GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company has two operating segments: the Flight Support Group (“FSG”) and the Electronic Technologies Group (“ETG”). Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2012 are as follows (in thousands):



	Segment					Consolidated Totals
	FSG		ETG			Consolidated Totals
Balances as of October 31, 2011		$192,357		$251,045			$443,402
Goodwill acquired	—		84,101			84,101
Adjustments to goodwill	—		10,145			10,145
Foreign currency translation adjustments	—		(6,363		)	(6,363		)
Other	309		—			309
Balances as of July 31, 2012		$192,666		$338,928			$531,594

The goodwill acquired pertains to the current year acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities assumed. The adjustments to goodwill during fiscal 2012 represent additional purchase price consideration paid relating to a prior year acquisition for which the earnings objectives were met in fiscal 2012. See Note 2, Acquisitions, for additional information regarding additional contingent purchase consideration. The Company estimates that approximately $13 million of the goodwill recognized in fiscal 2012 will be deductible for income tax purposes.

Identifiable intangible assets consist of the following (in thousands):



	As of July 31, 2012							As of October 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$98,313		($22,318	)		$75,995		$51,934		($18,085	)		$33,849
Intellectual property	38,164		(4,656		)	33,508		18,493		(2,236		)	16,257
Licenses	2,900		(1,051		)	1,849		2,900		(854		)	2,046
Non-compete agreements	1,338		(1,283		)	55		1,364		(1,203		)	161
Patents	625		(357		)	268		576		(313		)	263
Trade names	566		(308		)	258		569		(224		)	345
	141,906		(29,973		)	111,933		75,836		(22,915		)	52,921
Non-Amortizing Assets:
Trade names	35,277		—			35,277		25,236		—			25,236
		$177,183		($29,973	)		$147,210		$101,072		($22,915	)		$78,157

The increase in the gross carrying amount of customer relationships, intellectual property and non-amortizing trade names as of July 31, 2012 compared to October 31, 2011 principally relates to such intangible assets recognized in connection with acquisitions made during fiscal 2012 (see Note 2, Acquisitions). The weighted average amortization period of the customer relationships and intellectual property acquired is 10 years and 11 years, respectively.

Amortization expense related to intangible assets for the nine months ended July 31, 2012 and 2011 was $11.7 million and $5.4 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2012 and 2011 was $4.2 million and $1.9 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2012 is estimated to be $4.2 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $16.1 million in fiscal 2013, $15.5 million in fiscal 2014, $14.0 million in fiscal 2015, $12.6 million in fiscal 2016, $12.0 million in fiscal 2017 and $37.5 million thereafter.

- 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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