XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.8.0.1

PURCHASED INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Jan. 31, 2018
PURCHASED INTANGIBLE ASSETS |
PURCHASED INTANGIBLE ASSETS | NOTE 8 — PURCHASED INTANGIBLE ASSETS At January 31, 2018, the goodwill balances related to the acquisitions of GPS, TRC and APC were $18.5 million, $13.8 million and $2.0 million, respectively. TRC’s management completed a reforecasting of its future financial results which provided essential data for the required annual goodwill assessment of TRC as of November 1, 2017. It presents a less favorable outlook for TRC, which represents the Company’s industrial fabrication and field services reportable segment, than in the past. With this new information and using various valuation analyses, including discounted net after tax cash flow estimates, management determined that the goodwill associated with this segment was impaired. The corresponding loss of $0.6 million was recorded and included in the consolidated statement of earnings for the fiscal year ended January 31, 2018. The Company may be required to record additional impairment losses related to the goodwill of TRC in the future if the operating performance of TRC does not improve. Early in the year ended January 31, 2017, construction work was suspended on APC’s largest project at that time, which represented over 90% of project backlog, and APC was incurring operating losses. In addition, it was feared that the United Kingdom, considered APC’s most promising future market, would suffer unfavorable economic consequences of its vote to leave the European Economic Union (Brexit). Given these events, the Company performed a valuation of APC which indicated that the carrying value of the reporting unit exceeded its fair value at that time. As a result, APC recorded a goodwill impairment loss of approximately $2.0 million in the year ended January 31, 2017. As the operating results and business prospects of APC have improved during the year ended January 31, 2018, no additional goodwill impairment loss for APC has been required. The Company’s purchased intangible assets, other than goodwill, consisted of the following elements as of January 31, 2018.
|  |  |  | 2018 |  | 2017 |
|  | Estimated Useful Life |  | Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Net Amount |
Trade names - |  |  |  |  |  |  |  |  |  |  |
GPS / TRC |  | 15 years |  | $ | 8,142 |  | $ | 3,357 |  | $ | 4,785 |  | $ | 5,328 |
SMC |  | indefinite |  | 181 |  | — |  | 181 |  | 181 |
Process certifications - |  |  |  |  |  |  |  |  |  |  |
TRC |  | 7 years |  | 1,897 |  | 587 |  | 1,310 |  | 1,581 |
Customer relationships - |  |  |  |  |  |  |  |  |  |  |
TRC/APC |  | 4-10 years |  | 1,346 |  | 473 |  | 873 |  | 1,072 |
Other intangibles |  | various |  | 46 |  | 46 |  | — |  | 19 |
Totals |  |  |  | $ | 11,612 |  | $ | 4,463 |  | $ | 7,149 |  | $ | 8,181 |
The Company determined the fair values of the trade names using a relief-from-royalty methodology. The Company believes that the useful lives of the trade names for GPS and TRC represent the number of years that such intangibles are expected to contribute to future cash flows. The useful life for the trade name of SMC is considered to be indefinite. In order to value the process certifications of TRC, the Company applied a new reproduction cost method that required the estimation of the costs to replace the assets with certifications that would have the same functionality or utility as the acquired assets. Other purchased intangible assets presented in the table above include primarily the fair values estimated for acquired project backlogs, other customer relationships and non-compete agreements. There were no additions to other purchased intangible assets during the years ended January 31, 2018 and 2017, nor were there any impairment losses related to those assets for those years. The future amounts of amortization expense related to intangibles are presented below for the years ending January 31,:
2019 |  | $ | 1,013 |
2020 |  | 954 |
2021 |  | 905 |
2022 |  | 870 |
2023 |  | 617 |
Thereafter |  | 2,609 |
Total |  | $ | 6,968 |
For income tax reporting purposes, goodwill related to acquisitions in the approximate amount of $16.4 million is being amortized on a straight-line basis over periods of 15 years. The other amounts of the Company’s goodwill are not amortizable for income tax reporting purposes.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + 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
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration