Goodwill and Intangible Assets (Notes)

12 Months Ended

Feb. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and indefinite-lived intangible assets are not amortized but are subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives.

Changes in goodwill by segment for fiscal year 2019 and 2018 are as follows (in thousands):



Segment	February 28, 2018		Acquisitions		Foreign Exchange Translation			February 28, 2019
Metal Coatings	$	117,232	$	73	$	(614	)	$	116,691
Energy	204,075		2,990		—			207,065
Total	$	321,307	$	3,063	$	(614	)	$	323,756



Segment	February 28, 2017		Acquisitions		Foreign Exchange Translation		February 28, 2018
Metal Coatings	$	109,980	$	6,590	$	662	$	117,232
Energy	196,599		7,476		—		204,075
Total	$	306,579	$	14,066	$	662	$	321,307

The Company completes its annual impairment analysis of goodwill on December 31st of each year. As a result, the Company determined that there was no impairment of goodwill.

Amortizable intangible assets consisted of the following (in thousands):



	February 28, 2019			February 28, 2018
Customer related intangibles	$	191,460		$	194,712
Non-compete agreements	8,546			7,952
Trademarks	4,569			4,569
Technology	7,400			7,400
Engineering drawings	24,600			24,600
Backlog	7,600			7,600
Gross intangible assets	244,175			246,833
Less accumulated amortization	(122,199		)	(105,642		)
Total, net	$	121,976		$	141,191

The Company recorded amortization expense of $17.0 million, $17.1 million and $16.9 million for fiscal 2019, 2018 and 2017, respectively, related to the amortizable intangible assets listed above. In addition to its amortizable intangible assets, the Company has recorded indefinite-lived intangible assets of $3.4 million and $2.7 million on the consolidated balance sheets at February 28, 2019 and 2018, respectively, related to certain tradenames acquired as part of business acquisitions in fiscal 2018 and fiscal 2019. These indefinite-lived intangible assets are not amortized, but are assessed for impairment annually or whenever an impairment may be indicated. During fiscal 2019, the Company performed an annual review of its indefinite-lived intangibles and no impairment was indicated.

The estimated amortization expense for the five succeeding fiscal years and thereafter is as follows (in thousands):



Fiscal year:	Amortization Expense
2020	$	16,393
2021	16,227
2022	14,142
2023	13,058
2024	11,121
Thereafter	51,035
Total	$	121,976

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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