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.

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration