GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended March 31, 2026 and 2025 were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Contractor Solutions | | Specialized Reliability Solutions | | Engineered Building Solutions | | Total |
| Balance at March, 2024 | | $ | 213,544 | | | $ | 9,358 | | | $ | 24,289 | | | $ | 247,191 | |
| Dust Free acquisition | | (212) | | | — | | | — | | | (212) | |
| PSP Products acquisition | | 7,323 | | | — | | | — | | | 7,323 | |
| PF WaterWorks acquisition | | 10,258 | | | — | | | — | | | 10,258 | |
| Currency translation | | (33) | | | 79 | | | (514) | | | (468) | |
| Balance at March 31, 2025 | | $ | 230,880 | | | $ | 9,437 | | | $ | 23,775 | | | $ | 264,092 | |
| Duckt-Strip acquisition | | 13,287 | | | — | | | — | | | 13,287 | |
| Impairment | | — | | | — | | | (7,493) | | | (7,493) | |
| ProAction Fluids acquisition | | — | | | 6,827 | | | — | | | 6,827 | |
| Hydrotex acquisition | | — | | | 2,795 | | | — | | | 2,795 | |
| MARS Parts acquisition | | 251,616 | | | — | | | — | | | 251,616 | |
| Aspen Manufacturing acquisition | | 100,492 | | | — | | | — | | | 100,492 | |
| PF WaterWorks acquisition | | 619 | | | — | | | — | | | 619 | |
| Currency translation | | 32 | | | 86 | | | 278 | | | 396 | |
| Balance at March 31, 2026 | | $ | 596,926 | | | $ | 19,145 | | | $ | 16,560 | | | $ | 632,631 | |
We assess goodwill for impairment annually or whenever events or circumstances indicate there may be impairment. During the quarter ended March 31, 2026, we completed our annual quantitative impairment assessment for the Greco business, a standalone reporting unit under our Engineered Building Solutions segment, and determined that the fair value of the Greco business was below its carrying value and accordingly recorded a non-cash impairment of $15.6 million, including $7.5 million for goodwill, $6.6 million for intangible assets and $1.5 million for long-lived assets, included in the impairment expenses line in our Consolidated Statement of Income.
The following table provides information about our intangible assets for the years ended March 31, 2026 and 2025 (in thousands, except years):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | March 31, 2026 | | March 31, 2025 |
| | Wtd Avg Life (Years) | | Ending Gross Amount | | Accumulated Amortization | | Ending Gross Amount | | Accumulated Amortization |
| Finite-lived intangible assets: | | | | | | | | | | |
| Patents | | 10 | | $ | 17,785 | | | $ | (11,312) | | | $ | 17,784 | | | $ | (10,189) | |
| Customer lists and amortized trademarks (a) | | 15 | | 922,925 | | | (165,943) | | | 402,765 | | | (127,551) | |
| Non-compete agreements | | 6 | | 1,000 | | | (814) | | | 1,000 | | | (639) | |
| Other | | 10 | | 6,453 | | | (3,514) | | | 6,277 | | | (3,141) | |
| | | | $ | 948,163 | | | $ | (181,583) | | | $ | 427,826 | | | $ | (141,520) | |
| Trade names and trademarks not being amortized (a): | | | | $ | 133,471 | | | $ | — | | | $ | 71,604 | | | $ | — | |
(a) Refer above for intangible assets impairment discussion.
Amortization expense for the years ended March 31, 2026, 2025 and 2024 was $47.3 million, $25.9 million and $22.6 million, respectively. Of these amounts, cost of revenues includes $0.8 million, $0.7 million and $0.7 million, respectively. The following table presents the estimated future amortization of finite-lived intangible assets for the next five fiscal years ending March 31 (in thousands):
| | | | | | | | |
| 2027 | | $ | 60,718 | |
| 2028 | | 60,320 | |
| 2029 | | 60,188 | |
| 2030 | | 59,867 | |
| 2031 | | 59,754 | |
| Thereafter | | 465,733 | |
| Total | | $ | 766,580 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.