Goodwill and Intangible Assets

9 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

Goodwill

	Roller		Plain		Ball		Engineered Products			Total
March 31, 2018	$	16,007	$	79,597	$	5,623	$	166,897		$	268,124
Disposition		—		—		—		(6,691	)		(6,691	)
Translation adjustments		—		—		—		(2	)		(2	)
December 29, 2018	$	16,007	$	79,597	$	5,623	$	160,204		$	261,431

$6,691 of goodwill was included in the net loss on the sale of the Miami division during the third quarter of fiscal 2019. Miami was previously included within the Engineered Products (“EP”) Reporting Unit (“RU”). When a business within an RU is sold, the Company is required to perform an interim goodwill impairment test on that RU which consists of two steps. First, the Company determines the fair value of the RU and compares it to its carrying amount. Second, if the carrying amount of the RU exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the RU’s goodwill over the goodwill’s implied fair value. The Company conducted this interim test over the EP RU as of the date of sale (November 28, 2018) using the same approach used during our most recent annual test (the income approach, also known as the discounted cash flow method). The key assumptions used in the discounted cash flow method used to estimate fair value include discount rates, revenue growth rates, terminal growth rates and cash flow projections. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors for each RU in determining the appropriate discount rate to be used. The discount rate utilized for the EP RU for our interim test was 11.0% and is indicative of the return an investor would expect to receive for investing in such a business. Terminal growth rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and long-term growth rates. The terminal growth rate used for our interim test was 2.5%. The Company has determined that, to date, no impairment of goodwill exists and fair value of the EP RU exceeded the carrying value in total by approximately 21.9%. A decrease of 1.0% in our terminal growth rate would not result in impairment of goodwill for the EP RU. An increase of 1.0% in our discount rate would not result in impairment of goodwill for the EP RU. The Company will perform the annual impairment testing during the fourth quarter of fiscal 2019 for all of the Company’s RUs. Although no changes are expected, if the actual results of the Company are less favorable than the assumptions the Company makes regarding estimated cash flows, the Company may be required to record an impairment charge in the future.

Intangible Assets

			December 29, 2018				March 31, 2018
	Weighted Average Useful Lives		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Product approvals		24	$	50,878	$	9,950	$	50,878	$	8,351
Customer relationships and lists		24		96,458		18,188		106,583		16,499
Trade names		10		15,959		7,092		18,734		6,765
Distributor agreements		5		722		722		722		722
Patents and trademarks		16		10,350		5,353		9,657		4,810
Domain names		10		437		437		437		430
Other		6		2,361		2,023		1,433		1,303
				177,165		43,765		188,444		38,880
Non-amortizable repair station certifications		n/a		24,281		—		34,200		—
Total			$	201,446	$	43,765	$	222,644	$	38,880

$9,919 of net assets associated with the repair station certifications, $8,674 of net assets associated with customer relationships, and $1,780 of net assets associated with trade names were included in the net loss on the sale of the Miami division during the third quarter of fiscal 2019.

Amortization expense for definite-lived intangible assets for the three and nine-month periods ended December 29, 2018 were $2,400 and $7,331, respectively, compared to $2,303 and $7,041 for the three and nine-month periods ended December 30, 2017, respectively. Estimated amortization expense for the remaining three months of fiscal 2019, the five succeeding fiscal years and thereafter is as follows:

2019	$	2,297
2020		8,053
2021		8,002
2022		7,885
2023		7,801
2024		7,670
2025 and thereafter		91,692