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Goodwill and Other Intangible Assets
12 Months Ended
May 31, 2020
Goodwill and Other Intangible Assets
2. Goodwill and Other Intangible Assets
Management 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 2020, 2019 and 2018, 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, 2018
  $
  40,001
    $
  59,557
    $
99,558
 
Goodwill acquired
   
3,796
     
1,196
     
4,992
 
Goodwill and/or currency adjustments (1)
   
(1,244
)    
313
     
(931
)
                         
Balance, May 31, 2019
  $
42,553
    $
61,066
    $
103,619
 
Goodwill acquired
   
6,254
     
2,095
     
8,349
 
Goodwill and/or currency adjustments
 
(1)
   
(1,592
)    
(36
)    
(1,628
)
                         
Balance, May 31, 2020
  $
47,215
    $
63,125
    $
110,340
 
                         
(1)
Includes final purchase price allocation adjustments and currency adjustments for goodwill recorded at international locations.
At May 31, 2020,
non-amortizable
intangible assets included licenses of $569,000, trademarks of $13,424,000 and other intangibles of $1,224,000. At May 31, 2019,
non-amortizable
intangible assets included licenses of $569,000, trademarks of $13,717,000 and other intangibles of $1,224,000.
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
  $
10,346
    $
3,330
    $
7,016
 
Covenants not to compete
   
706
     
407
     
299
 
Patents
   
8,509
     
4,118
     
4,391
 
Customer-based intangibles
   
59,847
     
29,898
     
29,949
 
Other products and service-related intangibles
   
16,646
     
6,937
     
9,709
 
                         
Balance, May 31, 2020
  $
96,054
    $
44,690
    $
51,364
 
                         
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
 
                         
Amortization expense for intangibles totaled $6,489,000, $6,309,000 and $6,743,000 in fiscal years 2020, 2019, and 2018, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $6,573,000 in 2021, $6,445,000 in 2022, $6,006,000 in 2023, $5,700,000 in 2024 and $5,370,000 in 2025. The amortizable intangible assets useful lives are 2 to 20 years for licenses, 3 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.