Goodwill

12 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3—Goodwill

Goodwill by reporting unit is as follows:


(In thousands)	Product Identification			T&M		Total

Balance at January 31, 2019	$	7,807		$	4,522	$	12,329
Foreign currency translation		(295	)		—		(295	)

Balance at January 31, 2020	$	7,512		$	4,522	$	12,034	)
Foreign currency translation		772			—		772

Balance at January 31, 2021	$	8,284		$	4,522	$	12,806

After consideration of the impact of the decline in the global economy due to the COVID-19 pandemic, coupled with the grounding of the 737 MAX in March, 2019 and the production halt in January, 2020 which negatively impacted revenues and margins in fiscal 2020 and 2021, we elected to forgo the qualitative assessment and instead performed a quantitative goodwill impairment test to determine if the carrying values of the reporting units are greater than the fair values. We utilized a blended income and market approach. The income approach was based upon a discounted cash flow model which we believe provides a fair value estimate of the reporting unit’s expected long-term operating performance. The market approach compares the reporting units to similar publicly traded companies. Based on our quantitative impairment assessment as of January 31, 2021, we determined that the fair value of the reporting units were in excess of their carrying values and therefore, no goodwill impairment had occurred.