Goodwill and Other Intangible Assets

3 Months Ended

May 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Other Intangible Assets

Beginning March 1, 2017, given the general declining trend line of print sales, and its expected continuance into the foreseeable future, the Company elected to treat the recorded value of trademarks/trade names as no longer being an indefinite-lived asset. As such, as of March 1, 2017, the Company began amortizing the carrying value of these assets over their estimated remaining useful life, approximately 17—19 years. The amortization expense associated with this election (a non-cash charge) is expected to impact the Company’s selling, general and administrative expense line by approximately $830,000 during fiscal year 2018.

The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands):


As of May 31, 2017	Weighted Average Remaining Life *(in years)*		Gross Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets
Trademarks and trade names		16.8	$	18,933	$	1,516	$	17,417
Customer lists		8.7		57,347		22,532		34,815
Noncompete		0.6		175		100		75
Patent		0.8		783		688		95

Total		11.4	$	77,238	$	24,836	$	52,402


As of February 28, 2017
Amortized intangible assets
Trademarks and trade names		8.0	$	3,642	$	1,234	$	2,408
Customer lists		8.9		57,347		21,336		36,011
Noncompete		0.8		175		86		89
Patent		1.0		783		655		128

Total		8.8	$	61,947	$	23,311	$	38,636


	May 31, 2017		February 28, 2017
Non-amortizing intangible assets Trademarks and trade names	$	—	$	15,291

Aggregate amortization expense for the three months ended May 31, 2017 and May 31, 2016 was $1.5 million and $1.2 million, respectively.

The Company’s estimated amortization expense for the next five fiscal years ending in February of the stated fiscal year is as follows (in thousands):


2018	$	5,888
2019		5,402
2020		5,320
2021		5,250
2022		5,207

Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands):


Balance as of March 1, 2016	$	64,537
Goodwill acquired		6,066
Goodwill impairment		—

Balance as of February 28, 2017		70,603
Goodwill acquired		—
Goodwill impairment		—

Balance as of May 31, 2017	$	70,603

During the fiscal year ended February 28, 2017, $6.1 million was added to goodwill related to the acquisition of Independent.

- 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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