Goodwill and Other Intangible Assets

9 Months Ended

May 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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):


	Americas		EIMEA		Asia-Pacific		Total
Balance as of August 31, 2023	$	85,436	$	8,860	$	1,209	$	95,505
Goodwill incident to acquisition	1,481		-		-		1,481
Translation adjustments	(71)		12		-		(59)
Balance as of May 31, 2024	$	86,846	$	8,872	$	1,209	$	96,927

There were no indicators of impairment identified as a result of the Company’s review of events and circumstances related to its goodwill as of May 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 May 31, 2024 and August 31, 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 nine months ended May 31, 2024. All of these assets are included in other intangible assets, net in the Company’s condensed 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):


	May 31, 2024		August 31, 2023
Gross carrying amount	$	35,862	$	35,877
Definite-lived intangible assets acquired	2,959		-
Accumulated amortization	(32,139)		(31,207)
Net carrying amount	$	6,682	$	4,670

There has been no impairment charge for the nine months ended May 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 for the nine months ended May 31, 2024 are summarized below (in thousands):


	Americas		EIMEA		Asia-Pacific	Total
Balance as of August 31, 2023	$	3,624	$	1,046	-	$	4,670
Definite-lived intangible assets acquired	2,959		-		-	2,959
Amortization expense	(656)		(150)		-	(806)
Translation adjustments	(135)		(6)		-	(141)
Balance as of May 31, 2024	$	5,792	$	890	-	$	6,682

The estimated amortization expense for the Company’s definite-lived intangible assets is not significant in any future individual fiscal year.