GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended March 31, 2025 and 2024 were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Contractor Solutions | | Specialized Reliability Solutions | | Engineered Building Solutions | | Total |
| Balance at April 1, 2023 | | $ | 209,160 | | | $ | 9,278 | | | $ | 24,302 | | | $ | 242,740 | |
| CG and ACG acquisitions | | 107 | | | — | | | — | | | 107 | |
| Dust Free acquisition | | 3,951 | | | — | | | — | | | 3,951 | |
| Falcon acquisition | | 85 | | | — | | | — | | | 85 | |
| Other acquisitions | | 261 | | | — | | | — | | | 261 | |
| Currency translation | | (20) | | | 80 | | | (13) | | | 46 | |
| Balance at March 31, 2024 | | $ | 213,544 | | | $ | 9,358 | | | $ | 24,289 | | | $ | 247,191 | |
| Dust Free acquisition | | (212) | | | — | | | — | | | (212) | |
| PSP 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 | |
The following table provides information about our intangible assets for the years ended March 31, 2025 and 2024 (in thousands, except years):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | March 31, 2025 | | March 31, 2024 |
| | Wtd Avg Life (Years) | | Gross Amount | | Accumulated Amortization | | Gross Amount | | Accumulated Amortization |
| Finite-lived intangible assets: | | | | | | | | | | |
| Patents | | 10 | | $ | 17,784 | | | $ | (10,189) | | | $ | 15,084 | | | $ | (9,306) | |
| Customer lists and amortized trademarks | | 15 | | 402,765 | | | (127,551) | | | 346,136 | | | (103,407) | |
| Non-compete agreements | | 6 | | 1,000 | | | (639) | | | 1,000 | | | (453) | |
| Other | | 10 | | 6,277 | | | (3,141) | | | 6,275 | | | (2,649) | |
| | | | $ | 427,826 | | | $ | (141,520) | | | $ | 368,495 | | | $ | (115,815) | |
| Trade names and trademarks not being amortized (a): | | | | $ | 71,604 | | | $ | — | | | $ | 66,139 | | | $ | — | |
(a) During the fiscal quarter ended March 31, 2024, we recorded a $1.5 million impairment relating to a trademark, included in selling, general and administrative expenses, for our Contractor Solutions segment.
Amortization expense for the years ended March 31, 2025, 2024 and 2023 was $26.3 million, $22.9 million and $22.1 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):
| | | | | | | | |
| 2026 | | $ | 27,165 | |
| 2027 | | 26,104 | |
| 2028 | | 25,712 | |
| 2029 | | 25,636 | |
| 2030 | | 25,570 | |
| Thereafter | | 156,119 | |
| Total | | $ | 286,306 | |
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.