XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.1
Goodwill and Intangible Assets
 9 Months Ended
Feb. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS

Intangible assets other than goodwill are amortized over their estimated useful lives on either a straight-line basis or proportionately to the benefit being realized. Useful lives range from two to eighteen years. The Company periodically reviews the estimated useful lives of its intangible assets and reviews such assets or asset groups for impairment whenever events or changes in circumstances indicate that the carrying value of the assets or asset groups may not be recoverable. If an intangible asset or asset group is considered to be impaired, the amount of the impairment will equal the excess of the carrying value over the fair value of the asset.

Goodwill is not amortized, but rather, is tested for impairment annually or more frequently if impairment indicators arise. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.

The Company's annual testing for impairment of goodwill was completed as of December 31, 2018. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company determines the fair value of the reporting unit based on the market valuation approach and concluded that it was not more-likely-than-not that the fair value of the Company's reporting unit was less than its carrying value.

Even though the Company determined that there was no goodwill impairment as of December 31, 2018, the future occurrence of a potential indicator of impairment, such as a significant adverse change in legal, regulatory, business or economic conditions or a more-likely-than-not expectation that the reporting unit or a significant portion of the reporting unit will be sold or disposed of, would require an interim assessment for the reporting unit prior to the next required annual
assessment as of December 31, 2019. The Company continued to assess for potential impairment through February 28, 2019 and noted no events that would be considered a triggering event.

The changes in the carrying amount of goodwill for the nine months ended February 28, 2019 were as follows:

(in thousands)
 
Goodwill balance at May 31, 2018
$
361,252

Additions for BioSentry acquisition (Note 2)
14,140

Additions for RadiaDyne acquisition (Note 2)
48,282

Goodwill balance at February 28, 2019
$
423,674


Intangible assets consisted of the following:
 
Feb 28, 2019
 
Gross
carrying
value
 
Accumulated
amortization
 
Net carrying
value
(in thousands)
 
 
 
 
 
Product technologies
$
188,475

 
$
(77,772
)
 
$
110,703

Customer relationships
62,890

 
(26,363
)
 
36,527

Trademarks
31,500

 
(13,752
)
 
17,748

Licenses
5,752

 
(4,867
)
 
885

Distributor relationships
1,250

 
(549
)
 
701

 
$
289,867

 
$
(123,303
)
 
$
166,564

 
May 31, 2018
 
Gross
carrying
value
 
Accumulated
amortization
 
Net carrying
value
(in thousands)
 
 
 
 
 
Product technologies
$
147,175

 
$
(68,880
)
 
$
78,295

Customer relationships
56,428

 
(23,237
)
 
33,191

Trademarks
28,400

 
(11,809
)
 
16,591

Licenses
5,752

 
(4,357
)
 
1,395

Distributor relationships
1,250

 
(412
)
 
838

 
$
239,005

 
$
(108,695
)
 
$
130,310



Amortization expense for the three months ended February 28, 2019 and 2018 was $5.3 million and $4.2 million, respectively. Amortization expense for the nine months ended February 28, 2019 and 2018 was $14.6 million and $12.4 million, respectively.

Expected future amortization expense related to the intangible assets is as follows:
(in thousands)

Remainder of 2019
$
5,168

2020
18,955

2021
17,795

2022
16,910

2023
16,459

2024 and thereafter
91,277


$
166,564