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, 2023
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, 2023 and 2022 by operating segment are as follows (in thousands):
IT&S Other Total
Balance as of August 31, 2021 $ 265,087  $ 12,506  $ 277,593 
Impairment charge —  (1,297) (1,297)
Impact of changes in foreign currency rates (18,347) —  (18,347)
Balance as of August 31, 2022 246,740  11,209  257,949 
Impact of changes in foreign currency rates 8,546  —  8,546 
Balance as of August 31, 2023 $ 255,285  $ 11,209  $ 266,494 
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, 2023 August 31, 2022
  Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value
Amortizable intangible assets:
Customer relationships 14 $ 108,292  $ 95,395  $ 12,897  $ 135,101  $ 117,275  $ 17,826 
Patents 13 9,769  9,210  559  13,708  13,104  604 
Trademarks and tradenames 14 2,734  2,197  537  3,132  2,329  803 
Indefinite lived intangible assets:
Tradenames N/A 23,345  —  23,345  22,274  —  22,274 
$ 144,140  $ 106,802  $ 37,338  $ 174,215  $ 132,708  $ 41,507 
The Company estimates amortization expense for future years to be: $3.3 million in fiscal 2024, $2.9 million in fiscal 2025, $1.9 million in fiscal 2026, $1.8 million in fiscal 2027, $1.6 million in fiscal 2028 and $2.5 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 2023 Impairment Charges
In conjunction with our annual goodwill impairment assessment, the Company did not record any charges in fiscal 2023.
Fiscal 2022 Impairment Charges
The carryover effects from the COVID-19 pandemic coupled with current year labor, supply chain and inflation challenges had a more than anticipated effect on the Cortland Industrial business. Therefore, in conjunction with our annual goodwill impairment assessment, the Company recognized a $1.3 million goodwill impairment charge associated with the Cortland Industrial reporting unit (Other operating segment) within "Impairment & divestiture (benefit) charges" in the Consolidated Statements of Earnings.
In addition, during fiscal 2022, the Company recorded an impairment charge of $1.1 million on indefinite lived intangible assets; $0.8 million of which was related to a customer relationship intangible asset whereby the Company ceased operations in the country associated with said customers and $0.3 million of which was related to tradename intangible asset on a discontinued secondary brand.