GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Apr. 30, 2012

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 six months ended April 30, 2012 are as follows (in thousands):

	Segment					Consolidated
	FSG		ETG			Totals
Balances as of October 31, 2011	$	192,357	$	251,045		$	443,402
Goodwill acquired		-		84,172			84,172
Accrued additional purchase consideration		-		10,145			10,145
Foreign currency translation adjustments		-		(2,771	)		(2,771	)
Other		309		-			309
Balances as of April 30, 2012	$	192,666	$	342,591		$	535,257

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 accrued additional purchase consideration is the result of a subsidiary of the ETG meeting certain earnings objectives in fiscal 2012. See Note 2, Acquisitions, and Note 12, Commitments and Contingencies, 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 April 30, 2012							As of October 31, 2011
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Amortizing Assets:
Customer relationships	$	99,039	($	19,335	)	$	79,704	$	51,934	($	18,085	)	$	33,849
Intellectual property		39,006		(3,798	)		35,208		18,493		(2,236	)		16,257
Licenses		2,900		(985	)		1,915		2,900		(854	)		2,046
Non-compete agreements		1,344		(1,254	)		90		1,364		(1,203	)		161
Patents		625		(337	)		288		576		(313	)		263
Trade names		566		(280	)		286		569		(224	)		345
		143,480		(25,989	)		117,491		75,836		(22,915	)		52,921
Non-Amortizing Assets:
Trade names		35,622		-			35,622		25,236		-			25,236
	$	179,102	($	25,989	)	$	153,113	$	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 April 30, 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 six months ended April 30, 2012 and 2011 was $7.5 million and $3.5 million, respectively. Amortization expense related to intangible assets for the three months ended April 30, 2012 and 2011 was $4.0 and $1.8 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2012 is estimated to be $8.4 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $16.3 million in fiscal 2013, $15.7 million in fiscal 2014, $14.2 million in fiscal 2015, $12.8 million in fiscal 2016, $12.2 million in fiscal 2017 and $37.9 million thereafter.