Goodwill and Other Intangible Assets

12 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill



(in millions)	Business & Industry			Aviation			Technology & Manufacturing			Education			Technical Solutions			Healthcare			Total
Balance at October 31, 2016	$	404.8		$	120.0		$	130.7		$	49.7		$	169.8		$	37.8		$	912.8
Acquisitions⁽¹⁾	122.9			4.4			278.6			511.6			6.4			21.1			945.0
Foreign currency translation	2.2			0.4			—			—			3.8			—			6.4
Balance at October 31, 2017	$	529.9		$	124.8		$	409.3		$	561.3		$	180.0		$	58.9		$	1,864.2
Purchase price adjustments	(0.9		)	0.4			(2.1		)	(3.8		)	0.4			(0.2		)	(6.2		)
Foreign currency translation	(1.1		)	(0.2		)	—			—			(1.5		)	—			(2.8		)
Impairment loss⁽²⁾	—			—			—			—			(20.3		)	—			(20.3		)
Balance at October 31, 2018	$	527.9		$	124.9		$	407.2		$	557.4		$	158.7		$	58.7		$	1,834.8

⁽¹⁾During 2017, goodwill primarily increased as a result of the GCA acquisition. See Note 3, “Acquisitions,” for additional information.

⁽²⁾ Represents accumulated impairment charges at October 31, 2018.

During the fourth quarter of 2018, as part of our annual assessment of goodwill, we recorded a goodwill impairment charge of $20.3 million for one of our reporting units within the Technical Solutions segment. In 2018, this reporting unit’s performance primarily reflected the adverse impact of Brexit and the resulting impact on microeconomic conditions in the U.K. retail sector and the anticipated loss of a significant customer contract. The impairment was also attributable to a decline in profitability in the second half of 2018 and a revised future outlook for the business, including reduced expectations of future sales, operating margins, and cash flows.

In addition, on November 1, 2017, we reorganized our reportable segments and goodwill reporting units. In connection with this reorganization, we performed a qualitative goodwill impairment test immediately before and after the segment realignment. In analyzing the results of operations and business conditions of the goodwill reporting units, we determined the likelihood of a goodwill impairment did not reach the more-likely-than-not threshold specified in U.S. GAAP for any of the reporting units that were evaluated. Accordingly, we concluded that goodwill related to those reporting units was not impaired and further quantitative testing was not required.

During 2016, we recorded a goodwill impairment charge of $6.0 million when we classified our Government Services business as held for sale, based upon the estimated fair value of the business at that time. During the second quarter of 2017 we received an offer from a strategic buyer to purchase this business for an amount in excess of our original estimate less costs to sell. As a result, we recorded a full impairment recovery of the aforementioned $6.0 million goodwill impairment in 2017.

Other Intangible Assets



	October 31, 2018							October 31, 2017
(in millions)	Gross Carrying Amount		Accumulated Amortization			Total		Gross Carrying Amount		Accumulated Amortization			Total
Customer contracts and relationships⁽¹⁾	$	595.7	$	(243.6	)	$	352.2	$	607.9	$	(186.3	)	$	421.6
Trademarks and trade names	9.8		(6.4		)	3.4		10.8		(2.4		)	8.4
Contract rights and other	0.5		(0.4		)	0.1		0.5		(0.4		)	0.1
Total⁽²⁾	$	606.0	$	(250.4	)	$	355.7	$	619.2	$	(189.1	)	$	430.1

⁽¹⁾ Reflects a net impairment charge of $6.2 million recorded in 2018, consisting of a $10.5 million reduction in the gross carrying amount of the underlying customer relationships less $4.3 million of accumulated amortization.

⁽²⁾ These intangible assets are being amortized over the expected period of benefit, with a weighted average life of approximately 13 years.

Estimated Annual Amortization Expense For Each of the Next Five Years



(in millions)	2019		2020		2021		2022		2023
Estimated amortization expense⁽¹⁾	$	58.5	$	49.3	$	43.8	$	38.2	$	33.6

⁽¹⁾ These amounts could vary as acquisitions of additional intangible assets occur in the future.

During 2018, we also recorded an impairment charge of $6.2 million on customer relationships in the same reporting unit within the Technical Solutions segment due to the same factors discussed above.

During 2016, we recorded an impairment charge of $4.4 million on certain intangible assets when we classified our Government Services business as held for sale, which was subsequently recovered in 2017 when we received an offer from a strategic buyer to purchase this business that was higher than our estimate of fair value less costs to sell.

The estimates of future cash flows used in determining the fair value of goodwill and other intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions, and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management’s estimates due to changes in business conditions, operating performance, and economic conditions.

- 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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