Goodwill and Intangibles

12 Months Ended

Aug. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

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 26, 2017	$	326,703		$	65,184		$	391,887
Goodwill adjustments		(24,058	)		(65,184	)		(89,242	)
Net balance as of August 25, 2018(1)		302,645			—			302,645
Goodwill adjustments		—			—			—
Net balance as of August 31, 2019	$	302,645		$	—		$	302,645

(1) During the second quarter of fiscal 2018, the Company recorded impairment charges related to its IMC and AutoAnything businesses. See “Note M – Sale of Assets” for further discussion.

The Company performs its annual goodwill and intangibles impairment test in the fourth quarter of each fiscal year. In the fourth quarter of fiscal 2019 and 2018, the Company concluded its remaining goodwill was not impaired. Total accumulated goodwill impairment as of August 31, 2019 and August 25, 2018 was $107.5 million.

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

	August 31, 2019
(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing intangible assets:
Technology		3-5 years	$	870	$	(870	)	$	—
Customer relationships		3-10 years		29,376		(23,760	)		5,616
			$	30,246	$	(24,630	)		5,616
Total intangible assets other than goodwill								$	5,616
	August 25, 2018(1)
(in thousands)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing intangible assets:
Technology		3-5 years	$	870	$	(870	)	$	—
Customer relationships		3-10 years		29,376		(19,587	)		9,789
			$	30,246	$	(20,457	)		9,789
Total intangible assets other than goodwill								$	9,789

(1) During the second quarter of fiscal 2018, the Company recorded $26.9 million of impairment charges related to AutoAnything’s and IMC’s trade names as the Company determined that the approximate fair value less costs to sell the businesses was significantly lower than the carrying value of the net assets. See “Note M – Sale of Assets” for further discussion. Trade names at August 25, 2018 reflect a total accumulated impairment of $31.0 million.

Amortization expense of intangible assets for the years ended August 31, 2019 and August 25, 2018 was $4.2 million and $5.1 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 31, 2019, is estimated as follows:

(in thousands)	Total
2020	$	4,173
2021		1,443
Thereafter		—
	$	5,616