Enerpac Tool Group Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

3 Months Ended

Nov. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

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 three months ended November 30, 2019 are as follows (in thousands):



	Industrial Tools & Services		Other		Total
Balance as of August 31, 2019	$	242,873	$	17,542	$	260,415
Impact of changes in foreign currency rates	3,552		2		3,554
Balance as of November 30, 2019	$	246,425	$	17,544	$	263,969

The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands):



		November 30, 2019						August 31, 2019
	Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value
Amortizable intangible assets:
Customer relationships	14	$	127,242	$	99,191	$	28,051	$	126,229	$	96,817	$	29,412
Patents	12	13,439		12,605		834		13,227		12,276		951
Trademarks and tradenames*	12	3,219		1,940		1,279		4,513		2,921		1,592
Indefinite lived intangible assets:
Tradenames	N/A	21,071		—		21,071		20,420		—		20,420
		$	164,971	$	113,736	$	51,235	$	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 impairment of the Milwaukee Cylinder trademark as discussed in Note 5, "Other Divestiture Activities."

The Company estimates that amortization expense will be $5.7 million for the remaining nine months of fiscal 2020. Amortization expense for future years is estimated to be: $6.7 million in fiscal 2021, $5.9 million in fiscal 2022, $4.4 million in fiscal 2023, $2.8 million in fiscal 2024, $2.1 million in fiscal 2025 and $2.6 million cumulatively 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

During the three months ended November 30, 2018, within the Other segment, the Company recognized a $10.2 million Goodwill impairment charge related to the Cortland U.S. business in conjunction with triggering events identified during the period.