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Goodwill and Intangible Assets
 12 Months Ended
Apr. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The following table presents changes in the carrying amount of goodwill:
GrossAccumulatedNet
Carrying AmountImpairment LossCarrying Amount
(in thousands)
Balance as of April 30, 2024$917,689 $(63,922)$853,767 
Goodwill recognized from acquisitions71,033 — 71,033 
Impairment of goodwill— (42,454)(42,454)
Goodwill written off related to sale of business(1,744)— (1,744)
Acquisition accounting adjustments2,008 — 2,008 
Translation adjustment(1,615)339 (1,276)
Balance as of April 30, 2025$987,371 $(106,037)$881,334 
As of April 30, 2025, $816.0 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. 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, 2025, the Company recorded measurement period adjustments related to its acquisition of Kamco Supply Corporation and affiliates.
Interim impairment test. 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 Consolidated Statement of Operations and Comprehensive Income for the year ended April 30, 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 April 30, 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.
Annual impairment test. The annual impairment test during the fourth quarter of fiscal 2025 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 2025 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 performed its fiscal 2025 annual goodwill test using a qualitative approach. Based on the qualitative analysis, the Company determined to perform a quantitative test for its New York reporting unit. The quantitative impairment test indicated that the fair value of the Company’s New York reporting unit exceeded its carrying value. For all other reporting units, the Company noted no factors from the qualitative assessment that were reasonably likely to cause the fair values to be less than their carrying values and therefore concluded that goodwill was not impaired.
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, 2025
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value
(dollars in thousands)
Customer relationships
5 - 15
12.8$740,425 $(409,002)$331,423 
Definite-lived trade names
5 - 20
15.4155,906 (42,598)113,308 
Developed technology
5 - 10
6.98,334 (6,125)2,209 
Other
3 - 10
5.58,070 (2,661)5,409 
Definite-lived intangible assets13.1$912,735 $(460,386)$452,349 
Indefinite-lived intangible assets84,367 
Total intangible assets, net$536,716 

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
15.4143,267 (32,613)110,654 
Developed technology
5 - 10
6.98,249 (5,843)2,406 
Other
3 - 10
5.66,142 (1,175)4,967 
Definite-lived intangible assets13.1$853,069 $(434,748)$418,321 
Indefinite-lived intangible assets84,367 
Total intangible assets, net$502,688 
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, 2025 and 2024. In connection with the Company’s annual impairment test during the fourth quarter of fiscal 2025, 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 $81.1 million, $64.2 million and $65.7 million during the years ended April 30, 2025, 2024 and 2023, respectively, and is recorded in depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income.
During the year ended April 30, 2025, the Company wrote off fully amortized customer relationships with a carrying amount and accumulated amortization of $54.0 million and fully amortized trade names with a carrying amount and accumulated amortization of $0.3 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)
2026$74,340 
202766,593 
202858,006 
202950,326 
203043,514 
Thereafter159,570 
Total$452,349