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Note 8 - Goodwill and Long-lived Assets

12 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

Note 8. Goodwill and Long-Lived Assets

Goodwill arises from the excess purchase price of acquired businesses over the fair value of acquired tangible and intangible assets, 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 it may be more likely than not that an impairment exists. We begin by performing a qualitative goodwill assessment, and if the results of that test indicate it is more likely than not an impairment exists for any reporting unit, we then perform a quantitative goodwill impairment test on the reporting unit. When we perform quantitative impairment tests, 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 the reporting unit's estimated future cash flows. 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.

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, 2019	$	29,780		$	18,235			-		$	18,103		259			66,377
Effect of foreign currency translation		(186	)		(20	)		(2,446	)		-		(1	)		(2,653	)
Acquisitions		-			908			77,162			-		-			78,070
Impairment		-			-			-			-		(258	)		(258	)
March 31, 2020		29,594			19,123		$	74,716		$	18,103	$	-		$	141,536
Effect of foreign currency translation		559			63			10,715			-		-			11,337
Goodwill adjustment related to GPT acquisition		-			-			7,968			-		-			7,968
March 31, 2021	$	30,153		$	19,186		$	93,399		$	18,103	$	-		$	160,841

Other intangible assets were as follows:

	*March 31, 2021*							*March 31, 2020*
	*Gross Carrying Amount*		*Accumulated Amortization*			*Net Carrying Amount*		*Gross Carrying Amount*		*Accumulated Amortization*			*Net Carrying Amount*
Intellectual property	$	21,201	$	(8,595	)	$	12,606	$	15,731	$	(6,454	)	$	9,277
Trade names		8,612		(3,129	)		5,483		5,839		(2,855	)		2,984
Customer relationships		145,754		(52,206	)		93,548		146,106		(38,777	)		107,329
Non-compete agreements		1,299		(1,195	)		104		1,447		(1,166	)		281
Total	$	176,866	$	(65,125	)	$	111,741	$	169,123	$	(49,252	)	$	119,871

The increase in the carrying amount of intangible assets was attributable to changes in foreign currency and adjustments to the preliminary purchase price of GPT that are discussed further in Note 4. "Significant Transactions." We acquired trade names as part of the GPT acquisition, which are valued at $4,990 as of March 31, 2021 and are considered to be indefinite lived. As these trade names are not subject to amortization, they are tested for impairment at least annually or more frequently if triggering events indicate it may be more likely than not that an impairment exists.

The range of useful lives and weighted-average remaining useful lives of amortizable intangible assets as of March 31, 2021 were as follows:

			*Weighted Average*
	*Estimated Useful Life*		*Remaining Life*
Description	*(Years)*		*(Years)*
Intellectual Property		10 - 15		8.4
Trade Name		5 - 10		4.3
Customer Relationships		5 - 10		8.5
Non-compete Agreements		5 - 10		2.0

The following is estimated amortization expense for the years ending March 31:

2022	$	14,930
2023		14,721
2024		14,206
2025		12,612
2026		11,824

Amortization expense of intangibles acquired in a business combination for the years ended March 31, 2021, 2020 and 2019 was $14,513, $10,637, and $7,090 respectively.