Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.8.0.1
Goodwill
9 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

Goodwill
The carrying amount of goodwill by operating segment as of December 31, 2017 is as follows:
 
United States
 
Canada
 
Europe
 
Asia
 
Total
Balance as of March 31, 2017
$
52,016

 
$
43,444

 
$
18,437

 
$
8,624

 
$
122,521

Goodwill acquired

 
87,540

 

 

 
87,540

Foreign currency translation impact

 
4,003

 
2,134

 

 
6,137

Balance as of December 31, 2017
$
52,016

 
$
134,987

 
$
20,571

 
$
8,624

 
$
216,198



Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If required, we also perform a quantitative analysis using the income approach, based on discounted future cash flows, which are derived from internal forecasts and economic expectations, and the market approach based on market multiples of guideline public companies. The most significant inputs in the Company's quantitative goodwill impairment tests are projected financial information, the weighted average cost of capital and market multiples for similar transactions. Our annual impairment test is performed during the fourth quarter of our fiscal year.
In prior years, we experienced sizable declines in revenue and operating results within our Canadian operations, and considered such to be an indication of potential goodwill and intangible asset impairment. These declines in operating results principally resulted from lower crude oil prices, which had a significant adverse impact on capital spending in Canada. During fiscal year 2018, we have experienced increased revenues and operating results in Canada, and project continued growth. Accordingly, during the third quarter of fiscal 2018, we did not conclude a triggering event existed within our Canadian reporting units requiring further analysis. We will continue to evaluate our Canadian operations and assess on a quarterly basis whether it is more likely than not that the fair value of the Canadian reporting unit is less than its carrying amount.
Similarly, based upon our qualitative analyses, we have not determined that it is more likely than not that the fair value of our U.S. reporting unit is less than its carrying amount; however, we have experienced losses in the U.S. for each of the first two quarters of fiscal 2018. If changes in estimates and assumptions used to determine whether impairment exists, or if we experience future declines in actual and forecasted operating results and/or market conditions in the United States, we may be required to reevaluate the fair value of our United States reporting unit, which could ultimately result in an impairment to goodwill and/or indefinite-lived intangible assets in future periods.


Our total intangible assets consisted of the following:
    
    
 
 
Gross Carrying Amount at December 31, 2017
 
Accumulated Amortization
 
Net Carrying Amount at December 31, 2017
 
Gross Carrying Amount at March 31, 2017
 
Accumulated Amortization
 
Net Carrying Amount at March 31, 2017
Products
 
$
66,408

 
$
1,107

 
$
65,301

 
$

 
$

 
$

Trademarks
 
$
46,248

 
$
742

 
$
45,506

 
$
44,563

 
$
521

 
$
44,042

Developed technology
 
10,181

 
3,989

 
6,192

 
9,796

 
3,454

 
6,342

Customer relationships
 
114,148

 
75,094

 
39,054

 
99,676

 
64,682

 
34,994

Certifications
 
459

 

 
459

 
442

 

 
442

Other
 
5,958

 
3,034

 
2,924

 
2,626

 
2,268

 
358

Total
 
$
243,402

 
$
83,966

 
$
159,436

 
$
157,103

 
$
70,925

 
$
86,178