GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Apr. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [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 six months ended April 30, 2014 are as follows (in thousands):



	Segment					Consolidated Totals
	FSG		ETG			Consolidated Totals
Balances as of October 31, 2013		$279,855		$408,634			$688,489
Foreign currency translation adjustments	—		(428		)	(428		)
Adjustment to goodwill	—		27			27
Balances as of April 30, 2014		$279,855		$408,233			$688,088

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



	As of April 30, 2014							As of October 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$154,168		($46,114	)		$108,054		$156,801		($38,461	)		$118,340
Intellectual property	75,102		(14,343		)	60,759		75,095		(10,795		)	64,300
Licenses	2,900		(1,513		)	1,387		2,900		(1,381		)	1,519
Non-compete agreements	1,123		(1,123		)	—		1,132		(1,132		)	—
Patents	690		(380		)	310		642		(351		)	291
Trade names	566		(504		)	62		566		(448		)	118
	234,549		(63,977		)	170,572		237,136		(52,568		)	184,568
Non-Amortizing Assets:
Trade names	56,945		—			56,945		56,990		—			56,990
		$291,494		($63,977	)		$227,517		$294,126		($52,568	)		$241,558

Amortization expense related to intangible assets for the six months ended April 30, 2014 and 2013 was $14.1 million and $8.9 million, respectively. Amortization expense related to intangible assets for the three months ended April 30, 2014 and 2013 was $7.0 million and $4.4 million, respectively. The increase in amortization expense for the six and three months ended April 30, 2014 compared to the six and three months ended April 30, 2013 principally relates to the incremental amortization expense of intangible assets recognized in connection with fiscal 2013 acquisitions. Amortization expense related to intangible assets for the remainder of fiscal 2014 is estimated to be $13.9 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $26.1 million in fiscal 2015, $24.2 million in fiscal 2016, $23.1 million in fiscal 2017, $21.0 million in fiscal 2018, $18.6 million in fiscal 2019 and $43.7 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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