Intangible Assets And Goodwill

12 Months Ended

Aug. 31, 2017

Acquired License Rights For Intellectual Property [Abstract]

4.INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Our intangible assets were comprised of the following (in thousands):



		Gross Carrying		Accumulated		Net Carrying
AUGUST 31, 2017		Amount		Amortization		Amount
Definite-lived intangible assets:
License rights	$	27,750	$	(17,802)	$	9,948
Acquired content		62,094		(43,864)		18,230
Customer lists		20,092		(16,935)		3,157
Acquired technology		3,568		(2,136)		1,432
Trade names		2,036		(1,163)		873
Non-compete agreements and other		758		(104)		654
		116,298		(82,004)		34,294
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	139,298	$	(82,004)	$	57,294

AUGUST 31, 2016
Definite-lived intangible assets:
License rights	$	27,000	$	(16,790)	$	10,210
Acquired content		58,564		(42,175)		16,389
Customer lists		16,827		(16,529)		298
Acquired technology		2,049		(2,049)		-
Trade names		1,250		(951)		299
		105,690		(78,494)		27,196
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	128,690	$	(78,494)	$	50,196

Our intangible assets are amortized over the estimated useful life of the asset. The range of remaining estimated useful lives and weighted-average amortization period over which we are amortizing the major categories of definite-lived intangible assets at August 31, 2017 were as follows:


Category of Intangible Asset	Range of Remaining Estimated Useful Lives	Weighted Average Original Amortization Period

License rights	5 to 9 years	30 years
Acquired content	2 to 9 years	25 years
Customer lists	1 to 10 years	12 years
Acquired technology	3 years	3 years
Trade names	1 to 5 years	5 years
Non-compete agreements and other	1 to 10 years	4 years

Our aggregate amortization expense from definite-lived intangible assets totaled $3.5 million, $3.3 million, and $3.7 million for the fiscal years ended August 31, 2017, 2016, and 2015. Amortization expense from our intangible assets over the next five years is expected to be as follows (in thousands):



YEAR ENDING
AUGUST 31,
2018	$	5,368
2019		4,790
2020		4,324
2021		3,809
2022		3,498

Goodwill

Activity in our consolidated goodwill was as follows during fiscal 2017 and 2016 (in thousands):



Balance at August 31, 2015	$	19,903
Accumulated impairments		-
Balance at August 31, 2016		19,903
Acquisition of RGP (Note 2)		1,232
Acquisition of Jhanna (Note 2)		3,085
Accumulated impairments		-
Balance at August 31, 2017	$	24,220

We allocated the goodwill generated from our fiscal 2017 business acquisitions to our operating segments based on their relative fair values as shown below (in thousands):



				Allocated
AUGUST 31,		2016		Goodwill		2017
Direct offices	$	10,790	$	2,592	$	13,382
Strategic markets		2,930		513		3,443
Education practice		2,176		154		2,330
International licensees		4,007		1,058		5,065
	$	19,903	$	4,317	$	24,220

- 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.

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