Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents changes in the carrying amount of goodwill:


	Gross		Accumulated		Net
	Carrying Amount		Impairment Loss		Carrying Amount
	(in thousands)
Balance as of April 30, 2020	$	616,147	$	(63,074)	$	553,073
Goodwill recognized from acquisition	9,084		—		9,084
Purchase price adjustments	(159)		—		(159)
Translation adjustment	20,305		(5,973)		14,332
Balance as of April 30, 2021	$	645,377	$	(69,047)	$	576,330

All goodwill relates to the Company's geographic divisions reportable segment.

The annual impairment test during the fourth quarter of fiscal 2021 indicated that the fair value of the Company’s reporting units exceeded their carrying values. The Company identified eight reporting units for evaluating goodwill for the fiscal 2021 annual impairment test, which were Central, Midwest, Northeast, Southern, Southeast, Southwest, Western and Canada. Each of these reporting units constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results. The Company evaluates its reporting units on an annual basis.

The Company estimated the fair values of its reporting units based on weighting of the income and market approaches. These models use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under the income approach, we calculate the fair value of the reporting unit based on the present value of estimated cash flows using a discounted cash flow method. The significant assumptions used in the discounted cash flow method included internal forecasts and projections developed by management for planning purposes, available industry/market data, discount rates and the growth rate to calculate the terminal value. Under the market approaches, the fair value was estimated using the guideline company method. The Company selected guideline companies in the industry in which each reporting unit operates. The Company primarily uses revenue and EBITDA multiples based on the multiples of the selected guideline companies.

The Company recognized a $63.1 million non-cash impairment charge to write off goodwill related to its Canada reporting unit in conjunction with its annual goodwill impairment test performed in the fourth quarter of fiscal 2020. This charge was included in impairment of goodwill in the Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended April 30, 2020. The primary factors contributing to the impairment was an increase in the discount rate and a decrease in market multiples, combined with a decrease in the reporting unit’s forecasted near-term cash flows, primarily resulting from COVID-19 driven economic uncertainty. The impairment charge was equal to the excess of the reporting unit’s carrying value over its fair value. As of April 30, 2021, the Company had $144.6 million of remaining goodwill related to its Canada reporting unit. The Company’s annual impairment test during the fourth quarter of fiscal 2020 indicated the estimated fair values of its other reporting units exceeded their carrying values. The Company's annual impairment tests during the fourth quarters of fiscal 2021 and 2019 indicated that the fair value of the Company’s reporting units exceeded their carrying values.

Intangible Assets

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


	Estimated Useful Lives (years)	Weighted Average Amortization Period	April 30, 2021
			Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(dollars in thousands)
Customer relationships	5 - 16	13.3	$	569,255	$	(330,880)	$	238,375
Definite-lived tradenames	5 - 20	16.8	62,084		(14,842)		47,242
Vendor agreements	8 - 10	8.3	6,644		(5,372)		1,272
Developed technology	5	4.9	5,699		(3,381)		2,318
Other	3 - 5	3.3	4,291		(3,996)		295
Totals			$	647,973	$	(358,471)	$	289,502


	Estimated Useful Lives (years)	Weighted Average Amortization Period	April 30, 2020
			Gross Carrying Amount		Accumulated Amortization		Net Carrying 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 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 $57.6 million, $65.2 million and $71.0 million during the years ended April 30, 2021, 2020 and 2019, respectively, and is recorded in depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income (Loss).

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)
2022	$	53,094
2023	44,251
2024	36,024
2025	29,738
2026	24,807
Thereafter	101,588
Total	$	289,502

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