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Note 8 - Goodwill and Long-lived Assets | 12 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8 . Goodwill and Long-Lived Assets Goodwill arises from the purchase price for acquired businesses exceeding the fair value of tangible and intangible assets acquired, less assumed liabilities. We assess the goodwill of each of our reporting units for impairment at least annually during the fourth quarter of our fiscal year and as triggering events occur that indicate that it is more likely than not that an impairment exists. We begin by performing the qualitative goodwill assessment, and if the results of that test indicate a possible impairment in any of our reportable units, then we perform a quantitative goodwill impairment test on the reporting unit. When we perform a quantitative impairment test, we estimate the fair value of the reporting unit using the income approach. Under the income approach, fair value is estimated as the present value of estimated future cash flows of each reporting unit. The projected cash flows incorporate various assumptions related to weighted average cost of capital, growth rates specific to the reporting unit, assumptions for net sales growth, and terminal growth rates. In conjunction with our exit from the Cold Chain Packaging business, we impaired $296 of remaining goodwill and long-lived assets pertaining to the reporting unit during the year ended March 31, 2020. During the year ended March 31, 2019, we determined that the long-lived assets and goodwill associated with our Cold Chain Packaging reporting segment were impaired and we recognized a non-cash impairment charge of $1,075 on goodwill, $3,378 on long-lived intangible assets, and $229 on property plant and equipment, which is recorded in impairment loss on goodwill and long-lived assets on the accompanying Consolidated Statements of Operations. The impairment was triggered by the reportable segment having financial results that fell short of expectations due to rising commodity costs of the segment's principal raw materials, which eroded gross margins, as well as the division's largest customer giving notice that it was terminating its contract with us. The goodwill activity related to that business is now presented in Corporate and Other. The change in the carrying amount of goodwill was as follows:
|  | Sterilization and Disinfection Control |  |  | Instruments |  |  | Biopharmaceutical Development |  |  | Continuous Monitoring |  |  | Corporate and Other |  |  | Total |
March 31, 2018 |  | $ | 30,503 |  |  | $ | 18,235 |  |  | $ | -- |  |  | $ | 15,404 |  |  | $ | 1,401 |  |  | $ | 65,543 |
Effect of foreign currency translation |  |  | (723 | ) |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (67 | ) |  |  | (790 | )
Acquisitions |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | 2,699 |  |  |  | -- |  |  |  | 2,699 |
Impairment |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (1,075 | ) |  |  | (1,075 | )
March 31, 2019 |  |  | 29,780 |  |  |  | 18,235 |  |  |  | -- |  |  |  | 18,103 |  |  |  | 259 |  |  |  | 66,377 |
Effect of foreign currency translation |  |  | (186 | ) |  |  | (20 | ) |  |  | (2,447 | ) |  |  | -- |  |  |  | (1 | ) |  |  | (2,654 | )
Acquisitions |  |  | -- |  |  |  | 908 |  |  |  | 77,162 |  |  |  | -- |  |  |  | -- |  |  |  | 78,070 |
Impairment |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (258 | ) |  |  | (258 | )
March 31, 2020 |  | $ | 29,594 |  |  | $ | 19,123 |  |  | $ | 74,716 |  |  | $ | 18,103 |  |  | $ | -- |  |  | $ | 141,536 |
Other intangible assets are as follows:
|  | March 31, 2020 |  |  | March 31, 2019 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Intellectual property |  | $ | 15,731 |  |  | $ | (6,454 | ) |  | $ | 9,277 |  |  | $ | 7,690 |  |  | $ | (5,301 | ) |  | $ | 2,389 |
Trade names |  |  | 5,839 |  |  |  | (2,855 | ) |  |  | 2,984 |  |  |  | 3,739 |  |  |  | (2,542 | ) |  |  | 1,197 |
Customer relationships |  |  | 146,106 |  |  |  | (38,777 | ) |  |  | 107,329 |  |  |  | 61,198 |  |  |  | (31,584 | ) |  |  | 29,614 |
Non-compete agreements |  |  | 1,447 |  |  |  | (1,166 | ) |  |  | 281 |  |  |  | 1,581 |  |  |  | (1,562 | ) |  |  | 19 |
Total |  | $ | 169,123 |  |  | $ | (49,252 | ) |  | $ | 119,871 |  |  | $ | 74,208 |  |  | $ | (40,989 | ) |  | $ | 33,219 |
Trade names initially valued at $2,321 that were acquired as part of the GPT acquisition are considered to be indefinite-lived and are not subject to amortization. The range of useful lives as well as the weighted-average remaining useful lives of amortizable intangible assets as of March 31, 2020 are as follows:
Description |  | Estimated Useful Life (Years) |  |  | Weighted Average Remaining Life (Years) |
Intellectual Property |  |  | 10 - 15 |  |  |  | 9.5 |
Trade Name |  |  | 5 - 10 |  |  |  | 4.4 |
Customer Relationships |  |  | 5 - 10 |  |  |  | 9.5 |
Non-compete Agreements |  |  | 5 - 10 |  |  |  | 4.4 |
The increase in intangible assets during the year ended March 31, 2019 is related to the acquisitions of IBP and GPT. See Note 4. "Significant Transactions" for more information. The following is estimated amortization expense for the years ending March 31:
2021 |  | $ | 14,813 |
2022 |  |  | 14,448 |
2023 |  |  | 14,240 |
2024 |  |  | 13,724 |
2025 |  |  | 12,129 |
Amortization expense of intangibles acquired in a business combination for the years ended March 31, 2020 , 2019 and 2018 was $10,637, $7,090, and $6,929, respectively.

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