Goodwill and Intangible Assets

6 Months Ended

Oct. 31, 2017

3. Goodwill and Intangible Assets

Goodwill

The following table presents changes in the carrying amount of goodwill during the six months ended October 31, 2017:


	Carrying
	Amount
	(in thousands)
Balance as of May 1, 2017	$	423,644
Goodwill acquired		2,529
Purchase price adjustments		115
Balance as of October 31, 2017	$	426,288

Intangible Assets

The following table presents the components of the Company’s definite-lived intangible assets as of October 31, 2017 and April 30, 2017:


	Estimated	Weighted	October 31, 2017
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 13	10.9	$	279,000	$	131,012	$	147,988
Definite-lived tradenames	5 - 20	18.0		26,250		2,501		23,749
Vendor agreements	8 - 10	8.3		6,644		2,553		4,091
Leasehold interests	7 - 15	9.0		2,866		661		2,205
Non-compete agreements	5	5.0		270		13		257
Totals			$	315,030	$	136,740	$	178,290


	Estimated	Weighted	April 30, 2017
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 13	10.9	$	273,196	$	111,291	$	161,905
Definite-lived tradenames	5 - 20	18.3		25,250		1,718		23,532
Vendor agreement	8	8.0		5,644		2,176		3,468
Leasehold interests	7 - 13	8.2		2,516		496		2,020
Totals			$	306,606	$	115,681	$	190,925

Definite-lived intangible assets are amortized over their estimated useful lives. The Company amortizes its customer relationships using an accelerated method to match the estimated cash flow generated by such assets, and amortizes its other definite-lived intangibles using the straight-line method because a pattern to which the expected benefits will be consumed or otherwise used up could not be reliably determined. Amortization expense related to definite-lived intangible assets was $10.7 million and $21.0 million for the three and six months ended October 31, 2017, respectively, and $10.8 million and $20.2 million for the three and six months ended October 31, 2016, respectively. Amortization expense is recorded in depreciation and amortization expense in the Condensed Consolidated Statements of Operations and Comprehensive Income.

Based on the current amount of definite-lived intangible assets, the Company expects to record amortization expense of approximately $20.2 million during the remaining six months in the year ending April 30, 2018 and $34.2 million, $27.5 million, $22.2 million, $18.0 million and $56.2 million during the years ended April 30, 2019, 2020, 2021, 2022 and thereafter, respectively. Actual amortization expense to be reported in future periods could differ materially from these estimates as a result of acquisitions, changes in useful lives and other relevant factors.

The Company’s indefinite-lived intangible assets consist of tradenames which had a carrying amount of $61.4 million as of October 31, 2017 and April 30, 2017.

- 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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