Deferred Costs, Capitalized, Prepaid, and Other Assets

12 Months Ended

Aug. 31, 2023

Other assets as of August 31, 2023 and 2022, are as follows:


	2023		2022
	(Dollars in thousands)
Goodwill	$	179,976	$	179,976
Customer lists, trademarks and other intangible assets	46,980		53,165
Notes receivable (Note 3)	76,919		46,012
Long-term derivative assets (Note 15)	1,119		8,546
Prepaid pension and other benefits (Note 13)	78,819		74,810
Capitalized major maintenance	289,377		147,521
Cash value life insurance	134,126		128,876
Operating lease right of use assets (Note 19)	254,844		242,859
Other	68,364		92,230
Total other assets	$	1,130,524	$	973,995

Goodwill and Other Intangible Assets

Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is assessed for impairment on an annual basis as of July 31, either by first assessing qualitative factors to determine whether a quantitative goodwill impairment test is necessary or by proceeding directly to the quantitative test. The quantitative test may be required more frequently if triggering events or other circumstances occur that could indicate impairment. Goodwill is assessed for impairment at the reporting unit level, which has been determined to be our operating segments or one level below our operating segments in certain instances.

There were no changes in the net carrying amount of goodwill for the year ended August 31, 2023. Changes in the net carrying amount of goodwill for the year ended August 31, 2022, by segment, are as follows:


	Energy		Ag		Corporate and Other		Total
	(Dollars in thousands)
Balances, August 31, 2021	$	552	$	160,475	$	10,574	$	171,601
Goodwill acquired during the period	8,906		—		—		8,906
Goodwill disposed of during the period	—		(531)		—		(531)


Balances, August 31, 2022	$	9,458	$	159,944	$	10,574	$	179,976

No goodwill has been allocated to our Nitrogen Production segment, which consists of a single investment accounted for under the equity method of accounting, and allocated expenses.

No goodwill impairments were identified as a result of our annual goodwill analyses performed as of July 31, 2023, 2022 or 2021. Management will continue to monitor the results and projected cash flows for each of our businesses to assess whether any reserves or impairments may be necessary in the future.

Intangible assets subject to amortization primarily include customer lists, trademarks and noncompete agreements, and are amortized over their respective useful lives (ranging from two to 30 years). We have no material intangible assets with indefinite useful lives. All long-lived assets, including other identifiable intangible assets, are also assessed for impairment in accordance with U.S. GAAP and evaluated for impairment whenever triggering events or other circumstances indicate the carrying amount of an asset group or reporting unit may not be recoverable. Information regarding intangible assets is as follows:


	August 31, 2023						August 31, 2022
	Carrying Amount		Accumulated Amortization		Net		Carrying Amount		Accumulated Amortization		Net
	(Dollars in thousands)
Customer lists	$	85,341	$	(41,374)	$	43,967	$	84,565	$	(35,280)	$	49,285
Trademarks and other intangible assets	11,332		(8,319)		3,013		11,902		(8,022)		3,880
Total intangible assets	$	96,673	$	(49,693)	$	46,980	$	96,467	$	(43,302)	$	53,165

Intangible asset amortization expense for the years ended August 31, 2023, 2022 and 2021, was $6.7 million, $6.8 million and $6.9 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for future years is as follows:


	(Dollars in thousands)
2024	$	6,631
2025	6,415
2026	6,233
2027	6,178
2028	6,178
Thereafter	15,345
Total	$	46,980

Capitalized Major Maintenance

Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2023, 2022 and 2021, is summarized below:


	Balance at Beginning of Year		Cost Deferred		Amortization		Balance at End of Year
	(Dollars in thousands)
2023	$	147,521	$	216,762	$	(74,906)	$	289,377
2022	196,641		25,401		(74,521)		147,521
2021	228,511		41,899		(73,769)		196,641

Other Current Assets

Other current assets as of August 31, 2023 and 2022, are as follows:


	2023		2022
	(Dollars in thousands)
Derivative assets (Note 15)	$	320,119	$	535,698
Margin and related deposits	342,872		390,782
Prepaid expenses	149,682		127,286
Supplier advance payments	136,304		198,753
Restricted cash (Note 1)	79,301		109,517
Other	14,095		20,668
Total other current assets	$	1,042,373	$	1,382,704

Margin and Related Deposits

Many of our derivative contracts with futures and options brokers require us to make margin deposits of cash or other assets. Subsequent margin deposits may also be necessary when changes in commodity prices result in a loss on the contract value to comply with applicable regulations. Our margin and related deposit assets are generally held in separate accounts to support the associated derivative contracts and may be used to fund or partially fund the settlement of those contracts as they expire. Similar to our derivative financial instruments, margin and related deposits are reported on a gross basis.

Prepaid Expenses and Supplier Advance PaymentsPrepaid expenses and supplier advance payments are typically for periods less than 12 months and include amounts paid in advance for products and services. Supplier advance payments are primarily for grain purchases from suppliers and amounts paid to crop nutrient and crop protection product suppliers to lock in future supply, pricing and discounts.