Goodwill and Intangible Assets

9 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

Goodwill

The following table presents changes in the carrying amount of goodwill during the nine months ended January 31, 2020:

	Carrying
	Amount
	(in thousands)
Balance as of April 30, 2019	$	617,327
Goodwill acquired		3,821
Translation adjustment		2,922
Balance as of January 31, 2020	$	624,070

Intangible Assets

The following tables present the components of the Company’s definite-lived intangible assets as of January 31, 2020 and April 30, 2019:

	Estimated	Weighted	January 31, 2020
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 16	12.8	$	528,081	$	259,727	$	268,354
Definite-lived tradenames	5 - 20	16.3		56,797		9,741		47,056
Vendor agreements	8 - 10	8.3		6,644		4,365		2,279
Developed technology	5	4.9		5,293		1,794		3,499
Leasehold interests	1 - 15	7.6		3,720		2,026		1,694
Other	3 - 5	3.3		4,292		2,195		2,097
Totals			$	604,827	$	279,848	$	324,979

	Estimated	Weighted	April 30, 2019
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 16	12.8	$	520,703	$	214,044	$	306,659
Definite-lived tradenames	5 - 20	16.3		56,018		6,993		49,025
Vendor agreements	8 - 10	8.3		6,644		3,761		2,883
Developed technology	5	4.9		5,209		971		4,238
Leasehold interests	1 - 15	7.6		3,707		1,502		2,205
Other	3 - 5	3.4		4,118		1,182		2,936
Totals			$	596,399	$	228,453	$	367,946

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 flows 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 $16.5 million and $18.3 million for the three months ended January 31, 2020 and 2019, respectively, and $50.3 million and $53.3 million for the nine months ended January 31, 2020 and 2019, 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 $15.3 million during the remaining three months in the fiscal year ending April 30, 2020 and $56.3 million, $47.0 million, $39.2 million, $31.9 million and $135.3 million during the fiscal years ending April 30, 2021, 2022, 2023, 2024 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, foreign currency exchange rate fluctuations and other relevant factors.

The Company’s indefinite-lived intangible assets consist of tradenames that had a carrying amount of $61.4 million as of January 31, 2020 and April 30, 2019.