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Goodwill And Other Intangible Assets | 6 Months Ended
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Feb. 29, 2020
Goodwill And Other Intangible Assets [Abstract] |
Goodwill And Other Intangible Assets | Note 5. Goodwill and Other Intangible Assets Goodwill The following table summarizes the changes in the carrying amounts of goodwill by segment (in thousands):
| Americas |  | EMEA |  | Asia-Pacific |  | Total
Balance as of August 31, 2019 | $ | 85,420 |  | $ | 8,717 |  | $ | 1,210 |  | $ | 95,347
Translation adjustments |  | 24 |  |  | 209 |  |  | - |  |  | 233
Balance as of February 29, 2020 | $ | 85,444 |  | $ | 8,926 |  | $ | 1,210 |  | $ | 95,580
During the second quarter of fiscal year 2020, the Company performed its annual goodwill impairment test. The annual goodwill impairment test was performed at the reporting unit level as required by the authoritative guidance as of the Company’s most recent goodwill impairment testing date, December 1, 2019. In accordance with ASC 350-20, “Goodwill”, the Company performed a quantitative assessment for each of its reporting units to determine whether the fair value of any of the reporting units were less than their carrying amounts. The Company determined the fair value of its reporting units in the analysis by following the income approach which uses a discounted cash flow methodology. When using the discounted cash flow methodology, the fair value of each of the reporting units is based on the present value of the estimated future cash flows of each of the respective reporting units. The discounted cash flow methodology also requires management to make assumptions about certain key inputs in the estimated cash flows, including long-term sales forecasts or growth rates, terminal growth rates and discount rates, all of which are inherently uncertain. The Company determined that a discount rate of 7% and a terminal growth rate of 2% was appropriate to use in the analysis for all of its reporting units. The forecast of future cash flows was based on historical data and management’s best estimates of sales growth rates and operating margins for each reporting unit for the next five fiscal years. The discount rate used was based on the current weighted-average cost of capital for the Company. As these assumptions are largely unobservable, the estimate of fair value analysis falls within Level 3 of the fair value hierarchy. Based on the results of the quantitative analysis, the Company determined that the estimated fair value of each of its reporting units significantly exceeded their respective carrying values. As a result, the Company concluded that no impairment of its goodwill existed as of December 1, 2019. 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 December 1, 2019 through February 29, 2020. To date, there have been no impairment losses identified and recorded related to the Company’s goodwill. While the Company believes that the estimates and assumptions used in its goodwill impairment test and analyses are reasonable, actual events and results could differ substantially from those included in the calculation. In the event that business conditions change in the future, the Company may be required to reassess and update its forecasts and estimates used in subsequent goodwill impairment analyses. Based on the Company’s most recent annual goodwill impairment test, the estimated fair value of each of its reporting units exceeded their respective carrying values so significantly that an impairment charge to the Company’s goodwill balances is remote, even in the event that the results used within any future analyses are significantly lower than current estimates. Definite-lived Intangible Assets The Company’s definite-lived intangible assets, which include the 2000 Flushes, Spot Shot, Carpet Fresh, 1001, EZ REACH 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):
| February 29, |  | August 31,
| 2020 |  | 2019
Gross carrying amount | $ | 36,037 |  | $ | 35,531
Accumulated amortization |  | (26,562) |  |  | (24,879)
Net carrying amount | $ | 9,475 |  | $ | 10,652
There has been no impairment charge for the six months ended February 29, 2020 and there were no indicators of impairment identified 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 for the six months ended February 29, 2020 are summarized below (in thousands):
| Americas |  | EMEA |  | Asia-Pacific |  | Total
Balance as of August 31, 2019 | $ | 8,401 |  | $ | 2,251 |  | $ | - |  | $ | 10,652
Amortization expense |  | (1,121) |  |  | (183) |  |  | - |  |  | (1,304)
Translation adjustments |  | - |  |  | 127 |  |  | - |  |  | 127
Balance as of February 29, 2020 | $ | 7,280 |  | $ | 2,195 |  | $ | - |  | $ | 9,475
‎ The estimated amortization expense for the Company’s definite-lived intangible assets in future fiscal years is as follows (in thousands):
| Trade Names |  | Customer-Based
Remainder of fiscal year 2020 | $ | 830 |  | $ | 83
Fiscal year 2021 |  | 1,264 |  |  | 165
Fiscal year 2022 |  | 1,264 |  |  | 165
Fiscal year 2023 |  | 1,019 |  |  | -
Fiscal year 2024 |  | 1,013 |  |  | -
Thereafter |  | 3,672 |  |  | -
Total | $ | 9,062 |  | $ | 413
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 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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