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 three months ended November 30, 2020 are as follows (in thousands):
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Industrial Tools & Services |
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Other |
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Total |
Balance as of August 31, 2020 |
$ |
263,537 |
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$ |
17,617 |
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$ |
281,154 |
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Impact of changes in foreign currency rates |
(176) |
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(1) |
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(177) |
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Balance as of November 30, 2020 |
$ |
263,361 |
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$ |
17,616 |
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$ |
280,977 |
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The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands):
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November 30, 2020 |
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August 31, 2020 |
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Weighted Average Amortization Period (Years) |
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Gross Carrying Value |
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Accumulated Amortization |
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Net Book Value |
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Gross Carrying Value |
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Accumulated Amortization |
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Net Book Value |
Amortizable intangible assets: |
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Customer relationships |
14 |
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$ |
141,657 |
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$ |
108,358 |
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$ |
33,299 |
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$ |
141,853 |
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$ |
106,491 |
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$ |
35,362 |
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Patents |
12 |
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14,350 |
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13,361 |
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989 |
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14,365 |
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13,228 |
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1,137 |
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Trademarks and tradenames |
12 |
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3,264 |
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2,275 |
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989 |
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3,277 |
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2,257 |
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1,020 |
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Indefinite lived intangible assets: |
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Tradenames |
N/A |
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24,820 |
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— |
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24,820 |
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24,863 |
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— |
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24,863 |
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$ |
184,091 |
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$ |
123,994 |
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$ |
60,097 |
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$ |
184,358 |
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$ |
121,976 |
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$ |
62,382 |
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The Company estimates that amortization expense will be $6.0 million for the remaining nine months of fiscal 2021. Amortization expense for future years is estimated to be: $7.3 million in fiscal 2022, $5.8 million in fiscal 2023, $4.2 million in fiscal 2024, $3.4 million in fiscal 2025, $2.0 million in fiscal 2026 and $6.5 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.
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