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Goodwill and Other Intangible Assets
 12 Months Ended
Aug. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill
The Company recorded goodwill on March 4, 2024 incident to its acquisition of Theron. At the time of acquisition a fair value study was conducted to determine the goodwill created as part of the transaction.

The following table summarizes the changes in the carrying amounts of goodwill by segment (in thousands):
AmericasEIMEAAsia-PacificTotal
Balance as of August 31, 2022$85,402 8,569 1,209 95,180 
Translation adjustments34 291 — 325 
Balance as of August 31, 202385,436 8,860 1,209 95,505 
Goodwill incident to acquisition1,481 — — 1,481 
Translation adjustments(152)151 — (1)
Balance as of August 31, 2024$86,765 $9,011 $1,209 $96,985 
During the second quarter of fiscal year 2024, the Company performed its annual goodwill impairment test. The annual goodwill impairment test was performed at the reporting unit level as of the Company’s most recent goodwill impairment testing date, December 1, 2023. The Company performed a quantitative assessment to determine whether the fair value of any of its reporting units was less than each reporting unit’s carrying amount. The Company determined the fair value of its reporting units by following the income approach, which uses a discounted cash flow methodology. The discounted cash flow methodology bases the fair value of each reporting unit on the present value of its estimated future cash flows. The discounted cash flow methodology also requires that management 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 forecast of future cash flows was primarily 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 management’s estimate of the current weighted-average cost of capital for each reporting unit. As these assumptions are largely unobservable, the estimated fair values fall within Level 3 of the fair value hierarchy. Based on 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, 2023. In addition, the Company concluded that 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, 2023 through August 31, 2024. 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 include the Spot Shot, Carpet Fresh, 1001, EZ REACH and GT85 trade names at both August 31, 2024 and 2023. In addition, intangible assets related to customer relationships and a non-compete agreement were acquired in connection with the Company’s purchase of Theron during the fiscal year ended August 31, 2024. All of these assets are included in other intangible assets, net in the Company’s consolidated balance sheets. The weighted-average useful life of the customer relationships and non-compete agreement acquired from Theron is 14.80 years.
The following table summarizes the definite-lived intangible assets and the related accumulated amortization (in thousands):
August 31,
2024		August 31,
2023
Gross carrying amount$35,904 $35,877 
Definite-lived intangible assets acquired2,959— 
Accumulated amortization(32,641)(31,207)
Net carrying amount$6,222 $4,670 
There has been no impairment charge for the period ended August 31, 2024 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 are summarized below (in thousands):
AmericasEIMEAAsia-PacificTotal
Balance as of August 31, 2022$4,437 $1,151 $— $5,588 
Amortization expense$(813)$(192)$— $(1,005)
Translation adjustments$— $87 $— $87 
Balance as of August 31, 2023$3,624 $1,046 $— $4,670 
Definite-lived intangible assets acquired$2,959 $— $— $2,959 
Amortization expense$(905)$(201)$— $(1,106)
Translation adjustments$(324)$23 $— $(301)
Balance as of August 31, 2024$5,354 $868 $— $6,222 
The estimated amortization expense for the Company’s definite-lived intangible assets is not significant in any future individual fiscal year.