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Goodwill and Other Intangible Assets
12 Months Ended
May 31, 2022
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
qualitative
assessment as of the first day of the fourth quarter of fiscal years 2022, 2021 and 2020, 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, 2020
   $ 47,215      $ 63,125      $ 110,340  
Goodwill acquired
     18,775        —          18,775  
Goodwill and/or currency adjustments (1)
     1,832        529        2,361  
    
 
 
    
 
 
    
 
 
 
Balance, May 31, 2021
   $ 67,822      $ 63,654      $ 131,476  
    
 
 
    
 
 
    
 
 
 
Goodwill acquired
     4,152        11,752        15,904  
Goodwill and/or currency adjustments (1)
     (4,416      (260      (4,676
    
 
 
    
 
 
    
 
 
 
Balance, May 31, 2022
   $ 67,558      $ 75,146      $ 142,704  
    
 
 
    
 
 
    
 
 
 
 
(1)
Includes final purchase price allocation adjustments and currency adjustments for goodwill recorded at international locations.
 
At May 31, 2022, non-amortizable intangible assets included licenses of $569,000, trademarks of $13,604,000 and other intangibles of $1,224,000. At May 31, 2021, non-amortizable intangible assets included licenses of $569,000, trademarks of $13,752,000 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:

 
  
Gross
 
  
Less
 
  
Net
 
 
  
Carrying
 
  
Accumulated
 
  
Carrying
 
(in thousands)
  
Amount
 
  
Amortization
 
  
Amount
 
Licenses
  
$

17,109     
$

5,682      $ 11,427  
Covenants not to compete
     846        671        175  
Patents
     8,347        4,583        3,764  
Customer-based intangibles
     75,000        33,662        41,338  
Other product and service-related intangibles
     46,220        10,818        35,402  
    
 
 
    
 
 
    
 
 
 
Balance, May 31, 2022
   $ 147,522      $ 55,416      $ 92,106  
    
 
 
    
 
 
    
 
 
 
Licenses
   $ 16,913      $ 4,580      $ 12,333  
Covenants not to compete
     1,006        571        435  
Patents
     8,363        4,243        4,120  
Customer-based intangibles
     76,384        35,209        41,175  
Other product and service-related intangibles
     27,567        8,859        18,708  
    
 
 
    
 
 
    
 
 
 
Balance, May 31, 2021
   $ 130,233      $ 53,462      $ 76,771  
    
 
 
    
 
 
    
 
 
 
Amortization expense for intangibles totaled $9,600,000, $7,753,000 and $6,489,000 in fiscal years 2022, 2021, and 2020, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $9,634,000 in 2023, $9,189,000 in 2024, $8,686,000 in 2025, $8,585,000 in 2026 and $8,097,000 in 2027
 and $47,915,000 thereafter.
The amortizable intangible assets useful lives are 2 to 20 years for licenses, 3 to 10 years for covenants not to compete, 5 to 25 years for patents, 9 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
.