Goodwill and Other Intangible Assets, net

9 Months Ended

May 31, 2011

Goodwill and Other Intangible Assets, net [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets, net

In the second quarter of fiscal 2011, the Company performed its annual goodwill impairment testing by comparing the fair value of each reporting unit with its carrying value, including goodwill. As a result of this testing, the Company determined that the fair values of each of the reporting units were significantly in excess of their respective carrying values and the goodwill balances and indefinite lived intangible assets were not impaired as of February 28, 2011. There were no triggering events during the third quarter of fiscal 2011 that required a goodwill impairment test. The Company will continue to monitor its goodwill and indefinite-lived intangible and long-lived assets for possible future impairment.

The gross changes in the carrying amount of goodwill by reporting segment for the nine months ended May 31, 2011 were as follows (in thousands):



	Metals Recycling Business		Auto Parts Business			Total
Balance as of August 31, 2010	$	230,198	$	150,134		$	380,332
Acquisitions	232,341		11,583			243,924
Purchase accounting adjustments	999		(51		)	948
Foreign currency translation adjustment	2,102		1,670			3,772
Balance as of May 31, 2011	$	465,640	$	163,336		$	628,976

The following table presents the Company’s intangible assets and their related lives (dollars in thousands):



		May 31, 2011					August 31, 2010
	Life In Years	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Identifiable intangibles:
Tradename	Indefinite	$	801	$	—		$	750	$	—
Tradename	5 – 6	507		(418		)	583		(423		)
Marketing agreement	5	563		(229		)	563		(159		)
Employment agreements	2	1,117		(1,117		)	1,117		(884		)
Covenants not to compete	2 – 20	30,845		(14,166		)	27,797		(13,329		)
Leasehold interests	2 – 25	1,382		(189		)	862		(266		)
Permits and licenses	3 – 9	826		(174		)	780		(54		)
Supply contracts	Indefinite	361		—			361		—
Supply contracts	2 – 6	5,270		(2,923		)	4,571		(2,035		)
Real property options	Indefinite	299		—			210		—
Real property options	30	100		(49		)	—		—
Total		$	42,071	$	(19,265	)	$	37,594	$	(17,150	)

Intangible assets with finite useful lives are amortized over their useful lives using methods that reflect the pattern over which the economic benefits are expected to be consumed or on a straight-line basis based on estimated lives. Amortization expense for identifiable intangible assets for the three and nine months ended May 31, 2011 was $2 million and $5 million, respectively, compared to $1 million and $4 million, respectively, for the same periods in the prior year.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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