Goodwill and Intangible Assets

12 Months Ended

Feb. 28, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

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 2021 and 2020 were as follows (in thousands):


2021
Segment	Beginning Balance		Acquisitions		Divestiture		Assets Held for Sale		Currency Translation Adjustment		Ending Balance
Metal Coatings	$	157,048	$	1,551	$	(1,132)	$	—	$	1,192	$	158,659
Infrastructure Solutions	199,177		—		(2,262)		(1,693)		—		195,222
Total	$	356,225	$	1,551	$	(3,394)	$	(1,693)	$	1,192	$	353,881


2020
Segment	Beginning Balance		Acquisitions		Divestiture		Other		Currency Translation Adjustment		Ending Balance
Metal Coatings	$	116,691	$	39,419	$	—	$	1,413	$	(475)	$	157,048
Infrastructure Solutions	207,065		—		(7,888)		—		—		199,177
Total	$	323,756	$	39,419	$	(7,888)	$	1,413	$	(475)	$	356,225

Goodwill is evaluated for impairment on at least an annual basis, or more frequently if indicators of impairment exist. The impairment tests are based on Level 3 fair value inputs. Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

During fiscal 2021 and 2020, the Company continued to execute its strategy to divest of non-core businesses, which included the divestiture of most of its business that served customers in the nuclear power businesses in fiscal 2020. In addition, the Company divested two businesses and classified one other business as held-for-sale in fiscal 2021. In connection with these activities, the Company allocated goodwill to the businesses disposed of or held for sale based on the relative fair value of those businesses in the reporting unit to which the goodwill applied. The determination of the amount of goodwill to allocate to the disposal group as opposed to the ongoing operations required significant management judgment regarding future cash flows, discount rates and other market relevant data.

In February 2020, the Company completed the sale of its nuclear logistics business reported within its Infrastructure Solutions segment. The Company allocated $7.9 million of goodwill to this business, which was written off upon the completion of the sale. The estimate of goodwill to allocate to the disposal group required significant management judgment regarding future cash flows, discount rates and other market relevant data. See Note 13 for more information.

The Company completed its fiscal 2021 annual goodwill impairment analysis as of December 31, 2020 and concluded that no indicators of impairment existed at any of its reporting units as of the testing date.

Amortizable intangible assets consisted of the following as of February 28, 2021 and February 29, 2020 (in thousands):


	Weighted-Average Life (Years)	2021		2020
Customer related intangibles	16	$	171,091	$	177,090
Non-compete agreements	13	8,803		8,659
Trademarks	99	1,386		1,469
Technology	25	2,554		2,554
Certifications	8	399		—


Gross intangible assets		184,233		189,772
Less accumulated amortization		(100,342)		(91,298)
Total amortizable intangible assets, net		$	83,891	$	98,474

The following table outlines the classification of amortization expense in the statements of income for fiscal 2021, 2020, and 2019 (in thousands):


	2021		2020		2019
Cost of sales	$	6,838	$	6,873	$	6,259
Selling, general and administrative	5,561		10,251		10,775
Total amortization expense	$	12,399	$	17,124	$	17,034

In addition, for fiscal 2020, intangibles with a carrying value of approximately $14.6 million were written-off as part of the sale of the nuclear logistics business and intangibles with a carrying value of approximately $7.2 million were impaired as part of the exit from the nuclear certified portion of the industrial welding solutions business. See Note 13 for more information.

In addition to its amortizable intangible assets, the Company has recorded indefinite-lived intangible assets of $3.4 million on the consolidated balance sheets as of February 28, 2021 and February 29, 2020, related to certain tradenames acquired as part of prior business acquisitions. These indefinite-lived intangible assets are not amortized, but are assessed for impairment annually or whenever an impairment may be indicated. During fiscal 2021 and 2020, the Company performed an annual review of its indefinite-lived intangibles and no impairment was indicated.

The following summarizes the estimated amortization expense for the next five fiscal years and beyond (in thousands):


2022	$	12,111
2023	11,735
2024	9,907
2025	9,098
2026	9,069
Thereafter	31,971
Total	$	83,891