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Goodwill and Other Intangible Assets | 12 Months Ended
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Aug. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company completed its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2019 and determined the fair values of the reporting units and the indefinite-lived intangible assets were in excess of the carrying values and that no impairment existed as of the date of the impairment test. The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2019 and 2018 (in thousands):
| EMS |  | DMS |  | Total
Balance as of August 31, 2017 | $ | 52,574 |  |  | $ | 555,610 |  |  | $ | 608,184 |
Acquisitions and adjustments(1) | 30,763 |  |  | (8,186 | ) |  | 22,577 |
Change in foreign currency exchange rates | (667 | ) |  | (2,349 | ) |  | (3,016 | )
Balance as of August 31, 2018 | 82,670 |  |  | 545,075 |  |  | 627,745 |
Change in foreign currency exchange rates | (702 | ) |  | (4,788 | ) |  | (5,490 | )
Balance as of August 31, 2019 | $ | 81,968 |  |  | $ | 540,287 |  |  | $ | 622,255 |
(1) | Includes $8.2 million of goodwill reallocated between DMS and EMS during fiscal year 2018.
The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in thousands):
| August 31, 2019 |  | August 31, 2018
| Gross Carrying Amount |  | Accumulated Impairment |  | Gross Carrying Amount |  | Accumulated Impairment
Goodwill | $ | 1,642,077 |  |  | $ | 1,019,822 |  |  | $ | 1,647,567 |  |  | $ | 1,019,822 |
The following table presents the Company’s total purchased intangible assets as of August 31, 2019 and 2018 (in thousands):
| Weighted Average Amortization Period (in years) |  | August 31, 2019 |  | August 31, 2018
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Contractual agreements and customer relationships | 12 |  | $ | 292,797 |  |  | $ | (175,199 | ) |  | $ | 117,598 |  |  | $ | 289,947 |  |  | $ | (153,415 | ) |  | $ | 136,532 |
Intellectual property | 6 |  | 173,771 |  |  | (157,606 | ) |  | 16,165 |  |  | 168,181 |  |  | (148,672 | ) |  | 19,509 |
Finite-lived trade names | Not applicable |  | 77,536 |  |  | (5,036 | ) |  | 72,500 |  |  | 5,091 |  |  | (5,091 | ) |  | — |
Trade names | Indefinite |  | 50,590 |  |  | — |  |  | 50,590 |  |  | 123,090 |  |  | — |  |  | 123,090 |
Total intangible assets | 11 |  | $ | 594,694 |  |  | $ | (337,841 | ) |  | $ | 256,853 |  |  | $ | 586,309 |  |  | $ | (307,178 | ) |  | $ | 279,131 |
In the fourth quarter of fiscal year 2019, the Company made a strategic decision that the indefinite-lived trade name of $72.5 million acquired during the acquisition of Nypro would be phased out over the next four years. In connection with a strategic shift to further diversify our portfolio, focus on innovation and technology within the Company’s healthcare business and as a result of the strategic collaboration with a certain medical device company, management decided to implement a rebranding initiative to Jabil Healthcare. Management believes the name change better leverages the Jabil brand and the full range of services available to its customers. As a result of the decision to rebrand, the Company determined the indefinite-lived trade name should no longer be classified as an indefinite-lived intangible asset. Accordingly, prior to reclassifying the trade name to a finite-lived intangible asset, the Company tested it for impairment and determined the fair value of the asset exceeded the carrying value. As such, this trade name was assigned a four-year estimated useful life and will be amortized on an accelerated basis. Intangible asset amortization for fiscal years 2019, 2018 and 2017 was approximately $31.9 million, $38.5 million and $35.5 million, respectively. The estimated future amortization expense is as follows (in thousands):
Fiscal Year Ended August 31, |
2020 | $ | 54,165 |
2021 | 43,780 |
2022 | 28,291 |
2023 | 25,877 |
2024 | 10,976 |
Thereafter | 43,174 |
Total | $ | 206,263 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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