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Goodwill and Other Intangible Assets
12 Months Ended
May 31, 2019
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 2019, 2018 and 2017, respectively, and determined that recorded amounts were not considered 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, 2017
 
$
45,920
 
 
$
58,839
 
 
$
104,759
 
Goodwill acquired
 
 
 
 
 
757
 
 
 
757
 
Goodwill adjustments and/or currency (1)
 
 
(5,919
)
 
 
(39
)
 
 
(5,958
)
Balance, May 31, 2018
 
$
40,001
 
 
$
59,557
 
 
$
99,558
 
Goodwill acquired
 
 
3,796
 
 
 
1,196
 
 
 
4,992
 
Goodwill adjustments and/or currency (1)
 
 
(1,244
)
 
 
313
 
 
 
(931
)
Balance, May 31, 2019
 
$
42,553
 
 
$
61,066
 
 
$
103,619
 
 
(1)
Includes final purchase price allocation adjustment.
At May 31, 2019, non-amortizable intangible assets included licenses of $569,000, trademarks of $13,717,000 and other intangibles of $1,363,000. At May 31, 2018, non-amortizable intangible assets included licenses of $
569
,000, trademarks of $
12,989
,000 and other intangibles of $
1,380
,000.
Amortizable intangible assets consisted of the following and are included in customer-based intangibles and other non-current assets within the consolidated balance sheets:
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
Gross

Carrying

Amount
 
 
Less

Accumulated

Amortization
 
 
Net

Carrying

Amount
 
Licenses
 
$
9,813
 
 
$
3,182
 
 
$
6,631
 
Covenants not to compete
 
 
862
 
 
 
542
 
 
 
320
 
Patents
 
 
8,158
 
 
 
3,570
 
 
 
4,588
 
Customer-based intangibles
 
 
57,634
 
 
 
28,017
 
 
 
29,617
 
Other products and service-related intangibles
 
 
16,464
 
 
 
5,524
 
 
 
10,940
 
Balance, May 31, 2019
 
$
92,931
 
 
$
40,835
 
 
$
52,096
 
Licenses
 
$
9,491
 
 
$
2,523
 
 
$
6,968
 
Covenants not to compete
 
 
801
 
 
 
483
 
 
 
318
 
Patents
 
 
9,693
 
 
 
5,013
 
 
 
4,680
 
Customer-based intangibles
 
 
56,420
 
 
 
24,579
 
 
 
31,841
 
Other products and service-related intangibles
 
 
15,299
 
 
 
4,451
 
 
 
10,848
 
Balance, May 31, 2018
 
$
91,704
 
 
$
37,049
 
 
$
54,655
 
Amortization expense for intangibles totaled $6,309,000, $6,743,000 and $5,908,000 in fiscal years 2019, 2018, and 2017, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $6,664,000 in 2020, $6,025,000 in 2021, $5,673,000 in 2022, $5,299,000 in 2023 and $4,989,000 in 2024. 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 5 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 either a straight-line or an accelerated basis.