XML 63 R17.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and Other Intangible Assets
 12 Months Ended
Oct. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
 
 
Goodwill
(in millions)
Business & Industry
 
Aviation
 
Technology & Manufacturing
 
Education
 
Technical Solutions
 
Healthcare
 
Total
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(1)
—

 
—

 
—

 
—

 
(20.3
)
 
—

 
(20.3
)
Balance at October 31, 2018
$
527.9

 
$
124.9

 
$
407.2

 
$
557.4

 
$
158.7

 
$
58.7

 
$
1,834.8

Reallocation(2)
45.7

 
—

 
—

 
1.2

 
11.8

 
(58.7
)
 
—

Foreign currency translation
0.3

 
0.1

 
—

 
—

 
0.3

 
—

 
0.6

Balance at October 31, 2019
$
573.9

 
$
125.0

 
$
407.2

 
$
558.6

 
$
170.7

 
$
—

 
$
1,835.4


(1) Represents accumulated impairment charges at October 31, 2019.
(2) Goodwill associated with our Healthcare business was reallocated in connection with the reorganization of this business during the third quarter of 2019.
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. We did not record goodwill impairment charges during 2019 or 2017.
Other Intangible Assets
 
October 31, 2019
 
October 31, 2018
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Total
 
Gross Carrying Amount
 
Accumulated Amortization
 
Total
Customer contracts and relationships(1)
$
595.9

 
$
(298.9
)
 
$
297.0

 
$
595.7

 
$
(243.6
)
 
$
352.2

Trademarks and trade names
9.8

 
(9.8
)
 
0.1

 
9.8

 
(6.4
)
 
3.4

Contract rights and other
0.5

 
(0.4
)
 
0.1

 
0.5

 
(0.4
)
 
0.1

Total(2)
$
606.2

 
$
(309.0
)
 
$
297.2

 
$
606.0

 
$
(250.4
)
 
$
355.7


(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 12 years.
Estimated Annual Amortization Expense For Each of the Next Five Years
(in millions)
2020
 
2021
 
2022
 
2023
 
2024
Estimated amortization expense(1)
$
49.4

 
$
43.8

 
$
38.2

 
$
33.6

 
$
29.1


(1) These amounts could vary as acquisitions of additional intangible assets occur in the future.
During 2018, we 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. We did not record impairment charges on other intangible assets during 2019 or 2017.
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.