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Goodwill And Other Intangible Assets | 12 Months Ended
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Aug. 31, 2017
Goodwill And Other Intangible Assets [Abstract] |
Goodwill And Other Intangible Assets | Note 5. Goodwill and Other Intangible Assets ﻿ Acquisitions ﻿ During the first quarter of fiscal year 2015, the Company entered into an agreement by and between GT 85 Limited (“GT85”) and WD-40 Company Limited, which is the Company’s U.K. subsidiary, to acquire the GT85 business and certain of its assets for a purchase consideration of $4.1 million. Of this purchase consideration, $3.7 million was paid in cash upon completion of the acquisition (“completion”) and the remaining balance was paid in June 2015. Located in the U.K., the GT85 business was engaged in the marketing and sale of the GT85® and SG85 brands of maintenance products. This acquisition complements the Company’s maintenance products and will help to build upon its strategy to develop new product categories for WD-40 Specialist and WD-40 BIKE. ﻿ The purchase price was allocated to certain customer-related, trade name-related, and technology-based intangible assets in the amount of $1.7 million, $0.9 million, and $0.2 million, respectively. The Company began to amortize these definite-lived intangible assets on a straight-line basis over their estimated useful lives of eight, ten, and four years, respectively, in the first quarter of fiscal year 2015. The purchase price exceeded the fair value of the intangible assets acquired and, as a result, the Company recorded goodwill of $1.3 million in connection with this transaction. This acquisition did not have a material impact on the Company’s condensed consolidated financial statements, and as a result no pro forma disclosures have been presented. ﻿ Goodwill ﻿ The following table summarizes the changes in the carrying amounts of goodwill by segment (in thousands):
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﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ | Americas |  | EMEA |  | Asia-Pacific |  | Total
﻿Balance as of August 31, 2015 | $ | 85,532 |  | $ | 9,667 |  | $ | 1,210 |  | $ | 96,409
﻿Translation adjustments |  | (80) |  |  | (680) |  |  | - |  |  | (760)
﻿Balance as of August 31, 2016 |  | 85,452 |  |  | 8,987 |  |  | 1,210 |  |  | 95,649
﻿Translation adjustments |  | (4) |  |  | (48) |  |  | - |  |  | (52)
﻿Balance as of August 31, 2017 | $ | 85,448 |  | $ | 8,939 |  | $ | 1,210 |  | $ | 95,597
﻿ |  |  |  |  |  |  |  |  |  |  |
During the second quarter of fiscal year 2017, the Company performed its annual goodwill impairment test. The annual goodwill impairment test was performed at the reporting unit level, which resides at a component level below the Company’s operating segment level and for which discrete financial information is available, as required by the authoritative guidance. The Company performed a qualitative assessment of each reporting unit to determine whether it was more likely than not that the fair value of a reporting unit was less than its carrying amount. In performing this qualitative assessment, the Company assessed relevant events and circumstances that may impact the fair value and the carrying amount of each of its reporting units. Factors that were considered included, but were not limited to, the following: (1) macroeconomic conditions; (2) industry and market conditions; (3) historical financial performance and expected financial performance; (4) other entity specific events, such as changes in management or key employees; and (5) events affecting the Company’s reporting units, such as a change in the composition of net assets or any expected dispositions. Based on the results of this qualitative assessment, the Company determined that it is more likely than not that the carrying value of each of its reporting units is less than its fair value and, thus, the two-step quantitative analysis was not required. As a result, the Company concluded that no impairment of its goodwill existed as of February 28, 2017. ﻿ In addition, there were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its goodwill subsequent to February 2 8, 201 7, t he date of its most recent annual goodwill impairment test. To date, there have been no impairment losses identified and recorded related to the Company’s goodwill. ﻿ Definite-lived Intangible Assets ﻿ The Company’s definite-lived intangible assets, which include the 2000 Flushes, Spot Shot, Carpet Fresh, 1001 and GT85 trade names, the Belgium customer list, the GT85 customer relationships and the GT85 technology are included in other intangible assets, net in the Company’s condensed consolidated balance sheets. The following table summarizes the definite-lived intangible assets and the related accumulated amortization (in thousands):
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﻿ | August 31, |  | August 31,
﻿ | 2017 |  | 2016
﻿Gross carrying amount | $ | 35,891 |  | $ | 36,009
﻿Accumulated amortization |  | (19,647) |  |  | (16,818)
﻿Net carrying amount | $ | 16,244 |  | $ | 19,191
﻿ |  |  |  |  |
﻿ There has been no impairment charge for the period ended August 31, 2017 as a result of the Company’s review of events and circumstances related to its existing definite-lived intangible assets. ﻿ Changes in the carrying amounts of definite-lived intangible assets by segment are summarized below (in thousands): ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ | Americas |  | EMEA |  | Asia-Pacific |  | Total
﻿Balance as of August 31, 2015 | $ | 17,121 |  | $ | 5,840 |  | $ | - |  | $ | 22,961
﻿Amortization expense |  | (2,208) |  |  | (768) |  |  | - |  |  | (2,976)
﻿Translation adjustments |  | - |  |  | (794) |  |  | - |  |  | (794)
﻿Balance as of August 31, 2016 |  | 14,913 |  |  | 4,278 |  |  | - |  |  | 19,191
﻿Amortization expense |  | (2,207) |  |  | (672) |  |  | - |  |  | (2,879)
﻿Translation adjustments |  | - |  |  | (68) |  |  | - |  |  | (68)
﻿Balance as of August 31, 2017 | $ | 12,706 |  | $ | 3,538 |  | $ | - |  | $ | 16,244
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﻿ The estimated amortization expense for the Company’s definite-lived intangible assets in future fiscal years is as follows (in thousands):
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﻿ |  |  |  |  |  |  |  |
﻿ | Trade Names |  | Customer-Based |  | Technology
﻿Fiscal year 2018 | $ | 2,419 |  | $ | 446 |  | $ | 33
﻿Fiscal year 2019 |  | 2,414 |  |  | 259 |  |  | -
﻿Fiscal year 2020 |  | 2,019 |  |  | 165 |  |  | -
﻿Fiscal year 2021 |  | 1,230 |  |  | 165 |  |  | -
﻿Fiscal year 2022 |  | 1,229 |  |  | 165 |  |  | -
﻿Thereafter |  | 5,700 |  |  | - |  |  | -
﻿Total | $ | 15,011 |  | $ | 1,200 |  | $ | 33
﻿ |  |  |  |  |  |  |  |
Included in the total estimated future amortization expense is the amortization expense for the 1001 trade name and the GT85 intangible assets, which are based on current foreign currency exchange rates, and as a result amounts in future periods may differ from those presented due to fluctuations in those rates.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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