Goodwill and Intangible Assets

9 Months Ended

Jan. 31, 2021

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, 2021:

	Carrying
	Amount
	(in thousands)
Balance as of April 30, 2020
Goodwill	$	616,147
Accumulated impairment loss		(63,074)
		553,073
Working capital settlements		(159)
Translation adjustment		9,290
Balance as of January 31, 2021
Goodwill		625,278
Accumulated impairment loss		(63,074)
	$	562,204

Intangible Assets

The following tables present the components of the Company’s definite-lived intangible assets:

	Estimated	Weighted	January 31, 2021
	Useful	Average	Gross				Net
	Lives	Amortization	Carrying		Accumulated		Carrying
	(years)	Period	Amount		Amortization		Value
	(dollars in thousands)
Customer relationships	5 - 16	12.8	$	537,256	$	314,191	$	223,065
Definite-lived tradenames	5 - 20	16.3		58,203		13,603		44,600
Vendor agreements	8 - 10	8.3		6,644		5,171		1,473
Developed technology	5	4.9		5,477		2,970		2,507
Other	3 - 5	3.3		4,390		3,636		754
Totals			$	611,970	$	339,571	$	272,399

	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
Other	1 - 15	5.3		7,836		4,548		3,288
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 cannot be reliably determined. Amortization expense related to definite-lived intangible assets was $14.2 million and $16.5 million for the three months ended January 31, 2021 and 2020, respectively, and $43.0 million and $50.3 million for the nine months ended January 31, 2021 and 2020, respectively. Amortization expense is recorded in depreciation and amortization expense in the Condensed Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes the estimated future amortization expense for definite-lived intangible assets. 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.

Year Ending April 30,	(in thousands)
2021 (remaining three months)	$	13,088
2022		47,346
2023		39,511
2024		32,259
2025		26,682
Thereafter		113,513
Total	$	272,399

The Company’s indefinite-lived intangible assets consist of tradenames that had a carrying amount of $61.4 million as of January 31, 2021 and April 30, 2020.