Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2024

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, 2023	$	765,314	$	(64,501)	$	700,813
Goodwill recognized from acquisitions	155,426		—		155,426
Acquisition accounting adjustments	(822)		—		(822)
Translation adjustment	(2,229)		579		(1,650)
Balance as of April 30, 2024	$	917,689	$	(63,922)	$	853,767

As of April 30, 2024, $746.0 million of goodwill was assigned to the Company's geographic divisions reportable segment and $107.8 million was assigned to the Company's other segment. During the year ended April 30, 2024, the Company recorded measurement period adjustments related to its Engler, Meier and Justus, Inc. and Blair Building Materials, Inc. acquisitions.

The annual impairment test during the fourth quarter of fiscal 2024 indicated that the fair value of the Company’s reporting units exceeded their carrying values. The Company identified ten reporting units for evaluating goodwill for the fiscal 2024 annual impairment test, which were Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western, Canada and Ames. 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 estimates 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, the Company calculates 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 include 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 approach, the fair value is estimated using the guideline company method. The Company selects guideline companies in the industry in which each reporting unit operates. The Company primarily uses EBITDA multiples based on the multiples of the selected guideline companies.

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, 2024
			Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(dollars in thousands)
Customer relationships	5 - 15	12.8	$	695,411	$	(395,117)	$	300,294
Definite-lived trade names	5 - 20	15.4	143,267		(32,613)		110,654
Vendor agreements	10	10.0	1,000		(675)		325
Developed technology	5 - 10	6.9	8,249		(5,843)		2,406
Other	3 - 5	4.8	5,142		(500)		4,642
Definite-lived intangible assets		13.1	$	853,069	$	(434,748)	$	418,321
Indefinite-lived intangible assets							84,367
Total intangible assets, net							$	502,688


	Estimated Useful Lives (years)	Weighted Average Amortization Period	April 30, 2023
			Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(dollars in thousands)
Customer relationships	5 - 16	12.4	$	669,142	$	(432,220)	$	236,922
Definite-lived trade names	5 - 20	15.6	100,326		(25,407)		74,919
Vendor agreements	8 - 10	10.0	1,000		(575)		425
Developed technology	5 - 10	6.9	8,261		(5,596)		2,665
Other	3 - 5	3.2	1,551		(1,189)		362
Definite-lived intangible assets		12.8	$	780,280	$	(464,987)	$	315,293
Indefinite-lived intangible assets							84,367
Total intangible assets, net							$	399,660

The Company’s indefinite-lived intangible assets, other than goodwill, consist of trade names that had a carrying amount of $84.4 million as of April 30, 2024 and 2023. In connection with the Company's annual impairment test during the fourth quarter of fiscal 2024, the Company performed a quantitative assessment of the carrying value of its indefinite-lived intangible assets. Based on the Company's assessment, the Company concluded there was no impairment of its indefinite-lived intangible assets.

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 $64.2 million, $65.7 million and $63.8 million during the years ended April 30, 2024, 2023 and 2022, respectively, and is recorded in depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income.

During the year ended April 30, 2024, the Company wrote off fully amortized customer relationships with a carrying amount and accumulated amortization of $91.0 million and fully amortized other intangible assets with a carrying amount and accumulated amortization of $1.0 million.

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)
2025	$	69,663
2026	61,146
2027	53,698
2028	45,668
2029	38,936
Thereafter	149,210
Total	$	418,321