Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The Company completed its annual impairment analysis for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2022. The qualitative assessment was performed and the Company determined that it is more likely than not that 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 analysis.

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, 2022 and 2021 (in millions):


	EMS		DMS		Total
Balance as of August 31, 2020	$	74	$	623	$	697
Acquisitions and adjustments	—		17		17
Change in foreign currency exchange rates	—		1		1
Balance as of August 31, 2021	74		641		715
Acquisitions and adjustments	6		1		7
Change in foreign currency exchange rates	(1)		(17)		(18)
Balance as of August 31, 2022	$	79	$	625	$	704

The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in millions):


	August 31, 2022				August 31, 2021
	Gross Carrying Amount		Accumulated Impairment		Gross Carrying Amount		Accumulated Impairment
Goodwill	$	1,724	$	1,020	$	1,735	$	1,020

The following table presents the Company’s total purchased intangible assets as of August 31, 2022 and 2021 (in millions):


	Weighted Average Amortization Period (in years)	August 31, 2022						August 31, 2021
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contractual agreements and customer relationships	12	$	302	$	(231)	$	71	$	304	$	(217)	$	87
Intellectual property	9	198		(173)		25		191		(169)		22
Finite-lived trade names	Not applicable	78		(67)		11		78		(56)		22
Trade names	Indefinite	51		—		51		51		—		51
Total intangible assets	12	$	629	$	(471)	$	158	$	624	$	(442)	$	182

Intangible asset amortization for fiscal years 2022, 2021 and 2020 was approximately $34 million, $47 million and $56 million, respectively. The estimated future amortization expense is as follows (in millions):


Fiscal Year Ended August 31,
2023	$	31
2024	17
2025	15
2026	12
2027	12
Thereafter	20
Total	$	107