GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Aug. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table details the changes in the carrying amount of goodwill by reportable segment:

(in thousands)		North America		Europe		Consolidated
Goodwill, gross
Balance at September 1, 2018		$	71,941	$	2,568	$	74,509
	Foreign currency translation	—		(184)		(184)
Balance at August 31, 2019		71,941		2,384		74,325
	Foreign currency translation	—		195		195
Balance at August 31, 2020		71,941		2,579		74,520
Accumulated impairment losses
Balance at September 1, 2018		(10,036)		(163)		(10,199)
	Foreign currency translation	—		12		12
Balance at August 31, 2019		(10,036)		(151)		(10,187)
	Foreign currency translation	—		(12)		(12)
Balance at August 31, 2020		(10,036)		(163)		(10,199)
Goodwill, net
Balance at September 1, 2018		61,905		2,405		64,310
	Foreign currency translation	—		(172)		(172)
Balance at August 31, 2019		61,905		2,233		64,138
	Foreign currency translation	—		183		183
Balance at August 31, 2020		$	61,905	$	2,416	$	64,321

As of August 31, 2020 and 2019, the excess of the fair value over the carrying value of each reporting unit was substantial. There were no goodwill impairment charges in 2020, 2019, or 2018.

The following intangible assets subject to amortization are included in other noncurrent assets on the Company's consolidated balance sheets:

	August 31, 2020						August 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Patents	$	7,203	$	2,647	$	4,556	$	6,993	$	1,709	$	5,284
Customer base	6,111		4,900		1,211		6,088		4,081		2,007
Perpetual lease rights	4,766		866		3,900		4,146		749		3,397
Non-compete agreements	3,050		422		2,628		2,810		382		2,428
Brand name	838		501		337		628		454		174
Other	101		85		16		101		79		22
Total	$	22,069	$	9,421	$	12,648	$	20,766	$	7,454	$	13,312

In connection with the Acquisition, the Company recorded an unfavorable contract backlog liability of $110.2 million. At August 31, 2020 and 2019, the net carrying amount of the liability was $6.0 million and $35.4 million, respectively. Amortization of the unfavorable contract backlog was $29.4 million and $74.8 million for the twelve months ended August 31, 2020 and 2019, respectively, and was recorded as an increase to net sales in the Company's consolidated statements of earnings.

Perpetual lease rights at August 31, 2020 have an estimated useful life of 85 years. All other intangible assets with definitive lives are amortized over estimated useful lives ranging from 3 to 15 years. Excluding goodwill, the Company does not have any other significant intangible assets with indefinite lives. Amortization expense for intangible assets was $2.1 million for 2020 and $2.2 million for 2019 and 2018. Estimated amounts of amortization expense for the next five years are as follows.

Year Ended August 31,	(in thousands)
2021	$	2,030
2022	1,755
2023	1,296
2024	1,259
2025	922