XML 74 R14.htm IDEA: XBRL DOCUMENT
v3.19.3

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Aug. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 6. Goodwill, Intangible Assets and Long-Lived Assets Changes in the gross carrying value of goodwill and intangible assets result from changes in foreign currency exchange rates, business acquisitions, divestitures and impairment charges. The changes in the carrying amount of goodwill for the years ended August 31, 2019 and 2018 by operating segment are as follows (in thousands):
|  | Industrial Tools & Services |  | Other |  | Total
Balance as of August 31, 2017 |  | $ | 238,707 |  |  | $ | 33,712 |  |  | $ | 272,419 |
Business acquisitions |  | 12,441 |  |  | — |  |  | 12,441 |
Impact of changes in foreign currency rates |  | (2,443 | ) |  | (2,285 | ) |  | (4,728 | )
Balance as of August 31, 2018 |  | 248,705 |  |  | 31,427 |  |  | 280,132 |
Purchase accounting adjustments |  | 253 |  |  | — |  |  | 253 |
Impairment charge |  | — |  |  | (13,678 | ) |  | (13,678 | )
Impact of changes in foreign currency rates |  | (6,085 | ) |  | (207 | ) |  | (6,292 | )
Balance as of August 31, 2019 |  | $ | 242,873 |  |  | $ | 17,542 |  |  | $ | 260,415 |
The changes in the carrying amount of goodwill included within "Assets from discontinued operations" on the Consolidated Balance Sheets for the years ended August 31, 2019 and 2018 are as follows (in thousands):
Balance as of August 31, 2017 |  | $ | 257,662 |
Impairment charge |  | (21,227 | )
Impact of changes in foreign currency rates |  | (2,655 | )
Balance as of August 31, 2018 |  | 233,780 |
Impairment charge |  | (209,489 | )
Impact of changes in foreign currency rates |  | (7,429 | )
Balance as of August 31, 2019 |  | $ | 16,862 |
The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands):
|  | Weighted Average Amortization Period (Year) |  | August 31, 2019 |  | August 31, 2018
|  | Gross |  | Accumulated Amortization |  | Net Book Value |  | Gross |  | Accumulated Amortization |  | Net Book Value
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 14 |  | $ | 126,229 |  |  | $ | 96,817 |  |  | $ | 29,412 |  |  | $ | 128,561 |  |  | $ | 84,029 |  |  | $ | 44,532 |
Patents |  | 12 |  | 13,227 |  |  | 12,276 |  |  | 951 |  |  | 13,324 |  |  | 11,915 |  |  | 1,409 |
Trademarks and tradenames |  | 16 |  | 4,513 |  |  | 2,921 |  |  | 1,592 |  |  | 4,275 |  |  | 2,826 |  |  | 1,449 |
Non-compete agreements & other |  | 3 |  | 4,835 |  |  | 4,835 |  |  | — |  |  | 4,942 |  |  | 4,813 |  |  | 129 |
Indefinite lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradenames |  | N/A |  | 20,420 |  |  | — |  |  | 20,420 |  |  | 24,138 |  |  | — |  |  | 24,138 |
|  |  |  | $ | 169,224 |  |  | $ | 116,849 |  |  | $ | 52,375 |  |  | $ | 175,240 |  |  | $ | 103,583 |  |  | $ | 71,657 |
The Company estimates that amortization expense for future years is estimated to be $7.6 million in fiscal year 2020, $6.7 million in fiscal 2021, $5.9 million in fiscal 2022, $4.4 million in fiscal 2023, $2.7 million in fiscal 2024 and $4.7 million in aggregate thereafter. The future amortization expense amounts represent estimates and may be impacted by future acquisitions, divestitures or changes in foreign currency exchange rates, among other causes. Fiscal 2019 Impairment Charges During fiscal 2019, within the Other segment, the Company recognized a $13.7 million Goodwill impairment charge related to Cortland U.S. in conjunction with triggering events identified during the fiscal year. In the fourth quarter of fiscal 2019, the Company's branding strategy was revised such that two secondary tradenames previously considered to have indefinite lives are to be phased out and re-branded within 12-15 months. As such, the Company recorded an impairment & divestiture charge of $2.6 million based on the estimated remaining fair value of the respective tradenames. In addition, based on restructuring actions taken in the fourth quarter related to the North America Services operations, the Company concluded that the fair value of a customer relationship intangible was less than the current net book value, and therefore, a $6.2 million impairment & divestiture charge was recorded. The tradename and customer relationships impairments both related to assets within the IT&S segment.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration