GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

4. 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, 2011 are as follows:

	Segment				Consolidated
	FSG		ETG		Totals
Balances as of October 31, 2010	$	188,459,000	$	196,557,000	$	385,016,000
Goodwill acquired		3,898,000		—		3,898,000
Adjustments to goodwill		—		1,278,000		1,278,000
Accrued additional purchase consideration		—		1,198,000		1,198,000
Foreign currency translation adjustments		—		1,049,000		1,049,000
Balances as of July 31, 2011	$	192,357,000	$	200,082,000	$	392,439,000

The goodwill acquired pertains to the current year acquisition 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 represent additional purchase consideration paid relating to prior year acquisitions for which the earnings objectives were met in fiscal 2011. The accrued additional purchase consideration is the result of a subsidiary of the ETG meeting certain earnings objectives in fiscal 2011. See Note 2 and Note 13, Commitments and Contingencies, for additional information regarding additional contingent purchase consideration.

Identifiable intangible assets consist of the following:

	As of July 31, 2011							As of October 31, 2010
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Amortizing Assets:
Customer relationships	$	46,634,000	$	(16,464,000	)	$	30,170,000	$	37,338,000	$	(12,142,000	)	$	25,196,000
Intellectual property		7,392,000		(2,049,000	)		5,343,000		7,281,000		(1,372,000	)		5,909,000
Licenses		2,900,000		(788,000	)		2,112,000		1,000,000		(621,000	)		379,000
Non-compete agreements		1,376,000		(1,167,000	)		209,000		1,170,000		(1,019,000	)		151,000
Patents		576,000		(304,000	)		272,000		554,000		(270,000	)		284,000
Trade names		569,000		(196,000	)		373,000		569,000		(112,000	)		457,000
		59,447,000		(20,968,000	)		38,479,000		47,912,000		(15,536,000	)		32,376,000
Non-Amortizing Assets:
Trade names		21,017,000		—			21,017,000		17,111,000		—			17,111,000
	$	80,464,000	$	(20,968,000	)	$	59,496,000	$	65,023,000	$	(15,536,000	)	$	49,487,000

The increase in the gross carrying amount of customer relationships, licenses, non-compete agreements and non-amortizing trade names as of July 31, 2011 compared to October 31, 2010 principally relates to such intangible assets recognized in connection with an acquisition made during the first quarter of fiscal 2011 (see Note 2, Acquisitions). The weighted average amortization period of the customer relationships, licenses and non-compete agreements acquired is 10 years, 10 years and 2 years, respectively.

Amortization expense related to intangible assets for the nine months ended July 31, 2011 and 2010 was $5,422,000 and $5,446,000, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2011 and 2010 was $1,878,000 and $1,976,000, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2011 is estimated to be $1,883,000. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $6,820,000 in fiscal 2012, $6,248,000 in fiscal 2013, $5,898,000 in fiscal 2014, $4,710,000 in fiscal 2015, $3,689,000 in fiscal 2016 and $9,231,000 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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