Goodwill and Intangible Assets

3 Months Ended

Jul. 31, 2016

3. Goodwill and Intangible Assets

The following table represents the activity of “Goodwill” from May 1, 2015 to July 31, 2016:


	Carrying
	Amount
Balance at May 1, 2015	$	348,811
Working capital adjustments		(1,338)
Goodwill acquired during the year		38,833
Balance at April 30, 2016		386,306
Working capital adjustments		(256)
Goodwill acquired during the period		7,590
Balance at July 31, 2016	$	393,640

During the three months ended July 31, 2016 the Company recorded $10,800 and $400 in customer relationships and tradenames as a result of the Wall & Ceiling Supply Co., Inc. and Rockwise, LLC acquisitions discussed in Note 2. The recently acquired customer relationships and tradenames will be amortized over weighted-average periods of 11.6 years and 10.0 years, respectively.

The Company’s definite lived intangible assets as of July 31, 2016 and April 30, 2016 consist of the following:


	Estimated	Weighted	July 31, 2016
	useful	average	Gross				Net
	lives	amortization	carrying		Accumulated		carrying
	(years)	period	amount		amortization		value
Amortizable intangible assets:
Customer relationships	5 - 13	10.8	$	219,362	$	78,882	$	140,480
Definite lived tradenames	5 - 20	19.2		16,160		670		15,490
Vendor agreement	8	—		5,644		1,646		3,998
Leasehold interests	7 - 13	8.2		2,516		258		2,258
Totals			$	243,682	$	81,456	$	162,226


	Estimated	Weighted	April 30, 2016
	useful	average	Gross				Net
	lives	amortization	carrying		Accumulated		carrying
	(years)	period	amount		amortization		value
Amortizable intangible assets:
Customer relationships	5 - 13	10.8	$	208,526	$	69,929	$	138,597
Definite lived tradenames	5 - 20	19.5		15,760		447		15,313
Vendor agreement	8	—		5,644		1,470		4,174
Leasehold interests	7 - 13	8.2		2,516		178		2,338
Totals			$	232,446	$	72,024	$	160,422

The Company’s indefinite lived intangible assets consist of tradenames which have a carrying amount of $61,368 as of July 31, 2016 and April 30, 2016.

Amortization expense related to intangible assets was $9,413 and $8,792 for the three months ended July 31, 2016 and 2015, respectively, and is recorded in “Depreciation and amortization” expense in the Condensed Consolidated Statements of Operations and Comprehensive Income.

- 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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