v3.7.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets

Other Intangible Assets

Information regarding the Company’s other intangible assets are as follows:

 
 
March 31,
 
 
2017
 
2016
 
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
$
96,849

 
$
(953
)
 
$
95,896

 
$
98,245

 
$
(953
)
 
$
97,292

Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
66,187

 
(24,936
)
 
41,251

 
65,963

 
(18,485
)
 
47,478

Non-compete
 
2,846

 
(2,701
)
 
145

 
2,856

 
(2,457
)
 
399

Technology
 
22,549

 
(7,168
)
 
15,381

 
18,494

 
(5,423
)
 
13,071

Trademarks
 
2,003

 
(1,066
)
 
937

 
2,004

 
(983
)
 
1,021

Licenses
 
1,474

 
(1,124
)
 
350

 
1,487

 
(1,090
)
 
397

Total
 
$
191,908

 
$
(37,948
)
 
$
153,960

 
$
189,049

 
$
(29,391
)
 
$
159,658



The Company’s amortization expense related to finite-lived intangible assets was $8,557, $8,308, and $7,779, for the years ended March 31, 2017, 2016 and 2015, respectively. The expected amortization expense based on the finite-lived intangible
assets as of March 31, 2017, is $8,244 in fiscal 2018, $8,206 in fiscal 2019, $8,063 in fiscal 2020, $7,813 in fiscal 2021 and $7,622 in fiscal 2022.

Goodwill

The changes in the carrying amount of goodwill by reportable segment are as follows:

 
 
Fiscal year ended March 31, 2017
 
 
Americas
 
EMEA
 
Asia
 
Total
Balance at beginning of year
 
$
166,197

 
$
141,392

 
$
45,958

 
$
353,547

Reorganization of reporting structure
 
(11,628
)
 
11,628

 
—

 
—

Goodwill acquired during the year, including purchase accounting adjustments
 
1,962

 
—

 
(840
)
 
1,122

Goodwill impairment charge
 
(8,646
)
 
(3,570
)
 
—

 
(12,216
)
Foreign currency translation adjustment
 
(903
)
 
(10,637
)
 
(2,256
)
 
(13,796
)
Balance at end of year
 
$
146,982

 
$
138,813

 
$
42,862

 
$
328,657


 
 
Fiscal year ended March 31, 2016
 
 
Americas
 
EMEA
 
Asia
 
Total
Balance at beginning of year
 
$
190,321

 
$
146,962

 
$
32,447

 
$
369,730

Reorganization of reporting structure
 
6,712

 
(6,712
)
 
—

 
—

Goodwill acquired during the year
 
497

 
—

 
13,898

 
14,395

Goodwill impairment charge
 
(29,578
)
 
(1,833
)
 
—

 
(31,411
)
Foreign currency translation adjustment
 
(1,755
)
 
2,975

 
(387
)
 
833

Balance at end of year
 
$
166,197

 
$
141,392

 
$
45,958

 
$
353,547



A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:

 
 
March 31, 2017
 
 
Americas
 
EMEA
 
Asia
 
Total
Gross carrying value
 
$
204,827

 
$
144,966

 
$
48,041

 
$
397,834

Accumulated goodwill impairment charges
 
(57,845
)
 
(6,153
)
 
(5,179
)
 
(69,177
)
Net book value
 
$
146,982

 
$
138,813

 
$
42,862

 
$
328,657


 
 
March 31, 2016
 
 
Americas
 
EMEA
 
Asia
 
Total
Gross carrying value
 
$
215,396

 
$
143,975

 
$
51,137

 
$
410,508

Accumulated goodwill impairment charges
 
(49,199
)
 
(2,583
)
 
(5,179
)
 
(56,961
)
Net book value
 
$
166,197

 
$
141,392

 
$
45,958

 
$
353,547



Impairment of goodwill, indefinite-lived intangibles and fixed assets

As mentioned in Note 1, Summary of Significant Accounting Policies, the Company early adopted ASU 2017-04, which eliminated Step 2 from the goodwill impairment test. In the fourth quarter of fiscal 2017, the Company conducted step one of the annual goodwill impairment test which indicated that the fair values of two of its reporting units - Purcell US in the Americas and Purcell EMEA in the EMEA operating segment - were less than their respective carrying values. Based on the guidance in ASU 2017-04, the Company recognized an impairment charge for the amount by which the carrying amount exceeded the reporting unit’s fair value.

The Company recorded a non-cash charge of $8,646 and $3,570, related to goodwill impairment in the Americas and EMEA operating segments, respectively, and $700 and $1,100 related to impairment of indefinite-lived trademarks in the Americas and
EMEA operating segments, respectively, for an aggregate charge of $14,016, under the caption “Impairment of goodwill, indefinite-lived intangibles and fixed assets” in the Consolidated Statements of Income.

Purcell was acquired in fiscal 2014 during the height of the 4G telecom build-out. After performing to expectation for the first few quarters, its revenue slumped as telecom spending in the U.S. curtailed sharply. In both fiscal 2015 and 2016, lower estimated projected revenue and profitability in the near term caused by reduced levels of capital spending by major customers in the telecommunications industry was a key factor contributing to the impairment charges recorded in those years. In fiscal 2017, the company transferred the European operations of Purcell to its EMEA operating segment, consistent with its geographical management approach. In the U.S., Purcell recently received significant orders, but at lower margins than recent years, resulting in an impairment in 2017. In Europe, Purcell's sales forecasts were reduced as a result of low telecom spending and accordingly recorded an impairment charge as well.

In fiscal 2016, the Company recorded a non-cash charge of $31,411 related to goodwill impairment in the Americas and EMEA operating segments, $3,420 related to impairment of indefinite-lived trademarks in the Americas and $1,421 related to impairment of fixed assets in the EMEA operating segment for an aggregate charge of $36,252.

In fiscal 2015, the Company recorded a non-cash charge of $20,371 related to goodwill impairment in the Americas and EMEA operating segments and $3,575 related to impairment of indefinite-lived trademarks in the Americas for an aggregate charge of $23,946.

The Company estimated tax-deductible goodwill to be approximately $19,857 and $20,766 as of March 31, 2017 and 2016, respectively.