PURCHASED INTANGIBLE ASSETS

6 Months Ended

Jul. 31, 2016

NOTE 8 — PURCHASED INTANGIBLE ASSETS

At July 31, 2016, the goodwill balances related to the acquisitions of GPS, TRC and APC were $18.5 million, $14.3 million and $2.0 million, respectively.

In July 2016, construction work was suspended on APC’s largest project, which reflected over 90% of its contract backlog. Additionally, APC’s primary market is the United Kingdom, which voted to leave the European Union on June 23, 2016 (“Brexit”). The resulting sterling pound drop, financial market uncertainty and recessionary pressures will likely impact the availability of financing for future power plant developments in the United Kingdom. APC’s second largest market is the Middle East, which has experienced decreased project activity due to capital constraints, resulting from decreased oil revenues. APC reported a loss for the quarter ended July 31, 2016, and will likely incur losses for the remainder of the year. Given the events above, interim analyses were performed in order to determine whether an impairment loss had occurred related to the goodwill. Using the income and market approaches, the assessment analyses indicated that the carrying value of the business exceeded its fair value. As a result, APC recorded an estimated impairment loss related to goodwill of approximately $2.0 million that has been reflected in the condensed consolidated statements of earnings for the three and six months ended July 31, 2016. No impairment loss occurred during the comparable prior year periods.

Intangible assets, other than goodwill, consisted of the following amounts at July 31 and January 31, 2016:

		July 31, 2016						January 31,
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Amount		2016 Net Amount
Trade Names
TRC	Indefinite	$	4,499	$	—	$	4,499	$	4,499
GPS	15 years	3,643		2,343		1,300		1,421
SMC	Indefinite	181		—		181		181
Process Certifications
TRC	7 years	1,897		181		1,716		1,852
Customer Relationships
TRC	10 years	916		61		855		901
APC	4 years	430		274		156		371
Other Intangibles	various	288		257		31		119

Totals		$	11,854	$	3,116	$	8,738	$	9,344

Amortization expense was $0.2 million and $0.1 million for the three months ended July 31, 2016 and 2015, respectively, and was $0.5 million and $0.2 million for the six months ended July 31, 2016 and 2015, respectively.