GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Aug. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 6. 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, 2019		$	71,941	$	2,384	$	74,325
	Foreign currency translation	—		195		195
Balance at August 31, 2020		71,941		2,579		74,520
	Acquisitions	—		1,909		1,909
	Foreign currency translation	—		(98)		(98)
Balance at August 31, 2021		71,941		4,390		76,331
Accumulated impairment
Balance at September 1, 2019		(10,036)		(151)		(10,187)
	Foreign currency translation	—		(12)		(12)
Balance at August 31, 2020		(10,036)		(163)		(10,199)
	Foreign currency translation	—		5		5
Balance at August 31, 2021		(10,036)		(158)		(10,194)
Goodwill, net
Balance at September 1, 2019		61,905		2,233		64,138
	Foreign currency translation	—		183		183
Balance at August 31, 2020		61,905		2,416		64,321
	Acquisitions	—		1,909		1,909
	Foreign currency translation	—		(93)		(93)
Balance at August 31, 2021		$	61,905	$	4,232	$	66,137

As of August 31, 2021 and 2020, the excess of the fair value over the carrying value of each reporting unit was substantial. There were no goodwill impairment charges in 2021, 2020 or 2019.

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

	August 31, 2021						August 31, 2020
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Patents	$	7,203	$	3,621	$	3,582	$	7,203	$	2,647	$	4,556
Customer base	6,079		5,629		450		6,111		4,900		1,211
Perpetual lease rights	4,395		860		3,535		4,766		866		3,900
Non-compete agreements	3,050		778		2,272		3,050		422		2,628
Brand name	838		585		253		838		501		337
Other	101		92		9		101		85		16
Total	$	21,666	$	11,565	$	10,101	$	22,069	$	9,421	$	12,648

In connection with the Acquisition, the Company recorded an unfavorable contract backlog liability of $110.2 million. The unfavorable contract backlog liability had a net carrying amount of $6.0 million at August 31, 2020 and was fully amortized at August 31, 2021. Amortization of the unfavorable contract backlog liability was $6.0 million, $29.4 million and $74.8 million for 2021, 2020 and 2019, respectively, and was recorded as an increase to net sales in the Company's consolidated statements of earnings.

Perpetual lease rights are amortized over an estimated useful life of 80 years. All other intangible assets with definitive lives are amortized over estimated useful lives ranging from 5 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 in 2021 and 2020, and $2.2 million in 2019. Estimated amounts of amortization expense for the next five years are as follows:

Year Ended August 31,	(in thousands)
2022	$	1,928
2023	1,473
2024	1,436
2025	1,078
2026	153