Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes to the carrying amount of goodwill for the years ended March 31, 2019, 2018 and 2017 were as follows:



	Healthcare Products Segment			Healthcare Specialty Services Segment			Life Sciences Segment			Applied Sterilization Technologies Segment			Total
Balance at March 31, 2017	377,765			375,879			146,514			1,331,145			2,231,303
Goodwill acquired or allocated	16,418			3,501			—			15,847			35,766
Reassignment	—			(1,855		)	—			1,855			—
Foreign currency translation adjustments	10,491			10,500			2,302			143,422			166,715
Balance at March 31, 2018	$	404,674		$	388,025		$	148,816		$	1,492,269		$	2,433,784
Goodwill acquired or allocated	(1,202		)	(907		)	—			5,341			3,232
Foreign currency translation adjustments	(6,188		)	(12,208		)	(1,021		)	(94,671		)	(114,088		)
Balance at March 31, 2019	$	397,284		$	374,910		$	147,795		$	1,402,939		$	2,322,928

The fiscal 2018 goodwill increase was due to our recent business acquisitions, which are discussed in Note 18, titled "Business Acquisitions" and the impact of foreign currency. The fiscal 2018 reassignment between the Healthcare Specialty Services and the Applied Sterilization Technologies segments resulted from certain minor organizational changes that were made to better align with our Customers.

We evaluate the recoverability of recorded goodwill amounts annually during the third fiscal quarter, or when evidence of potential impairment exists. As a result of our annual impairment review for goodwill for fiscal years 2019 and 2018, no indicators of impairment were identified. As a result of our annual goodwill impairment review for fiscal year 2017, we concluded that the carrying value of one of our reporting units exceeded its fair value. The Synergy Health Netherlands linen management unit was reported within our Healthcare Specialty Services segment. Financial forecasts prepared for the annual assessment reflected pricing pressures, volume declines driven by overcapacity in the market, and a decline in the overall market size. These factors resulted in further degradation of the already low operating margin and cash flows of this unit. We incurred a goodwill impairment charge of $58,356 as a result, which is recorded within Goodwill impairment loss in the Consolidated Statements of Income. The fair market value of the reporting unit was determined under an income approach using discounted cash flows and estimated fair market values. Fair value calculated using a discounted cash flow analysis is classified within level 3 of the fair value hierarchy and requires several assumptions including risk adjusted discount rates and financial forecasts.

Our fiscal 2019, 2018, and 2017 acquisitions are described in Note 18 to our consolidated financial statements titled, "Business Acquisitions and Divestitures".

Information regarding our intangible assets is as follows:



	2019				2018
March 31,	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	623,774	$	189,752	$	663,532	$	150,358
Non-compete agreements	4,693		3,945		4,738		3,790
Patents and technology	226,520		126,149		226,318		107,598
Trademarks and tradenames	63,570		38,850		83,509		36,864
Supplier relationships	54,800		10,047		54,800		7,307
Other	—		—		10		10
Total	$	973,357	$	368,743	$	1,032,907	$	305,927

Certain trademarks and tradenames obtained as a result of business combinations are indefinite-lived assets. The approximate carrying value of these assets at March 31, 2019 and March 31, 2018 was $13,000 and $35,266, respectively. We evaluate our indefinite-lived intangible assets annually during the third quarter, or when evidence of potential impairment exists. During the third quarter of fiscal 2019, management adopted a branding strategy that included phasing out the usage of a tradename associated with certain products in the Healthcare Products business segment. As a result, management recorded an impairment charge of $16,249, which is included within the Selling, general, and administrative line of the Consolidated Statements of Income. The remaining fair value of the asset was calculated using an income approach (the relief from royalty method). The remaining fair value was not material and will be amortized over the asset's remaining useful life. Fair value calculated using this approach is classified within Level 3 of the fair value hierarchy and requires several assumptions. No impairment was recognized for the fiscal years 2018 or 2017.

Total amortization expense for finite-lived intangible assets was $98,747, $70,195, and $68,607 for the years ended March 31, 2019, 2018, and 2017, respectively. Based upon the current amount of intangible assets subject to amortization, the amortization expense for each of the five succeeding fiscal years is estimated to be as follows:



	2020		2021		2022		2023		2024
Estimated amortization expense	$	71,917	$	66,716	$	63,853	$	58,412	$	52,452

The estimated annual amortization expense presented in the preceding table has been calculated based upon March 31, 2019 currency exchange rates.