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Goodwill and Intangible Assets | 12 Months Ended
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Oct. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 6 — Goodwill and intangible assets We account for goodwill and other intangible assets in accordance with the provisions of ASC 350 and account for business combinations using the acquisition method of accounting and accordingly, the assets and liabilities of the entities acquired are recorded at their estimated fair values at the acquisition date. Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible net assets acquired in various business combinations. Goodwill is not amortized but is tested for impairment annually at the reporting unit level, or more often if indications of impairment exist. We assess the fair value of reporting units on a non-recurring basis using a combination of two valuation methods, a market approach and an income approach, to estimate the fair value of our reporting units. The implied fair value of our reporting units is determined based on significant unobservable inputs; accordingly, these inputs fall within Level 3 of the fair value hierarchy. Our reporting units are the Adhesive Dispensing Systems segment, the Industrial Coating Systems segment and one level below the Advanced Technology Systems segment. In the fourth quarter of each year, we estimate a reporting unit’s fair value using a combination of the discounted cash flow method of the Income Approach and the guideline public company method of the Market Approach and compare the result against the reporting unit’s carrying value of net assets. In accordance with the new accounting standard (Refer to Note 2), which was prospectively adopted effective August 1, 2017, an impairment charge is recorded for the amount by which the carrying value of the reporting unit exceeds the fair value of the reporting unit, as calculated in the quantitative analysis described above. We did not record any goodwill impairment charges using the newly adopted accounting standard in 2017. Prior to the adoption of this new standard, the measurement of an impairment (Step 2 of the impairment test) would have been calculated by determining the implied fair value of a reporting unit’s goodwill by allocating the fair value of the reporting unit to all other assets and liabilities of that unit based on their relative fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities would have been the implied fair value of goodwill. We did not record any goodwill impairment charges using Step 2 of the impairment test in 2016 or 2015. Changes in the carrying amount of goodwill during 2017 by operating segment:
|  | Adhesive Dispensing Systems |  |  | Advanced Technology Systems |  |  | Industrial Coating Systems |  |  | Total |
Balance at October 31, 2016 |  | $ | 385,733 |  |  | $ | 697,346 |  |  | $ | 24,058 |  |  | $ | 1,107,137 |
Acquisition |  |  | — |  |  |  | 470,248 |  |  |  | — |  |  |  | 470,248 |
Currency effect |  |  | 6,562 |  |  |  | 5,263 |  |  |  | — |  |  |  | 11,825 |
Balance at October 31, 2017 |  | $ | 392,295 |  |  | $ | 1,172,857 |  |  | $ | 24,058 |  |  | $ | 1,589,210 |
Changes in the carrying amount of goodwill during 2016 by operating segment:
|  | Adhesive Dispensing Systems |  |  | Advanced Technology Systems |  |  | Industrial Coating Systems |  |  | Total |
Balance at October 31, 2015 |  | $ | 385,975 |  |  | $ | 672,342 |  |  | $ | 24,058 |  |  | $ | 1,082,375 |
Acquisition |  |  | — |  |  |  | 25,169 |  |  |  | — |  |  |  | 25,169 |
Currency effect |  |  | (242 | ) |  |  | (165 | ) |  |  | — |  |  |  | (407 | )
Balance at October 31, 2016 |  | $ | 385,733 |  |  | $ | 697,346 |  |  | $ | 24,058 |  |  | $ | 1,107,137 |
Accumulated impairment losses, which were recorded in 2009, were $232,789 at October 31, 2017 and October 31, 2016. Of these losses, $229,173 related to the Advanced Technology Systems segment and $3,616 related to the Industrial Coating Systems segment. Information regarding intangible assets subject to amortization:
|  | October 31, 2017 |
|  | Carrying Amount |  |  | Accumulated Amortization |  |  | Net Book Value |
Customer relationships |  | $ | 480,536 |  |  | $ | 102,033 |  |  | $ | 378,503 |
Patent/technology costs |  |  | 150,581 |  |  |  | 48,669 |  |  |  | 101,912 |
Trade name |  |  | 93,281 |  |  |  | 28,366 |  |  |  | 64,915 |
Noncompete agreements |  |  | 11,142 |  |  |  | 9,298 |  |  |  | 1,844 |
Other |  |  | 1,384 |  |  |  | 1,378 |  |  |  | 6 |
Total |  | $ | 736,924 |  |  | $ | 189,744 |  |  | $ | 547,180 |
|  | October 31, 2016 |
|  | Carrying Amount |  |  | Accumulated Amortization |  |  | Net Book Value |
Customer relationships |  | $ | 207,493 |  |  | $ | 71,608 |  |  | $ | 135,885 |
Patent/technology costs |  |  | 97,640 |  |  |  | 37,873 |  |  |  | 59,767 |
Trade name |  |  | 85,271 |  |  |  | 22,140 |  |  |  | 63,131 |
Noncompete agreements |  |  | 9,855 |  |  |  | 8,347 |  |  |  | 1,508 |
Other |  |  | 1,400 |  |  |  | 1,389 |  |  |  | 11 |
Total |  | $ | 401,659 |  |  | $ | 141,357 |  |  | $ | 260,302 |
Amortization expense for 2017, 2016 and 2015 was $44,907, $29,061 and $27,487 respectively. Estimated amortization expense for each of the five succeeding years:
Year |  | Amounts |
2018 |  | $ | 54,806 |
2019 |  | $ | 54,548 |
2020 |  | $ | 53,999 |
2021 |  | $ | 48,532 |
2022 |  | $ | 44,484 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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