Goodwill and Intangibles

12 Months Ended

Aug. 29, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Note N – 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 31, 2013	$	302,645	$	65,184	$	367,829
Goodwill adjustments⁽¹⁾		—		—		—

Net balance as of August 30, 2014		302,645		65,184		367,829
Goodwill added through acquisition⁽²⁾		24,058		—		24,058
Goodwill adjustments⁽¹⁾		—		—		—

Net balance as of August 29, 2015	$	326,703	$	65,184	$	391,887

(1)

Total accumulated goodwill impairment for both August 29, 2015 and August 30, 2014 is $18.3 million

(2)

See “Note M – Acquisition” for discussion of the acquisition completed during the first quarter of fiscal 2015

The Company performs its annual goodwill and intangibles impairment test in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2015 and fiscal 2014, the Company concluded that its goodwill was not impaired.

The carrying amounts of intangible assets are included in Other long-term assets as follows:


	August 29, 2015
(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing intangible assets:
Technology		3-5 years	$	10,570	$	(5,757	)	$	4,813
Noncompete agreements		5 years		1,300		(703	)		597
Customer relationships		3-10 years		49,676		(12,256	)		37,420

			$	61,546	$	(18,716	)		42,830

Non-amortizing intangible asset:
Trade names									26,900

Total intangible assets other than goodwill								$	69,730


	August 30, 2014
(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing intangible assets:
Technology		3-5 years	$	10,570	$	(3,528	)	$	7,042
Noncompete agreements		5 years		1,300		(443	)		857
Customer relationships		3-10 years		48,376		(6,007	)		42,369

			$	60,246	$	(9,978	)		50,268

Non-amortizing intangible asset:
Trade names									24,600

Total intangible assets other than goodwill								$	74,868

During fiscal 2015, the Company recorded an increase to intangible assets of $3.6 million related to the acquisition of IMC. Additionally, the Company made an installment payment for $10 million related to certain customer relationships purchased during 2014 relating to its ALLDATA operations. During fiscal 2014, the Company purchased $30.2 million of intangible assets relating to the rights to certain customer relationships and technology assets relating to its ALLDATA operations.

As part of its annual impairment test, the Company evaluates the AutoAnything and IMC trade names for impairment in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2015, the Company concluded that AutoAnything’s and IMC’s trade names were not impaired. In the fourth quarter of fiscal 2014, the Company concluded that AutoAnything’s trade name was not impaired. Trade names at August 29, 2015 and August 30, 2014 reflect a total accumulated impairment of $4.1 million.

Amortization expense of intangible assets for the year ended August 29, 2015 and August 30, 2014 was $8.7 million and $7.1 million, respectively.

Total future amortization expense for intangible assets that have finite lives, based on the existing intangible assets and their current estimated useful lives as of August 29, 2015, is estimated as follows:


(in thousands)	Total
2016	$	8,748
2017		8,482
2018		6,855
2019		6,203
2020		6,203
Thereafter		6,339

	$	42,830

- 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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