Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets, Net of Accumulated Amortization

v3.10.0.1
Goodwill and Intangible Assets, Net of Accumulated Amortization
12 Months Ended
May 31, 2018
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 Company had goodwill balances on its Consolidated Balance Sheets of $814.0 million as of May 31, 2018 and $657.1 million as of May 31, 2017.  The increase of $156.9 million in goodwill since May 31, 2017 was the result of the acquisitions of HROI in August 2017 and Lessor in February 2018.  Refer to Note C for further details.

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







 

 

 

 

 

 



 

 

 

 

 

 



 

May 31,

In millions

 

2018

 

2017

Client lists(1)

 

$

308.5 

 

$

293.5 

Other intangible assets

 

 

13.3 

 

 

5.4 

Total intangible assets, gross

 

 

321.8 

 

 

298.9 

Less: Accumulated amortization

 

 

180.4 

 

 

241.3 

Intangible assets, net of accumulated amortization

 

$

141.4 

 

$

57.6 

(1)

During fiscal 2018, the Company resolved a contractual dispute within certain licensees.  As part of this agreement, the Company acquired rights to certain client lists for approximately $30.0 million. Refer to Note P for further details. In addition, the balance as of May 31, 2018 includes client lists from the HROI and Lessor acquisitions. Refer to Note C for further details.



During fiscal 2018, the Company acquired intangible assets with weighted-average amortization periods as follows: customer lists  8.8 years; other intangible assets  — 3.0 years; and total — 8.8 years.  Amortization expense relating to intangible assets was $21.1 million, $18.1 million, and $15.9 million for fiscal years 2018,  2017, and 2016, 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

2019

 

$

25.5 

2020

 

 

22.4 

2021

 

 

19.3 

2022

 

 

16.4 

2023

 

 

14.1