XML 41 R30.htm IDEA: XBRL DOCUMENT v3.23.2
GOODWILL AND OTHER INTANGIBLES (Tables)
 9 Months Ended
May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the carrying amount of goodwill
Goodwill by reportable segment is detailed in the following table:
(in thousands)North AmericaEuropeConsolidated
Goodwill, gross
Balance, September 1, 2022$216,059 $43,115 $259,174 
Acquisitions92,077 — 92,077 
Foreign currency translation— 1,037 1,037 
Balance, May 31, 2023308,136 44,152 352,288 
Accumulated impairment
Balance, September 1, 2022(10,036)(129)(10,165)
Foreign currency translation— (14)(14)
Balance, May 31, 2023(10,036)(143)(10,179)
Goodwill, net
Balance, September 1, 2022206,023 42,986 249,009 
Acquisitions92,077 — 92,077 
Foreign currency translation— 1,023 1,023 
Balance, May 31, 2023$298,100 $44,009 $342,109 

Intangible assets subject to amortization are detailed in the following table:
 May 31, 2023August 31, 2022
(in thousands) Useful Lives in YearsGross
Carrying Amount		Accumulated AmortizationNetGross
Carrying Amount		Accumulated AmortizationNet
Developed technologies
1 to 15
$149,009 $20,529 $128,480 $147,040 $6,485 $140,555 
Customer relationships
5 to 17
62,425 5,704 56,721 53,115 2,116 50,999 
Perpetual lease rights
79
5,830 868 4,962 3,584 744 2,840 
Patents
5 to 7.5
7,203 5,327 1,876 7,203 4,596 2,607 
Trade names
 5 to 15
3,253 1,037 2,216 3,212 764 2,448 
Non-compete agreements
5 to 7
2,300 1,402 898 3,050 1,135 1,915 
Other
15
101 101 — 101 99 2 
Total$230,121 $34,968 $195,153 $217,305 $15,939 $201,366 

The acquired assets from the Tendon acquisition included an intangible asset for customer relationships with a fair value of $8.9 million. The fair value of the intangible asset for customer relationships was calculated using an income approach, under the with-and-without method, which considers opportunity costs associated with lost profits in the absence of the existing customer base. The intangible asset for customer relationships was assigned a useful life of five years. See Note 2, Changes in Business, for additional information on the acquisition of Tendon.

Foreign currency translation adjustments for intangible assets subject to amortization were immaterial for all periods presented above.

Other indefinite-lived intangible assets consisted of the following:
(in thousands)May 31, 2023August 31, 2022
Trade names$53,956 $53,633 
In-process research and development2,400 2,400 
Non-compete agreements750 750 
Total$57,106 $56,783 
The change in the balance of intangible assets with indefinite lives from August 31, 2022 to May 31, 2023 was due to foreign currency translation adjustments.

Amortization expense for intangible assets was $6.6 million and $18.9 million in the three and nine months ended May 31, 2023, respectively, of which $4.7 million and $14.0 million, respectively, was recorded in cost of goods sold and $1.9 million and $4.9 million, respectively, was recorded in selling, general and administrative expenses in the condensed consolidated statements of earnings. The Company recorded immaterial amortization expense for intangible assets in the three and nine months ended May 31, 2022. Estimated amounts of amortization expense for intangible assets for the next five years are as follows:
(in thousands)
Remainder of 2023
$6,584 
202425,607 
202523,991 
202622,562 
202722,562