Goodwill and Intangible Assets

3 Months Ended

Jul. 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 three months ended July 31, 2020:

	Carrying
	Amount
	(in thousands)
Balance as of April 30, 2020
Goodwill	$	616,147
Accumulated impairment loss		(63,074)
		553,073
Working capital settlement		349
Translation adjustment		3,825
Balance as of July 31, 2020
Goodwill		620,321
Accumulated impairment loss		(63,074)
	$	557,247

Intangible Assets

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

	Estimated	Weighted	July 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	$	525,304	$	285,000	$	240,304
Definite-lived tradenames	5 - 20	16.3		56,704		11,514		45,190
Vendor agreements	8 - 10	8.3		6,644		4,768		1,876
Developed technology	5	4.9		5,218		2,300		2,918
Leasehold interests	1 - 15	7.6		3,708		2,224		1,484
Other	3 - 5	3.4		4,247		2,844		1,403
Totals			$	601,825	$	308,650	$	293,175

	Estimated	Weighted	April 30, 2020
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 16	12.8	$	516,928	$	270,029	$	246,899
Definite-lived tradenames	5 - 20	16.3		55,654		10,474		45,180
Vendor agreements	8 - 10	8.3		6,644		4,567		2,077
Developed technology	5	4.9		5,036		1,963		3,073
Leasehold interests	1 - 15	7.6		3,679		2,101		1,578
Other	3 - 5	3.4		4,157		2,447		1,710
Totals			$	592,098	$	291,581	$	300,517

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 $14.3 million and $16.9 million for the three months ended July 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 $40.9 million during the remaining nine months in the fiscal year ending April 30, 2021 and $46.1 million, $38.4 million, $31.3 million, $25.7 million and $110.7 million during the fiscal years ending April 30, 2022, 2023, 2024, 2025 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 July 31, 2020 and April 30, 2020.