Goodwill and Intangibles

9 Months Ended

May 09, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Note L – Goodwill and Intangibles

The changes in the carrying amount of goodwill are as follows:


(in thousands)	Auto Parts Locations		Other		Total

Net balance as of August 30, 2014	$	302,645	$	65,184	$	367,829
Goodwill adjustments added through acquisition⁽¹⁾		16,784		—		16,784

Net balance as of May 9, 2015	$	319,429	$	65,184	$	384,613

(1)

See Note K for discussion of the acquisition completed during the thirty-six weeks ended May 9, 2015

The Company recorded an increase to intangible assets of $7.7 million during the thirty-six weeks ended May 9, 2015 related to the acquisition of IMC. The carrying amounts of intangible assets are included in Other long-term assets as follows:


(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Amortizing intangible assets:
Technology		3-5 years	$	10,570	$	(5,071	)	$	5,499
Noncompete agreements		5 years		1,300		(623	)		677
Customer relationships		3-10 years		53,776		(10,472	)		43,304

			$	65,646	$	(16,166	)		49,480

Non-amortizing intangible asset:
Trade name									26,900

Total intangible assets other than goodwill								$	76,380

Amortization expense of intangible assets for the twelve and thirty-six week period ended May 9, 2015 was $2.0 million and $6.2 million, respectively. Amortization expense of intangible assets for the twelve and thirty-six week periods ended May 10, 2014 was $2.0 million and $4.4 million, respectively.

During the thirty-six week period ended May 9, 2015, the Company made an installment payment for $10 million related to certain customer relationships purchased during fiscal 2014 relating to its ALLDATA operations.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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