GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2017 are as follows (in thousands):



	Segment				Consolidated Totals
	FSG		ETG		Consolidated Totals
Balances as of October 31, 2016		$336,681		$529,036		$865,717
Goodwill acquired	49,297		—		49,297
Foreign currency translation adjustments	3,389		3,575		6,964
Balances as of July 31, 2017		$389,367		$532,611		$921,978

The goodwill acquired pertains to the fiscal 2017 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 and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The Company estimates that the majority of the goodwill acquired in fiscal 2017 will be deductible for income tax purposes.

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



	As of July 31, 2017							As of October 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$280,377		($109,195	)		$171,182		$248,271		($88,829	)		$159,442
Intellectual property	143,001		(41,888		)	101,113		139,817		(33,291		)	106,526
Licenses	6,559		(2,778		)	3,781		6,559		(2,325		)	4,234
Patents	853		(537		)	316		779		(480		)	299
Non-compete agreements	821		(821		)	—		811		(811		)	—
Trade names	466		(108		)	358		466		(77		)	389
	432,077		(155,327		)	276,750		396,703		(125,813		)	270,890
Non-Amortizing Assets:
Trade names	114,176		—			114,176		95,973		—			95,973
		$546,253		($155,327	)		$390,926		$492,676		($125,813	)		$366,863

The increase in the gross carrying amount of customer relationships, non-amortizing trade names and intellectual property as of July 31, 2017 compared to October 31, 2016 principally relates to such intangible assets recognized in connection with the fiscal 2017 acquisitions (see Note 2, Acquisitions). The weighted-average amortization period of the customer relationships and intellectual property acquired during fiscal 2017 is 12 and 13 years, respectively.

Amortization expense related to intangible assets for the nine months ended July 31, 2017 and 2016 was $28.2 million and $27.0 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2017 and 2016 was $9.9 million and $9.4 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2017 is estimated to be $10.0 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $38.2 million in fiscal 2018, $35.9 million in fiscal 2019, $33.2 million in fiscal 2020, $30.5 million in fiscal 2021, $25.3 million in fiscal 2022, and $103.7 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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