Intangible Assets

12 Months Ended

Jan. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3—Intangible Assets

Intangible assets are as follows:


	January 31, 2022									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	$	(2,515	)	$	—	$	585	$	3,100	$	(2,284	)	$	—	$	816
RITEC:
Customer Contract Relationships		2,830		(1,557	)		—		1,273		2,830		(1,423	)		—		1,407
TrojanLabel:
Existing Technology		2,327		(1,767	)		127		687		2,327		(1,405	)		196		1,118
Distributor Relations		937		(498	)		46		485		937		(396	)		89		630
Honeywell:
Customer Contract Relationships		27,243		(11,073	)		—		16,170		27,243		(9,712	)		—		17,531

Intangible Assets, net	$	36,437	$	(17,410	)	$	173	$	19,200	$	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 $1.8 million decrease in amortization expense and a $1.8 million increase to net income for the period ended January 31, 2022

There were no impairments to intangible assets during the periods ended January 31, 2022 and 2021. Amortization expense of $2.2 million

$4.1 million and $4.2 million with regard to acquired intangibles has been included in the consolidated statements of income for

the

years ended January 31, 2022, 2021 and 2020, respectively.

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


(In thousands)	2023		2024		2025		2026		2027
Estimated amortization expense	$	1,632	$	1,693	$	1,008	$	1,008	$	1,008