Note 8 - Goodwill

Changes in the carrying value of goodwill are as follows:


(In thousands)	Manufacturing		Wheels, Repair & Parts		Leasing & Services		Total
Balance August 31, 2017	$	25,325	$	43,265	$	–	$	68,590
Additions ⁽¹⁾		839		7,863		–		8,702
Translation		919		–		–		919

Balance August 31, 2018	$	27,083	$	51,128	$	–	$	78,211

⁽¹⁾	Additions to goodwill relate to the GBW repair shop transaction and Manufacturing includes final adjustments to the Astra purchase price allocation. See Note 3 – Acquisitions.


(In thousands)	Goodwill
Gross goodwill balance before accumulated goodwill impairment losses and other reductions	$	230,736
Accumulated goodwill impairment losses		(128,209	)
Accumulated other reductions		(24,316	)

Balance August 31, 2018	$	78,211

The Company performs a goodwill impairment test annually during the third quarter. Goodwill is also tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. The provisions of ASC 350, Intangibles – Goodwill and Other, require the performance of an impairment test on goodwill. The Company compares the fair value of each reporting unit with its carrying value. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Under the market approach, the Company estimates the fair value based on observed market multiples for comparable businesses. An impairment loss is recorded to the extent that the reporting unit’s carrying amount exceeds the reporting unit’s fair value. An impairment loss cannot exceed the total amount of goodwill allocated to the reporting unit. Goodwill was tested during the third quarter of 2018 and the Company concluded that goodwill was not impaired.