AZZ INC - 10-K filing on 2016-04-21

Goodwill and Intangible Assets (Notes)

12 Months Ended

Feb. 29, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill is not amortized but is subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives.

Changes in goodwill by segment during the years ended February 29, 2016 and February 28, 2015 are as follows:



Segment	March 1, 2015		Acquisitions		Foreign Exchange Translation			February 29, 2016
	(In thousands)
Galvanizing	$	95,538	$	15,576	$	(1,800	)	$	109,314
Energy	183,536		—		(323		)	183,213
Total	$	279,074	$	15,576	$	(2,123	)	$	292,527



Segment	March 1, 2014		Acquisitions		Foreign Exchange Translation			February 28, 2015
	(In thousands)
Galvanizing	$	94,731	$	3,306	$	(2,499	)	$	95,538
Energy	183,825		807		(1,096		)	183,536
Total	$	278,556	$	4,113	$	(3,595	)	$	279,074

The Company completes its annual impairment analysis of goodwill on December 31st of each year. As a result, the Company determined that there was no impairment of goodwill.

Amortizable intangible assets consisted of the following at February 29, 2016 and February 28, 2015:



	2016			2015
	(In thousands)
Amortizable intangible assets
Customer related intangibles	$	169,637		$	159,235
Non-compete agreements	5,596			5,715
Trademarks	4,569			5,042
Technology	7,400			7,400
Certifications	—			209
Engineering drawings	24,600			24,600
Backlog	7,600			8,355
	219,402			210,556
Less accumulated amortization	(71,201		)	(56,699		)
	$	148,201		$	153,857

The Company recorded amortization expense of $16.2 million, $18.0 million and $18.2 million for fiscal 2016, 2015 and 2014, respectively. The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter.



	(In thousands)
2017	$	16,490
2018	15,669
2019	15,032
2020	14,582
2021	14,417
Thereafter	72,011
Total	$	148,201