Goodwill and Other Intangible Assets

9 Months Ended

May 31, 2023

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 nine months ended May 31, 2023 are as follows (in thousands):

	IT&S		Other		Total
Balance as of August 31, 2022	$	246,740	$	11,209	$	257,949
Impact of changes in foreign currency rates	6,738		—		6,738
Balance as of May 31, 2023	$	253,478	$	11,209	$	264,686

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

		May 31, 2023						August 31, 2022
	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	$	137,654	$	122,979	$	14,675	$	135,101	$	117,275	$	17,826
Patents	11	13,974		13,402		572		13,708		13,104		604
Trademarks and tradenames	12	3,192		2,467		725		3,132		2,329		803
Indefinite lived intangible assets:
Tradenames	N/A	23,112		—		23,112		22,274		—		22,274
		$	177,932	$	138,848	$	39,084	$	174,215	$	132,708	$	41,507

The Company estimates that amortization expense will be $1.3 million for the remaining three months of fiscal 2023. Amortization expense for future years is estimated to be: $3.7 million in fiscal 2024, $3.1 million in fiscal 2025, $1.9 million in fiscal 2026, $1.8 million in fiscal 2027, $1.7 million in fiscal 2028 and $2.5 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.

In the nine months ended May 31, 2022, the Company recorded "Impairment & divestiture charges" of $1.1 million; $0.8 million related to a customer relationship intangible asset whereby the Company no longer intends to operate in the country associated with said customers and $0.3 million associated with an indefinite lived tradename intangible asset on a secondary brand whereby the Company plans to sunset its use over the remainder of the fiscal year.