Intangible Assets and Goodwill

9 Months Ended

Jul. 31, 2011

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

A summary of intangible assets is as follows:


	July 31, 2011							October 31, 2010
						Net							Net
	Gross		Amorti-			Book		Gross		Amorti-			Book
In thousands	Amount		zation			Value		Amount		zation			Value
Amortizable trademarks	$	20,199	$	(9,503	)	$	10,696	$	19,752	$	(8,308	)	$	11,444
Amortizable licenses		14,776		(12,805	)		1,971		13,219		(10,465	)		2,754
Other amortizable intangibles		9,052		(5,876	)		3,176		8,386		(5,318	)		3,068
Non-amortizable trademarks		123,091		—			123,091		123,301		—			123,301

	$	167,118	$	(28,184	)	$	138,934	$	164,658	$	(24,091	)	$	140,567

		Certain trademarks and licenses will continue to be amortized by the Company using estimated useful lives of 10 to 25 years with no residual values. Intangible amortization expense for the nine month periods ended July 31, 2011 and 2010 was $2.3 million and $2.4 million, respectively. Annual amortization expense is estimated to be approximately $3.0 million in the fiscal years ending October 31, 2011 and 2012 and approximately $2.0 million in the fiscal years ending October 31, 2013 through October 31, 2016.

		Due to the natural disasters that occurred throughout the Asia/Pacific region during the three months ended April 30, 2011 and their resulting impact on the Company’s business, the Company remeasured the value of its intangible assets in its Asia/Pacific segment in accordance with Accounting Standards Codification (“ASC”) 350 as of April 30, 2011. As a result, the Company noted that the carrying value of these assets was in excess of their estimated fair value, and therefore, the Company recorded related goodwill impairment charges of approximately $74.1 million during the three months ended April 30, 2011. The fair value of assets was estimated using a combination of a discounted cash flow approach and market approach. The value implied by the test was affected by (1) a reduction in near-term future cash flows expected for the Asia/Pacific segment, (2) the discount rates which were applied to future cash flows, and (3) current market estimates of value. The projected future cash flows, discount rates applied and current estimates of market value have all been impacted by the aforementioned natural disasters that occurred throughout the Asia/Pacific region, contributing to the estimated decline in value. Goodwill in the Asia/Pacific segment arose primarily from the acquisition of the Australian and Japanese distributors in fiscal 2003, including subsequent earnout payments to the former owners of these businesses, and the acquisition of certain Australian retail store locations in fiscal 2005.

		Goodwill related to the Company’s operating segments is as follows:


	July 31,		October 31,
In thousands	2011		2010
Americas	$	76,374	$	75,051
Europe		190,968		181,555
Asia/Pacific		6,207		75,882

	$	273,549	$	332,488

Goodwill decreased approximately $58.9 million during the nine months ended July 31, 2011, primarily as a result of the $74.1 goodwill impairment recorded related to the Company’s Asia/Pacific segment. This decrease was partially offset by an increase of approximately $9.6 million related to the effect of changes in foreign currency exchange rates and an increase of approximately $5.6 million related to minor acquisitions.

- 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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