Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.20.1
Goodwill and Other Intangible Assets
 6 Months Ended
Feb. 29, 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 six months ended February 29, 2020 are as follows (in thousands):
 
Industrial Tools & Services
 
Other
 
Total
Balance as of August 31, 2019
$
242,873

 
$
17,542

 
$
260,415

Acquisition of HTL Group (Note 4)
8,595

 
—

 
8,595

Impact of changes in foreign currency rates
2,815

 
3

 
2,818

Balance as of February 29, 2020
$
254,283

 
$
17,545

 
$
271,828


The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands):
 
 
 
February 29, 2020
 
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
 
$
140,239

 
$
100,895

 
$
39,344

 
$
126,229

 
$
96,817

 
$
29,412

Patents
12
 
14,068

 
12,723

 
1,345

 
13,227

 
12,276

 
951

Trademarks and tradenames*
12
 
3,202

 
2,019

 
1,183

 
4,513

 
2,921

 
1,592

Indefinite lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Tradenames
N/A
 
24,629

 
—

 
24,629

 
20,420

 
—

 
20,420

 
 
 
$
182,138

 
$
115,637

 
$
66,501

 
$
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 business being held for sale as of November 30, 2019 and the impairment charge discussed in Note 5, "Discontinued Operations and Other Divestiture Activities." included the Trademarks and tradenames associated with that business being fully impaired.
The Company estimates that amortization expense will be $4.5 million for the remaining six months of fiscal 2020. Amortization expense for future years is estimated to be: $8.0 million in fiscal 2021, $7.3 million in fiscal 2022, $5.8 million in fiscal 2023, $4.2 million in fiscal 2024, $3.4 million in fiscal 2025 and $8.7 million cumulatively thereafter. The future amortization expense amounts represent estimates and may be impacted by future acquisitions, adjustments to preliminary purchase accounting estimates, divestitures or changes in foreign currency exchange rates, among other causes.
Fiscal 2019 Impairment Charges
Within the Other segment, the Company recognized $3.5 million and $13.7 million of Goodwill impairment charges for the three and six months ended February 28, 2019 related to the Cortland U.S. business in conjunction with triggering events identified during the periods.