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GOODWILL AND OTHER INTANGIBLES | 9 Months Ended
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May 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and other intangibles | NOTE 6. GOODWILL AND OTHER INTANGIBLES Goodwill by reportable segment is detailed in the table below. During the first quarter of 2024, the Company changed its reportable segments as described in Note 1, Nature of Operations and Accounting Policies. Concurrent with the change in reportable segments, the Company reassigned goodwill to the updated reporting units using a relative fair value approach, shown below:
(in thousands) |  | North America |  | Europe |  | North America Steel Group |  | Europe Steel Group |  | Emerging Businesses Group |  | Consolidated
Goodwill, gross |  |  |  |  |  |  |  |  |  |  |  |
Balance, September 1, 2023 |  | $ | 351,441 |  |  | $ | 44,561 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 396,002 |
Segment reassignment |  | (351,441) |  |  | (44,561) |  |  | 126,915 |  |  | 4,075 |  |  | 265,012 |  |  | — |
Acquisition adjustments(1) |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,305) |  |  | (2,305) |
Foreign currency translation |  | — |  |  | — |  |  | — |  |  | 193 |  |  | 198 |  |  | 391 |
Balance, May 31, 2024 |  | — |  |  | — |  |  | 126,915 |  |  | 4,268 |  |  | 262,905 |  |  | 394,088 |
Accumulated impairment |  |  |  |  |  |  |  |  |  |  |  |
Balance, September 1, 2023 |  | (10,036) |  |  | (145) |  |  | — |  |  | — |  |  | — |  |  | (10,181) |
Segment reassignment |  | 10,036 |  |  | 145 |  |  | (9,542) |  |  | (146) |  |  | (493) |  |  | — |
Foreign currency translation |  | — |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | (7) |
Balance, May 31, 2024 |  | — |  |  | — |  |  | (9,542) |  |  | (153) |  |  | (493) |  |  | (10,188) |
Goodwill, net |  |  |  |  |  |  |  |  |  |  |  |
Balance, September 1, 2023 |  | 341,405 |  |  | 44,416 |  |  | — |  |  | — |  |  | — |  |  | 385,821 |
Segment reassignment |  | (341,405) |  |  | (44,416) |  |  | 117,373 |  |  | 3,929 |  |  | 264,519 |  |  | — |
Acquisition adjustments(1) |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,305) |  |  | (2,305) |
Foreign currency translation |  | — |  |  | — |  |  | — |  |  | 186 |  |  | 198 |  |  | 384 |
Balance, May 31, 2024 |  | $ | — |  |  | $ | — |  |  | $ | 117,373 |  |  | $ | 4,115 |  |  | $ | 262,412 |  |  | $ | 383,900 |
__________________________________ (1) Measurement period adjustments related to the 2023 acquisitions which impacted the amount of goodwill originally reported. The Company evaluated impairment indicators for the previous reporting units immediately prior to the change in reportable segments and concluded there were no indicators of impairment. Immediately after the change in reportable segments, the Company performed qualitative tests for five reporting units consisting of $285.0 million of goodwill and quantitative tests for three reporting units consisting of $100.8 million of goodwill. The results of the qualitative and quantitative tests indicated it was more likely than not that the fair value of all reporting units with goodwill exceeded their carrying values. Other indefinite-lived intangible assets consisted of the following:
(in thousands) |  | May 31, 2024 |  | August 31, 2023
Trade names |  | $ | 54,119 |  |  | $ | 54,056 |
In-process research and development |  | 2,400 |  |  | 2,400 |
Non-compete agreements |  | 750 |  |  | 750 |
Total |  | $ | 57,269 |  |  | $ | 57,206 |
The change in the balance of intangible assets with indefinite lives from August 31, 2023 to May 31, 2024 was due to foreign currency translation adjustments. Other intangible assets subject to amortization are detailed in the following table:
|  | May 31, 2024 |  | August 31, 2023
(in thousands) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Developed technologies |  | $ | 152,105 |  |  | $ | 39,160 |  |  | $ | 112,945 |  |  | $ | 150,445 |  |  | $ | 25,228 |  |  | $ | 125,217 |
Customer relationships |  | 74,671 |  |  | 13,951 |  |  | 60,720 |  |  | 74,582 |  |  | 7,606 |  |  | 66,976 |
Patents |  | 7,203 |  |  | 6,301 |  |  | 902 |  |  | 7,203 |  |  | 5,570 |  |  | 1,633 |
Perpetual lease rights |  | 6,267 |  |  | 1,012 |  |  | 5,255 |  |  | 5,984 |  |  | 910 |  |  | 5,074 |
Trade names |  | 3,366 |  |  | 1,382 |  |  | 1,984 |  |  | 3,287 |  |  | 1,129 |  |  | 2,158 |
Non-compete agreements |  | 2,300 |  |  | 1,770 |  |  | 530 |  |  | 2,300 |  |  | 1,502 |  |  | 798 |
Other |  | 224 |  |  | 138 |  |  | 86 |  |  | 224 |  |  | 125 |  |  | 99 |
Total |  | $ | 246,136 |  |  | $ | 63,714 |  |  | $ | 182,422 |  |  | $ | 244,025 |  |  | $ | 42,070 |  |  | $ | 201,955 |
The foreign currency translation adjustments for intangible assets subject to amortization were immaterial for all periods presented above. Amortization expense for intangible assets was $7.1 million and $21.6 million in the three and nine months ended May 31, 2024, respectively, of which $4.5 million and $13.9 million, respectively, was recorded in cost of goods sold and the remainder was recorded in selling, general and administrative ("SG&A") expenses in the condensed consolidated statements of earnings. 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 the remainder was recorded in SG&A expenses in the condensed consolidated statements of earnings. Estimated amounts of amortization expense for intangible assets for the next five years are as follows:
|  | (in thousands)
Remainder of 2024 |  | $ | 6,782 |
2025 |  | 26,644 |
2026 |  | 25,420 |
2027 |  | 25,323 |
2028 |  | 23,596 |

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