Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

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Goodwill and Other Intangible Assets
 12 Months Ended
Aug. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Note 6.    Goodwill, Intangible Assets and Long-Lived Assets
Changes in the gross carrying value of goodwill and intangible assets result from changes in foreign currency exchange rates, business acquisitions, divestitures and impairment charges. The changes in the carrying amount of goodwill for the years ended August 31, 2020 and 2019 by operating segment are as follows (in thousands):
Industrial Tools & Services Other Total
Balance as of August 31, 2018 $ 248,705  $ 31,427  $ 280,132 
Purchase accounting adjustments 253  —  253 
Impairment charge —  (13,678) (13,678)
Impact of changes in foreign currency rates (6,085) (207) (6,292)
Balance as of August 31, 2019 242,873  17,542  260,415 
Acquisition of HTL Group (Note 4) 11,261  —  11,261 
Impairment charge —  —  — 
Impact of changes in foreign currency rates 9,403  75  9,478 
Balance as of August 31, 2020 $ 263,537  $ 17,617  $ 281,154 
The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands):
  Weighted Average Amortization Period (Year) August 31, 2020 August 31, 2019
  Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value
Amortizable intangible assets:
Customer relationships 14 $ 141,853  $ 106,491  $ 35,362  $ 126,229  $ 96,817  $ 29,412 
Patents 12 14,365  13,228  1,137  13,227  12,276  951 
Trademarks and tradenames* 12 3,277  2,257  1,020  4,513  2,921  1,592 
Indefinite lived intangible assets:
Tradenames N/A 24,863  —  24,863  20,420  —  20,420 
$ 184,358  $ 121,976  $ 62,382  $ 164,389  $ 112,014  $ 52,375 
*The decrease in the Gross Carrying Value and Accumulated Amortization of Trademarks and tradenames is a result of the Milwaukee Cylinder divestiture on December 2, 2019 as discussed in Note 5, "Discontinued Operations and Other Divestiture Activities." The Company recorded a full impairment of the tradename in the first quarter in order to write the net assets of the business down to the expected sales proceeds in advance of the divestiture.
The Company estimates that amortization expense for future years is estimated to be $8.2 million in fiscal year 2021, $7.4 million in fiscal year 2022, $5.8 million in fiscal 2023, $4.2 million in fiscal 2024, $3.4 million in fiscal 2025 and $8.5 million in aggregate thereafter. The future amortization expense amounts represent estimates and may be impacted by future acquisitions, divestitures or changes in foreign currency exchange rates, among other causes.
Fiscal 2019 Impairment Charges
Within the Other segment, the Company recognized a $13.7 million Goodwill impairment charge related to Cortland U.S. in conjunction with triggering events identified during the fiscal year.
In the fourth quarter of fiscal 2019, the Company's branding strategy was revised such that two secondary tradenames previously considered to have indefinite lives were to be phased out and re-branded over the course of fiscal 2020. As such, the Company recorded an impairment & divestiture charge of $2.6 million based on the estimated remaining fair value of the respective tradenames. In addition, based on restructuring actions taken in the fourth quarter of fiscal 2019 related to the North America Services operations, the Company concluded that the fair value of a customer relationship intangible was less than the current net book value, and therefore, a $6.2 million impairment & divestiture charge was recorded. The tradename and customer relationships impairments both related to assets within the IT&S segment.