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Goodwill and Intangible Assets | 12 Months Ended
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Oct. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5 — 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. 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 in 2018, 2017, or 2016. Changes in the carrying amount of goodwill during 2018 by operating segment:
|  | Adhesive Dispensing Systems |  |  | Advanced Technology Systems |  |  | Industrial Coating Systems |  |  | Total |
Balance at October 31, 2017 |  | $ | 392,295 |  |  | $ | 1,172,857 |  |  | $ | 24,058 |  |  | $ | 1,589,210 |
Acquisitions |  |  | — |  |  |  | 24,679 |  |  |  | — |  |  |  | 24,679 |
Currency effect |  |  | (3,304 | ) |  |  | (2,567 | ) |  |  | — |  |  |  | (5,871 | )
Balance at October 31, 2018 |  | $ | 388,991 |  |  | $ | 1,194,969 |  |  | $ | 24,058 |  |  | $ | 1,608,018 |
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 |
Accumulated impairment losses, which were recorded in 2009, were $232,789 at October 31, 2018 and October 31, 2017. 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, 2018 |
|  | Carrying Amount |  |  | Accumulated Amortization |  |  | Net Book Value |
Customer relationships |  | $ | 480,404 |  |  | $ | 137,640 |  |  | $ | 342,764 |
Patent/technology costs |  |  | 153,602 |  |  |  | 59,845 |  |  |  | 93,757 |
Trade name |  |  | 96,433 |  |  |  | 34,768 |  |  |  | 61,665 |
Noncompete agreements |  |  | 11,469 |  |  |  | 9,919 |  |  |  | 1,550 |
Other |  |  | 1,386 |  |  |  | 1,381 |  |  |  | 5 |
Total |  | $ | 743,294 |  |  | $ | 243,553 |  |  | $ | 499,741 |
|  | 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 |
Amortization expense for 2018, 2017 and 2016 was $55,448, $44,907 and $29,061 respectively. Estimated amortization expense for each of the five succeeding years:
Year |  | Amounts |
2019 |  | $ | 48,523 |
2020 |  | $ | 48,055 |
2021 |  | $ | 42,703 |
2022 |  | $ | 38,730 |
2023 |  | $ | 37,885 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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