Goodwill and Intangible Assets

12 Months Ended

Feb. 28, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and indefinite-lived intangible assets are not amortized but are subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives.

Changes in goodwill by segment for fiscal years 2022 and 2021 were as follows (in thousands):


2022
Segment	Beginning Balance		Acquisitions		Divestiture		Other		Currency Translation Adjustment		Ending Balance
Metal Coatings	$	158,659	$	32,389	$	—	$	(477)	$	(180)	$	190,391
Infrastructure Solutions	195,222		—		—		—		—		195,222
Total	$	353,881	$	32,389	$	—	$	(477)	$	(180)	$	385,613


2021
Segment	Beginning Balance		Acquisitions		Divestiture		Other		Currency Translation Adjustment		Ending Balance
Metal Coatings	$	157,048	$	1,551	$	(1,132)	$	—	$	1,192	$	158,659
Infrastructure Solutions	199,177		—		(2,262)		(1,693)		—		195,222
Total	$	356,225	$	1,551	$	(3,394)	$	(1,693)	$	1,192	$	353,881

Goodwill is evaluated for impairment on at least an annual basis, or more frequently if indicators of impairment exist. The impairment tests are based on Level 3 fair value inputs. Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

During fiscal 2021 and 2020, the Company continued to execute its strategy to divest of non-core businesses, which included the divestiture of businesses serving customers in the nuclear power businesses. In connection with these activities, the Company allocated goodwill to the businesses disposed of or held for sale based on the relative fair value of those businesses in the reporting unit to which the goodwill applied. The determination of the amount of goodwill to allocate to the disposal group as opposed to the ongoing operations required significant management judgment regarding future cash flows, discount rates and other market relevant data. During fiscal 2022, the Company made changes to a plan of sale for a business that was previously held for sale in the Infrastructure Solutions segment. The Company had previously recognized the impact of the impairment in the prior year related to this business. This business was reclassified from assets held for sale into assets held and used during fiscal 2022. See Note 13 for more information.

In February 2020, the Company completed the sale of its nuclear logistics business reported within its Infrastructure Solutions segment. The Company allocated $7.9 million of goodwill to this business, which was written off upon the completion of the sale. The estimate of goodwill to allocate to the disposal group required significant management judgment regarding future cash flows, discount rates and other market relevant data. See Note 13 for more information.

The Company completed its fiscal 2022 annual goodwill impairment analysis as of December 31, 2021 and concluded that no impairment existed at any of its reporting units as of the testing date.

Amortizable intangible assets consisted of the following as of February 28, 2022 and February 28, 2021 (in thousands):


	Weighted-Average Life (Years)	2022		2021
Customer related intangibles	15	$	149,796	$	145,782
Non-compete agreements	12	7,903		8,803
Trademarks	21.0	23,303		26,695
Technology	25.0	2,554		2,554
Certifications	8	408		399


Gross intangible assets		183,964		184,233
Less accumulated amortization		(111,638)		(100,342)
Total amortizable intangible assets, net		$	72,326	$	83,891

The following table outlines the classification of amortization expense in the statements of income for fiscal 2022, 2021, and 2020 (in thousands):


	2022		2021		2020
Cost of sales	$	6,658	$	6,838	$	6,873
Selling, general and administrative	5,646		5,562		10,251
Total amortization expense	$	12,304	$	12,400	$	17,124

In addition, for fiscal 2020, intangibles with a net carrying value of approximately $14.6 million were written-off as part of the sale of the nuclear logistics business and nuclear-related intangibles with a carrying value of approximately $7.2 million were impaired as part of the exit from the nuclear certified portion of the industrial welding solutions business. See Note 13 for more information.

In addition to its amortizable intangible assets, the Company has recorded indefinite-lived intangible assets of $3.4 million on the consolidated balance sheets as of February 28, 2022 and February 28, 2021, related to certain tradenames acquired as part of prior business acquisitions. These indefinite-lived intangible assets are not amortized, but are assessed for impairment annually or whenever an impairment may be indicated. During fiscal 2022 and 2021, the Company performed an annual review of its indefinite-lived intangibles and no impairment was indicated.

The following summarizes the estimated amortization expense for the next five fiscal years and beyond (in thousands):



2023	$	11,741
2024	9,913
2025	9,104
2026	9,075
2027	8,808
Thereafter	23,685
Total	$	72,326