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Goodwill and Other Intangible Assets | 6 Months Ended
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Feb. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill, Intangible Assets and Long-Lived Assets The changes in the carrying value of goodwill for the six months ended February 28, 2017 are as follows (in thousands):
| Industrial |  | Energy |  | Engineered Solutions |  | Total
Balance as of August 31, 2016 | $ | 101,739 |  |  | $ | 187,321 |  |  | $ | 230,216 |  |  | $ | 519,276 |
Purchase accounting adjustments | (59 | ) |  | 2,320 |  |  | — |  |  | 2,261 |
Impact of changes in foreign currency rates | (1,812 | ) |  | (4,947 | ) |  | (5,700 | ) |  | (12,459 | )
Balance as of February 28, 2017 | $ | 99,868 |  |  | $ | 184,694 |  |  | $ | 224,516 |  |  | $ | 509,078 |
The gross carrying value and accumulated amortization of the Company’s other intangible assets are as follows (in thousands):
|  |  | February 28, 2017 |  | August 31, 2016
| Weighted Average Amortization Period (Years) |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Book Value
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships | 15 |  | $ | 287,584 |  |  | $ | 171,853 |  |  | $ | 115,731 |  |  | $ | 292,671 |  |  | $ | 166,252 |  |  | $ | 126,419 |
Patents | 11 |  | 29,992 |  |  | 23,047 |  |  | 6,945 |  |  | 30,296 |  |  | 22,233 |  |  | 8,063 |
Trademarks and tradenames | 18 |  | 21,200 |  |  | 8,503 |  |  | 12,697 |  |  | 21,283 |  |  | 7,936 |  |  | 13,347 |
Other intangibles | 3 |  | 6,506 |  |  | 5,950 |  |  | 556 |  |  | 6,627 |  |  | 5,890 |  |  | 737 |
Indefinite lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Tradenames | N/A |  | 89,630 |  |  | — |  |  | 89,630 |  |  | 90,909 |  |  | — |  |  | 90,909 |
|  |  | $ | 434,912 |  |  | $ | 209,353 |  |  | $ | 225,559 |  |  | $ | 441,786 |  |  | $ | 202,311 |  |  | $ | 239,475 |
The Company estimates that amortization expense will be $10.0 million for the remaining six months of fiscal 2017. Amortization expense for future years is estimated to be: $19.9 million in fiscal 2018, $19.3 million in 2019, $18.7 million in fiscal 2020, $17.8 million in fiscal 2021, $15.8 million in fiscal 2022 and $34.4 million thereafter. The future amortization expense amounts represent estimates and may be impacted by future acquisitions, divestitures or changes in foreign currency exchange rates. Fiscal 2016 Interim Impairment Charge The prolonged unfavorable conditions in the global oil & gas markets, including additional cuts in projected capital spending by energy customers, reduced exploration, drilling and commissioning activities and excess capacity in the industry were expected to have an adverse impact on the future financial results of the Cortland and Viking businesses. Accordingly, during the second quarter of fiscal 2016, the Company recognized a $140.9 million impairment charge (as a result of lower projected future sales and profits) related to the Cortland and Viking businesses. Additionally, weakness in off-highway vehicle and agricultural markets, coupled with challenging overall industrial fundamentals, reductions in OEM customer build rates and production schedules and delays in the start of production by certain European OEMs for new or updated design models resulted in reduced sales and profitability of the maximatecc business. As a result of lower projected sales and profits, during the second quarter of fiscal 2016, the Company recognized a $45.7 million impairment charge related to the maximatecc business. A summary of the second quarter fiscal 2016 impairment charge by reporting unit is as follows (in thousands):
| Cortland |  | Viking |  | maximatecc |  | Total
Goodwill | $ | 34,502 |  |  | $ | 39,099 |  |  | $ | 44,521 |  |  | $ | 118,122 |
Indefinite lived intangible assets | 2,211 |  |  | 13,289 |  |  | 1,153 |  |  | 16,653 |
Amortizable intangible assets | — |  |  | 27,952 |  |  | — |  |  | 27,952 |
Fixed assets | — |  |  | 23,784 |  |  | — |  |  | 23,784 |
| $ | 36,713 |  |  | $ | 104,124 |  |  | $ | 45,674 |  |  | $ | 186,511 |

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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 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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