Intangible Assets

6 Months Ended

Jul. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Note 5 – Intangible Assets

Intangible assets are as follows:


	July 31, 2021									January 31, 2021
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Currency Translation Adjustment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Currency Translation Adjustment		Net Carrying Amount
Miltope:
Customer Contract Relationships	$	3,100	$	(2,399	)	$	—	$	701	$	3,100	$	(2,284	)	$	—	$	816
RITEC:
Customer Contract Relationships		2,830		(1,523	)		—		1,307		2,830		(1,423	)		—		1,407
TrojanLabel:
Existing Technology		2,327		(1,590	)		174		911		2,327		(1,405	)		196		1,118
Distributor Relations		937		(448	)		76		565		937		(396	)		89		630
Honeywell:
Customer Contract Relationships		27,243		(10,653	)		—		16,590		27,243		(9,712	)		—		17,531

Intangible Assets, net	$	36,437	$	(16,613	)	$	250	$	20,074	$	36,437	$	(15,220	)	$	285	$	21,502

In the second quarter of the current year, we extended the remaining useful life of the customer contract relationship intangibles for Honeywell International, Inc. (“Honeywell”) from

6 years to 20 years and for the

RITEC intangibles we changed the amortization method which was based on revenue with a remaining life

of 4 years to the straight-line method with a 20

-year remaining life. We believe these changes, based on the life of the aircraft related to these intangibles, appropriately reflects a more systematic and rational approach to distributing the cost of these intangibles over their useful lives. The change in the amortization of the Honeywell customer contract relationship intangibles is being treated as a change in accounting estimate and the change in the amortization of the RITEC customer contract relationship intangibles is being treated as a change in accounting estimate that is effected by a change in accounting principle. The changes in amortization resulted in a

$587,000 decrease in amortization expense and a $587,000, ($553,000 net of tax or $0.08

per diluted share) increase to net income for the six-month period ended July 31, 2021.

There were no impairments to intangible assets during the periods ended July 31, 2021 and August 1, 2020. With respect to the acquired intangibles included in the table above, amortization expense of $0.4 million and $1.0 million has been included in the condensed consolidated statements of income for the three months ended July 31, 2021 and August 1, 2020, respectively. Amortization expense of $1.4 million and $2.1 million related to the above acquired intangibles has been included in the accompanying condensed consolidated statement of income for the six months ended July 31, 2021 and August 1, 2020, respectively.

Estimated amortization expense for the next five fiscal years is as follows:


(In thousands)	Remaining 2022		2023		2024		2025		2026
Estimated amortization expense	$	805	$	1,641	$	1,702	$	1,010	$	1,010