Note 9. Supplementary Information

Impairment Loss (non-cash)

We completed our annual goodwill impairment test as of the first day of the third quarter of Fiscal 2018. In performing the valuation, we used cash flows that reflected management’s forecasts and discount rates that included risk adjustments consistent with the current market conditions. We estimated the fair value of our reporting units using a weighting of fair values derived from the income approach and the market approach. Based on the results of the test, the carrying value of the BNC reporting unit, as defined before the segment change in the fourth quarter of Fiscal 2018, exceeded its fair value and we recorded a goodwill impairment (non-cash impairment loss) of $313,130. For information, see Part I - Item 1. Business and Part II - Item 8. Financial Statements and Supplementary Data - Note 2. Summary of Significant Accounting Policies and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates.

In Fiscal 2016, we implemented a plan to restructure our digital operations. As a result of this restructuring, we recorded a non-cash impairment loss of $11,987 related to all of the capitalized content costs for the Yuzu^®eTextbook platform ($8,987) based on the probability of recoverability of the capitalized content costs, and recorded a non-recurring other than temporary loss related to an investment held at cost ($3,000), whose fair value has been reduced to $0 based on the financial projections of the investment.

Restructuring and Other Charges

Restructuring

Additionally, we announced a reduction in staff and closure of the facilities in Mountain View, California, and Redmond, Washington that support the Yuzu^® eTextbook platform. We recorded restructuring costs of $8,830 in Fiscal 2016 comprised of $3,216 in employee related costs (including severance and retention), facility exit costs of $5,046 and $568 related to specific contracts. We recorded restructuring costs of $1,790 in Fiscal 2017 primarily comprised of employee related costs (including severance and retention). We completed the restructuring in Fiscal 2017.

Other Charges

On July 19, 2017, Mr. Max J. Roberts resigned as Chief Executive Officer of the Company and Mr. Michael P. Huseby was appointed to the position of Chief Executive Officer and Chairman of the Board, both effective as of September 19, 2017. Pursuant to the terms of the Retirement Letter Agreement, Mr. Roberts received an aggregate payment of approximately $4,424, comprised of salary, bonus and benefits. In addition, the Company paid Mr. Roberts and Mr. Huseby a one-time cash transition payment of approximately $562 and $250, respectively, at the time of the transition. During the 52 weeks ended April 28, 2018, we recognized expenses totaling approximately $5,361, which is comprised of the severance and transition payments. For additional information, see the Form 8-K dated July 19, 2017, filed with the SEC on July 20, 2017.

Intangible Assets

For information about additions to the gross carrying amounts of intangible assets, see Part I - Item 1. Business and Part II - Item 8. Financial Statements and Supplementary Data - Note 4. Acquisitions. Amortizable intangible assets as of April 28, 2018 and April 29, 2017 are as follows:



		As of April 28, 2018
Amortizable intangible assets	Remaining Life	Gross Carrying Amount		Accumulated Amortization			Total
Customer relationships	1 - 16	$	272,419	$	(89,767	)	$	182,652
Content	4	14,500		(2,175		)	12,325
Technology	2 - 8	20,100		(4,080		)	16,020
Other ^(a)	1 - 9	10,853		(2,721		)	8,132
		$	317,872	$	(98,743	)	$	219,129


a)	Other consists of recognized intangibles for non-compete agreements, trade names, subscriber lists and favorable leasehold interests.



		As of April 29, 2017
Amortizable intangible assets	Remaining Life	Gross Carrying Amount		Accumulated Amortization			Total
Customer relationships	4 - 17	$	270,619	$	(77,640	)	$	192,979
Technology	3 - 9	12,100		(1,320		)	10,780
Other ^(a)	1 - 10	6,853		(727		)	6,126
		$	289,572	$	(79,687	)	$	209,885


a)	Other consists of recognized intangibles for non-compete agreements, trade names and favorable leasehold interests.

All amortizable intangible assets are being amortized over their useful life on a straight-line basis.



Aggregate Amortization Expense:
For the 52 weeks ended April 28, 2018	$	19,056
For the 52 weeks ended April 29, 2017	$	12,095
For the 52 weeks ended April 30, 2016	$	10,477



Estimated Amortization Expense: (Fiscal Year)
2019	$	20,731
2020	$	19,917
2021	$	18,098
2022	$	17,449
2023	$	14,047
After 2023	$	128,887

Goodwill

The following table details the changes in carrying value of goodwill (including foreign currency translation):



Balance at April 30, 2016	$	280,911
Goodwill related to acquisitions	48,556
Balance at April 29, 2017	$	329,467
Goodwill related to Student Brands acquisition	31,782
Goodwill related to MBS measurement period adjustment	1,163
Impairment loss (non-cash) ^(a)	(313,130		)
Balance at April 29, 2018	$	49,282


(a)	See Impairment Loss (non-cash) discussion above.

For additional information of goodwill by acquisition, see Part I - Item 1. Business and Part II - Item 8. Financial Statements and Supplementary Data - Note 4. Acquisitions. As of April 28, 2018, goodwill of approximately $80,629 was deductible for federal income tax purposes.