XML 24 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Goodwill and Other Intangible Assets
12 Months Ended
May 31, 2017
Goodwill and Other Intangible Assets

2. Goodwill and Other Intangible Assets

Management has completed the annual impairment analysis of goodwill and intangible assets with indefinite lives using a quantitative assessment as of the first day of the fourth quarter of fiscal years 2017, 2016 and 2015, respectively, and determined that recorded amounts were not impaired and that no write-down was necessary.

The following table summarizes goodwill by reportable segment:

 

(in thousands)    Food Safety      Animal Safety      Total  

Balance, May 31, 2015

   $ 18,806      $ 51,313      $ 70,119  

Goodwill acquired and/or adjusted

     8,083        10,304        18,387  
  

 

 

    

 

 

    

 

 

 

Balance, May 31, 2016

   $ 26,889      $ 61,617      $ 88,506  

Goodwill acquired and/or adjusted (1)

     19,031        (2,778      16,253  
  

 

 

    

 

 

    

 

 

 

Balance, May 31, 2017

   $ 45,920      $ 58,839      $ 104,759  
  

 

 

    

 

 

    

 

 

 

 

(1) Represents final purchase price allocation adjustment

At May 31, 2017, non-amortizable intangible assets included licenses of $569,000, trademarks of $12,530,000 and other intangibles of $1,224,000. At May 31, 2016, non-amortizable intangible assets included licenses of $569,000, trademarks of $7,377,000 and other intangibles of $1,224,000.

Amortizable intangible assets consisted of the following and are included in customer-based intangible and other non-current assets within the consolidated balance sheets:

 

(in thousands)    Gross
Carrying
Amount
     Less
Accumulated
Amortization
     Net
Carrying
Amount
 

Licenses

   $ 5,989      $ 2,011      $ 3,978  

Covenants not to compete

     1,208        309        899  

Patents

     9,304        4,601        4,703  

Customer-based intangibles

     56,829        20,846        35,983  

Other products and service-related intangibles

     12,065        3,010        9,055  
  

 

 

    

 

 

    

 

 

 

Balance, May 31, 2017

   $ 85,395      $ 30,777      $ 54,618  
  

 

 

    

 

 

    

 

 

 

Licenses

   $ 5,189      $ 1,782      $ 3,407  

Covenants not to compete

     491        193        298  

Patents

     8,040        3,631        4,409  

Customer-based intangibles

     48,186        17,277        30,909  

Other products and service-related intangibles

     12,256        1,924        10,332  
  

 

 

    

 

 

    

 

 

 

Balance, May 31, 2016

   $ 74,162      $ 24,807      $ 49,355  
  

 

 

    

 

 

    

 

 

 

Amortization expense for intangibles totaled $5,908,000, $4,730,000 and $4,331,000 in fiscal years 2017, 2016, and 2015, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $5,951,000 in 2018, $5,558,000 in 2019, $5,253,000 in 2020, $4,977,000 in 2021 and $4,646,000 in 2022. The amortizable intangible assets useful lives are 2 to 20 years for licenses, 5 to 13 years for covenants not to compete, 5 to 25 years for patents, 5 to 20 years for customer-based intangibles and 2 to 20 years for other product and service-related intangibles, which primarily consist of product formulations. All definite-lived intangibles are amortized on a straight line basis with the exception of definite-lived customer-based intangibles and product and service-related intangibles, which are amortized on an accelerated basis.