Goodwill and Intangible Assets

9 Months Ended

Feb. 28, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Intangible assets other than goodwill are amortized over their estimated useful lives on either a straight-line basis or proportionately to the benefit being realized. Useful lives range from two to eighteen years. The Company periodically reviews the estimated useful lives of its intangible assets and reviews such assets or asset groups for impairment whenever events or changes in circumstances indicate that the carrying value of the assets or asset groups may not be recoverable. If an intangible asset or asset group is considered to be impaired, the amount of the impairment will equal the excess of the carrying value over the fair value of the asset.

Goodwill is not amortized, but rather, is tested for impairment annually or more frequently if impairment indicators arise. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.

The Company's annual testing for impairment of goodwill was completed as of December 31, 2020. The Company operates as a single operating segment with one reporting unit and consequently evaluates goodwill for impairment based on an evaluation of the fair value of the Company as a whole. The Company determines the fair value of the reporting unit based on the market valuation approach and concluded that it was not more-likely-than-not that the fair value of the Company's reporting unit was less than its carrying value.

Even though the Company determined that there was no goodwill impairment as of December 31, 2020, the future occurrence of a potential indicator of impairment, such as a significant adverse change in legal, regulatory, business or economic conditions or a more-likely-than-not expectation that the reporting unit or a significant portion of the reporting unit will be sold or disposed of, would require an interim assessment for the reporting unit prior to the next required annual assessment as of December 31, 2021.

There were no adjustments to goodwill for the nine months ended February 28, 2021 other than foreign currency translation adjustments.

Intangible assets consisted of the following:


	Feb 28, 2021
(in thousands)	Gross carrying value		Accumulated amortization		Net carrying value
Product technologies	$	254,675	$	(99,066)	$	155,609
Customer relationships	60,273		(33,142)		27,131
Trademarks	10,150		(6,931)		3,219
Licenses	6,087		(5,830)		257


	$	331,185	$	(144,969)	$	186,216


	May 31, 2020
(in thousands)	Gross carrying value		Accumulated amortization		Net carrying value
Product technologies	$	251,569	$	(88,547)	$	163,022
Customer relationships	60,160		(30,018)		30,142
Trademarks	10,150		(6,691)		3,459
Licenses	6,087		(5,574)		513


	$	327,966	$	(130,830)	$	197,136

Amortization expense for the three months ended February 28, 2021 and February 29, 2020 was $4.3 million and $5.0 million, respectively. Amortization expense for the nine months ended February 28, 2021 and February 29, 2020 was $13.8 million and $13.4 million, respectively.

Expected future amortization expense related to the intangible assets for each of the following fiscal years is as follows:


(in thousands)
Remainder of 2021	$	4,223
2022	17,013
2023	17,453
2024	15,943
2025	16,951
2026 and thereafter	114,633
	$	186,216