GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2012

NOTE 6 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the changes in the carrying amount of goodwill by segment for the year ended October 31, 2012 and 2011 (Dollars in millions):


	Rigid Industrial Packaging & Services			Flexible Products & Services			Paper Packaging			Land Management		Total
Balance at October 31, 2010	$	568.3		$	78.2		$	60.7		$	0.2	$	707.4
Goodwill acquired		287.9			—			—			—		287.9
Goodwill adjustments		9.8			(1.8	)		(1.0	)		—		7.0
Currency translation		(1.4	)		1.7			—			—		0.3

Balance at October 31, 2011	$	864.6		$	78.1		$	59.7		$	0.2	$	1,002.6
Goodwill acquired		—			—			—			—		—
Goodwill adjustments		14.9			0.2			—			—		15.1
Currency translation		(34.9	)		(6.7	)		—			—		(41.6	)

Balance at October 31, 2012	$	844.6		$	71.6		$	59.7		$	0.2	$	976.1

The goodwill adjustments during 2012 increased goodwill by a net amount of $15.1 million related to the finalization of purchase price allocation of prior year acquisitions. Goodwill from prior year acquisitions has been adjusted to properly reflect deferred tax assets and liabilities and tax reserves in our Rigid Industrial Packaging & Services.

The goodwill acquired during 2011 of $287.9 million consisted of preliminary goodwill related to acquisitions in the Rigid Industrial Packaging & Services segment.

The goodwill adjustments during 2011 increased goodwill by a net amount of $7.0 million related to the finalization of purchase price allocation of prior year acquisitions. Certain business combinations that occurred at or near year end were recorded with provisional estimates for fair value based on management’s best estimate.

The Company reviews goodwill by reporting unit and indefinite-lived intangible assets for impairment as required by ASC 350, “Intangibles—Goodwill and Other”, either annually in the fourth quarter or whenever events and circumstances indicate impairment may have occurred. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management.

As of October 31, 2011, the Company recognized an impairment charge of $3.0 million related to the discontinued usage of certain trade names in our Flexible Products and Services segment. The Company concluded that further no impairment or impairment indicators exist as of October 31, 2012.

The following table summarizes the carrying amount of net intangible assets by class as of October 31, 2012 and October 31, 2011 (Dollars in millions):


	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
October 31, 2012:
Trademarks and patents	$	32.5	$	3.6	$	28.9
Non-compete agreements		14.4		11.1		3.3
Customer relationships		201.1		53.6		147.5
Other		23.8		4.9		18.9

Total	$	271.8	$	73.2	$	198.6

October 31, 2011:
Trademarks and patents	$	47.4	$	17.7	$	29.7
Non-compete agreements		22.8		9.3		13.5
Customer relationships		183.0		22.8		160.2
Other		33.1		7.7		25.4

Total	$	286.3	$	57.5	$	228.8

Gross intangible assets decreased by $14.5 million for the year ended October 31, 2012. The decrease in gross intangible assets was attributable to $16.4 million of currency fluctuations, offset by $1.9 million to the purchase price allocations related to 2011 acquisitions in the Rigid Industrial Packaging & Services segment. Amortization expense was $20.3 million, $18.6 million and $14.4 million for 2012, 2011 and 2010, respectively. Amortization expense for the next five years is expected to be $19.9 million in 2013, $19.4 million in 2014, $18.4 million in 2015, $17.9 million in 2016 and $17.4 million in 2017.

All intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that range from three to 15 years for trade names, two to ten years for non-competes, one to 23 for customer relationships and four to 20 for other intangibles, except for $23.3 million related to the Tri-Sure trademark and trade names related to Blagden Express, Closed-loop, Box Board and Fustiplast, all of which have indefinite lives.

- 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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