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Goodwill and Intangible Assets
6 Months Ended
Nov. 30, 2012
Goodwill and Intangible Assets [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE D – GOODWILL AND INTANGIBLE ASSETS

As previously discussed, effective June 1, 2012 we implemented a change to our internal reporting structure and we now view the business as one operating segment. In connection with this change, we have also re-assessed our reporting units in accordance with ASC 350 and have determined that, effective June 1, 2012 we have one reporting unit for goodwill impairment testing purpose. We have considered these internal structural changes and their potential impact as it relates to testing goodwill for impairment. We have assessed these changes from a qualitative perspective in determining whether it is more likely than not that the fair value of our single reporting unit is less than its carrying value as a basis for determining whether it is necessary for us to perform a two-step goodwill impairment test. Based on our qualitative assessment, we have determined that it is not more likely than not that the fair value of our reporting unit is less than its carrying value and therefore, goodwill is not impaired.

Changes in the carrying amount of goodwill for the six months ended November 30, 2012 are as follows (in thousands):

 

         

Balance, May 31, 2012

  $  308,912  

Adjustments to purchase price

    (1,741

Goodwill acquired from Vortex

    30,019  
   

 

 

 

Balance, November 30, 2012

  $ 337,190  
   

 

 

 

The above $1.7 million reduction in the carrying value of goodwill is the result of an $858,000 payment from Avista Capital Partners and an $883,000 increase in the value of deferred tax assets from the Navilyst acquisition.

The balances of intangible assets are as follows:

 

                                 
    November 30,2012  
    Gross carrying
value
    Accumulated
amortization
    Net carrying
value
    Weighted
avg useful
life
 
          (in thousands)           (years)  

Product technologies

  $ 140,324     $ (21,949   $ 118,375       13.3  

Customer relationships

    82,216       (26,344     55,872       14.8  

Trademark-NAMIC

    28,600       —         28,600       Indefinite  

In-process R&D acquired

    3,000       —         3,000       Indefinite  

Licenses

    6,302       (4,093     2,209       8.8  

Trademarks

    4,575       (568     4,007       9.9  

Distributor relationships

    1,140       (900     240       2.6  
   

 

 

   

 

 

   

 

 

         
    $ 266,157     $ (53,854   $ 212,303          
   

 

 

   

 

 

   

 

 

         

 

                                 
    May 31, 2012  
    Gross
carrying
value
    Accumulated
amortization
    Net
carrying
value
    Weighted
avg useful
life
 
          (in thousands)           (years)  

Customer relationships

  $ 82,205     $ (22,123   $ 60,082       11.7  

Product technologies

    55,540       (18,839     36,701       11.3  

Trademark-NAMIC

    28,600       —         28,600       Indefinite  

In-process R&D acquired

    15,042       —         15,042       Indefinite  

Licenses

    6,152       (3,711     2,441       9.1  

Trademarks

    4,575       (375     4,200       7.3  

Distributor relationships

    1,140       (940     200       2.6  
   

 

 

   

 

 

   

 

 

         
    $ 193,254     $ (45,988   $ 147,266