Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets, Net of Accumulated Amortization

v3.19.2
Goodwill and Intangible Assets, Net of Accumulated Amortization
12 Months Ended
May 31, 2019
Goodwill and Intangible Assets, Net of Accumulated Amortization [Abstract]  
Goodwill and Intangible Assets, Net of Accumulated Amortization

Note J — Goodwill and Intangible Assets, Net of Accumulated Amortization

The change in goodwill for the years ended May 31, 2019 and May 31, 2018 are as follows:





 

 

 

 

 

 



 

May 31,

In millions

 

2019

 

2018

Balance, beginning of fiscal year

 

$

814.0 

 

$

657.1 

Changes during the period:

 

 

 

 

 

 

Goodwill acquired

 

 

972.1 

 

 

162.6 

Acquisition accounting adjustments

 

 

1.6 

 

 

 -

Currency translation adjustment

 

 

(5.1)

 

 

(5.7)

Balance, end of fiscal year

 

$

1,782.6 

 

$

814.0 



 

 

 

 

 

 

Goodwill acquired in fiscal 2019 related to the December 2018 acquisition of Oasis. Goodwill acquired in fiscal 2018 related to the August 2017 acquisition of HROi and February 2018 acquisition of Lessor.  Refer to Note D of this Item 8 for further details.

The Company had certain intangible assets on its Consolidated Balance Sheets. The components of intangible assets, at cost, consisted of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

May 31,

In millions

 

2019

 

2018

Client lists(1)

 

$

608.2 

 

$

308.5 

Other intangible assets

 

 

23.0 

 

 

13.3 

Total intangible assets, gross

 

 

631.2 

 

 

321.8 

Less: Accumulated amortization

 

 

232.1 

 

 

180.4 

Intangible assets, net of accumulated amortization

 

$

399.1 

 

$

141.4 

(1)

Client lists and other intangible assets include current estimates of amounts acquired from Oasis as of December 20, 2018.  Refer to Note D of this Item 8 for further details.



During fiscal 2019, the Company acquired intangible assets with weighted-average amortization periods as follows: customer lists 10.0 years; other intangible assets  — 3.0 years; and total —9.7 years.  Amortization expense relating to intangible assets was $55.8 million, $21.1 million, and $18.1 million for fiscal years 2019,  2018, and 2017, respectively.

The estimated amortization expense for the next five fiscal years relating to intangible asset balances is as follows:







 

 

 

In millions

 

Estimated amortization

Year ending May 31,

 

expense

2020

 

$

67.1 

2021

 

 

63.8 

2022

 

 

57.4 

2023

 

 

54.1 

2024

 

 

51.7