Goodwill and Intangible Assets

9 Months Ended

Jan. 31, 2025

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, 2024	$	917,689	$	(63,922)	$	853,767
Goodwill recognized from acquisitions	67,027		—		67,027
Impairment of goodwill	—		(42,454)		(42,454)
Goodwill written off related to sale of business	(1,744)		—		(1,744)
Acquisition accounting adjustments from prior period	2,486		—		2,486
Translation adjustment	(11,523)		2,468		(9,055)
Balance as of January 31, 2025	$	973,935	$	(103,908)	$	870,027

As of January 31, 2025, $804.7 million of goodwill was assigned to the Company’s geographic divisions reportable segment and $65.3 million was assigned to the Company’s other segment. During the nine months ended January 31, 2025, the Company recorded measurement period adjustments related to its acquisition of Kamco Supply Corporation and affiliates.

During the three months ended January 31, 2025, the Company recognized a $42.5 million non-cash impairment charge to write off a portion of the goodwill assigned to its Ames reporting unit in conjunction with an interim goodwill impairment test. This charge is included in impairment of goodwill in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine months ended January 31, 2025. After analysis of a number of factors, including budgeted-to-actual performance, a downward revision to forecasted future cash flows and the prior year excess of fair value over carrying value, the Company determined it was appropriate to perform an interim goodwill impairment test as of January 31, 2025. The primary factor contributing to the impairment was a decrease in the reporting unit’s forecasted future cash flows, primarily due to softness in the markets the reporting unit operates in stemming from high interest rates and other

economic factors as well as delay in the projected timing of a recovery. Also contributing was an increase in the discount rate and a decrease in market multiples. The impairment charge was equal to the excess of the reporting unit’s carrying value over its fair value. As of January 31, 2025, the Company had $65.3 million of remaining goodwill assigned to its Ames reporting unit.

The Company estimated the fair value of its Ames reporting unit based on a 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 calculated 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, 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.

The Company also performed a quantitative assessment of the Ames reporting unit indefinite-lived intangible asset and performed a recoverability test of the Ames reporting unit definite-lived intangible assets, both of which did not indicate an impairment.

Intangible Assets

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


	Estimated Useful Lives (years)	Weighted Average Amortization Period	January 31, 2025
			Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(dollars in thousands)
Customer relationships	5-15	12.6	$	777,649	$	(436,249)	$	341,400
Definite-lived trade names	5-20	15.4	154,104		(39,441)		114,663
Developed technology	5-10	7.0	8,077		(5,811)		2,266
Other	3-10	5.5	8,023		(2,276)		5,747
Definite-lived intangible assets		13.0	$	947,853	$	(483,777)	$	464,076
Indefinite-lived intangible assets							84,367
Total intangible assets, net							$	548,443


	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
Developed technology	5-10	6.9	8,249		(5,843)		2,406
Other	3-10	5.6	6,142		(1,175)		4,967
Definite-lived intangible assets		13.1	$	853,069	$	(434,748)	$	418,321
Indefinite-lived intangible assets							84,367
Total intangible assets, net							$	502,688

Amortization expense related to definite-lived intangible assets was $21.2 million and $15.5 million for the three months ended January 31, 2025 and 2024, respectively, and $61.5 million and $47.2 million during the nine months ended January 31, 2025 and 2024, respectively.

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 (remaining three months)	$	19,590
2026	74,347
2027	66,526
2028	58,011
2029	50,331
Thereafter	195,271
Total	$	464,076

The Company’s indefinite-lived intangible assets as of January 31, 2025 and April 30, 2024 consisted of indefinite-lived trade names.