reclassification of an amount improperly classified as goodwill in a prior period.

The Company reviews goodwill by reporting unit and indefinite-lived intangible assets for impairment as required by ASC 350, “Intangibles—Goodwill and Other”, either annually in the fourth quarter or 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.

During the second quarter of 2014, a prolonged, illegal occupation in the Flexible Products & Services reporting unit and the resulting financial impacts were determined to be a potential impairment indicator, requiring the Company to perform an interim impairment analysis. Based on the results of the interim impairment analysis of the goodwill for the Flexible Products & Services reporting unit, it was concluded that no goodwill impairment was required as of April 30, 2014. The estimated fair value of the Flexible Products & Services reporting unit was approximately 23% greater than the carrying amount of its assets (including goodwill) and liabilities at April 30, 2014.

The following table summarizes the carrying amount of net intangible assets by class as of April 30, 2014 and October 31, 2013 (Dollars in millions):


	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
October 31, 2013:
Trademark and patents	$	31.1	$	4.3	$	26.8
Non-compete agreements		14.6		12.6		2.0
Customer relationships		205.6		69.4		136.2
Other		23.5		7.7		15.8

Total	$	274.8	$	94.0	$	180.8

April 30, 2014:
Trademark and patents	$	31.4	$	4.2	$	27.2
Non-compete agreements		6.3		4.8		1.5
Customer relationships		216.6		76.2		140.4
Other		30.0		10.5		19.5

Total	$	284.3	$	95.7	$	188.6

Gross intangible assets increased by $9.5 million for the six month period ended April 30, 2014. The increase in gross intangible assets was attributable to $14.0 million in preliminary purchase price allocations related to the two acquisitions completed in 2014, offset by a decrease related to currency fluctuations and the write-off of certain fully-amortized assets. Amortization expense for the three months ended April 30, 2014 and 2013 was $8.1 million and $5.2 million, respectively. Amortization expense for the six months ended April 30, 2014 and 2013 was $13.3 million and $10.2 million, respectively. Amortization expense for the next five years is expected to be $23.4 million in 2014, $21.1 million in 2015, $20.4 million in 2016, $19.6 million in 2017 and $19.1 million in 2018.

All intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that are contractually or legally determined or through purchase price accounting, except for $14.7 million related to the Tri-Sure trademark and trade names related to Blagden Express, Closed-loop and Box Board, all of which have indefinite lives. During the six month period ended April 30, 2014, certain intangible assets previously identified as having indefinite lives were determined to have definite lives, resulting in $2.5 million of amortization expense in the three month period ended April 30, 2014 that was related to prior periods.

- 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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