Goodwill, Other Intangible Assets and Long-Lived Assets

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL, OTHER INTANGIBLE ASSETS AND LONG-LIVED ASSETS

The following table shows changes in goodwill for the fiscal year ended March 31, 2016 and 2017 (in thousands):



Balance as of March 31, 2015	$	15,820
Acquisition of Blumenthal	4,075
Increase in goodwill - Hollywood Ribbon	79
Balance as of March 31, 2016	19,974
Decrease in goodwill - Blumenthal	(58		)
Balance as of March 31, 2017	$	19,916

The change in the gross carrying amount of other intangible assets for the year ended March 31, 2016 and 2017 is as follows (in thousands):



	Tradenames and Trademarks		Customer Relationships
Balance as of March 31, 2015	$	12,953	$	29,957
Acquisition of Blumenthal	2,600		9,200
Balance as of March 31, 2016	15,553		39,157
Acquisition of McCall	4,400		—
Acquisition of Schiff	—		500
Purchase of customer lists	—		100
Balance as of March 31, 2017	$	19,953	$	39,757

With the acquisition of the McCall business, the Company recorded intangible assets relating to tradenames that are not subject to amortization in the amount of $4,400,000. Additionally, the Company recorded customer lists of $500,000 with the acquisition of the Schiff business that are being amortized over five years and customer lists of $100,000 purchased from a third party which are being amortized over two years.

The gross carrying amount and accumulated amortization of other intangible assets as of March 31, 2017 and 2016 is as follows (in thousands):



	March 31, 2017				March 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Tradenames and trademarks	$	19,953	$	—	$	15,553	$	—
Customer relationships	39,757		16,495		39,157		13,444
Patents	1,164		825		1,164		708
Trademarks	403		363		403		333
Covenants not to compete	530		245		530		139
	$	61,807	$	17,928	$	56,807	$	14,624

The weighted-average amortization period of customer relationships, patents, trademarks and covenants not to compete are 13 years, 10 years, 10 years, and 5 years, respectively.

Amortization expense was $3,304,000 for fiscal 2017, $2,665,000 for fiscal 2016, and $1,851,000 for fiscal 2015. The estimated amortization expense for the next five fiscal years is as follows (in thousands):



2018	$	3,362
2019	3,305
2020	3,244
2021	3,056
2022	2,960

In the fourth quarter of fiscal 2017, 2016 and 2015, the Company performed the required annual impairment test of the carrying amount of goodwill and indefinite lived intangibles and determined that no impairment existed.

The Company assesses the impairment of long-lived assets, including identifiable intangible assets subject to amortization and property and plant and equipment, whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors the Company considers important that could trigger an impairment review include significant changes in the use of any assets, changes in historical trends in operating performance, changes in projected operating performance, stock price, loss of a major customer, failure to pass step one of the goodwill impairment test and significant negative economic trends. In connection with the Company’s review of the recoverability of its long-lived assets, the Company determined that no impairment existed in fiscal 2017, 2016 and 2015.

- 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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