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Other Assets | 12 Months Ended
--- | ---
Aug. 31, 2017
Other Assets [Abstract] |
Other Assets | Other Assets Other assets as of August 31, 2017, and 2016, are as follows:
| 2017 |  | 2016
| (Dollars in thousands)
Goodwill | $ | 154,055 |  |  | $ | 160,414 |
Customer lists, trademarks and other intangible assets | 33,330 |  |  | 44,766 |
Notes receivable | 51,596 |  |  | 358,096 |
Deferred purchase price receivable | 345,655 |  |  | — |
Long-term derivative assets | 196,913 |  |  | — |
Prepaid pension and other benefits | 122,433 |  |  | 120,693 |
Capitalized major maintenance | 105,006 |  |  | 169,054 |
Cash value life insurance | 118,677 |  |  | 112,193 |
Other | 124,137 |  |  | 127,440 |
| $ | 1,251,802 |  |  | $ | 1,092,656 |
Changes in the net carrying amount of goodwill for the years ended August 31, 2017, and 2016, by segment, are as follows:
| Energy |  | Ag |  | Corporate and Other |  | Total
| (Dollars in thousands)
Balances, August 31, 2015 | $ | 552 |  |  | $ | 142,665 |  |  | $ | 6,898 |  |  | $ | 150,115 |
Goodwill acquired during the period | — |  |  | 5,726 |  |  | 4,048 |  |  | 9,774 |
Effect of foreign currency translation adjustments | — |  |  | 1,220 |  |  | — |  |  | 1,220 |
Goodwill disposed due to sale of business | — |  |  | (695 | ) |  | — |  |  | (695 | )
Balances, August 31, 2016 | $ | 552 |  |  | $ | 148,916 |  |  | $ | 10,946 |  |  | $ | 160,414 |
Effect of foreign currency translation adjustments | — |  |  | 121 |  |  | — |  |  | 121 |
Impairment | — |  |  | (5,542 | ) |  | — |  |  | (5,542 | )
Other | — |  |  | (566 | ) |  | (372 | ) |  | (938 | )
Balances, August 31, 2017 | $ | 552 |  |  | $ | 142,929 |  |  | $ | 10,574 |  |  | $ | 154,055 |
No goodwill has been allocated to our Nitrogen Production or Foods segments, which consist of investments accounted for under the equity method. All long-lived assets, including property, plant and equipment, goodwill, investments in unconsolidated affiliates and other identifiable intangible assets, are evaluated for impairment in accordance with U.S. GAAP. Goodwill is evaluated for impairment annually as of July 31. All long-lived assets, including goodwill, are also evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group or reporting unit may not be recoverable. No impairments were identified as a result of CHS’s annual goodwill analyses performed as of May 31, 2017, or July 31, 2017. See Note 1, Organization, Basis of Presentation and Significant Accounting Policies for further details related to our change in annual goodwill impairment testing. During the three months ended May 31, 2017, certain assets and liabilities associated with a disposal group in our Ag segment were classified as held for sale, including $5.5 million of goodwill allocated to the disposal group on a relative fair value basis. As a result of an impairment test performed over the disposal group, an impairment charge of $51.8 million which includes the allocated goodwill, was recorded in the reserve and impairment charges line item in the Consolidated Statements of Operations for the three and nine months ended May 31, 2017. During the fourth quarter of fiscal 2017, an additional impairment was recorded for $26.9 million based on subsequent developments and circumstances. As of August 31, 2017, the assets remaining within the disposal group primarily include property, plant and equipment of $8.2 million, inventories of $20.5 million, and accounts receivable of $6.3 million. This disposal group represents assets being sold as part of a broader asset portfolio review project. Negotiations for the sale of these assets are ongoing and we believe their sale will be consummated within the next 12 months. The held for sale assets and liabilities are recorded in other current assets and accounts payable in our Consolidated Balance Sheet as of August 31, 2017. During the year ended August 31, 2016, we had acquisitions which resulted in $9.8 million of goodwill, for which we paid cash consideration of $11.9 million. These acquisitions were not material, individually or in aggregate, to our consolidated financial statements. During the year ended August 31, 2016, we disposed of a business resulting in a reduction of $0.7 million of goodwill. Intangible assets subject to amortization primarily include customer lists, trademarks and non-compete agreements, and are amortized over their respective useful lives (ranging from 2 to 30 years). Information regarding intangible assets included in other assets on our Consolidated Balance Sheets is as follows:
| August 31, 2017 |  | August 31, 2016
| Carrying Amount |  | Accumulated Amortization |  | Net |  | Carrying Amount |  | Accumulated Amortization |  | Net
| (Dollars in thousands)
Customer lists | $ | 46,180 |  |  | $ | (14,695 | ) |  | $ | 31,485 |  |  | $ | 51,554 |  |  | $ | (15,550 | ) |  | $ | 36,004 |
Trademarks and other intangible assets | 23,623 |  |  | (21,778 | ) |  | 1,845 |  |  | 35,015 |  |  | (26,253 | ) |  | 8,762 |
Total intangible assets | $ | 69,803 |  |  | $ | (36,473 | ) |  | $ | 33,330 |  |  | $ | 86,569 |  |  | $ | (41,803 | ) |  | $ | 44,766 |
During the years ended August 31, 2017, and 2016, intangible assets acquired totaled $0.5 million and $2.8 million, respectively, and were primarily within our Ag segment. Intangible assets amortization expense for the years ended August 31, 2017, 2016, and 2015, was $4.3 million, $6.1 million and $7.3 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows:
| (Dollars in thousands)
Year 1 | $ | 3,396 |
Year 2 | 3,394 |
Year 3 | 3,152 |
Year 4 | 3,069 |
Year 5 | 2,828 |
Thereafter | 17,395 |
Total | $ | 33,234 |
The costs of turnarounds in our Energy segment are deferred when incurred and amortized on a straight-line basis over the period estimated to lapse until the next turnaround occurs, which is generally 2 to 4 years. Capitalized amounts are included in other assets on our Consolidated Balance Sheets and amortization expense related to turnaround costs is included in cost of goods sold in our Consolidated Statements of Operations. Activity related to capitalized major maintenance costs is summarized below:
| Balance at Beginning of Year |  | Cost Deferred |  | Amortization |  | Balance at End of Year
| (Dollars in thousands)
2017 | $ | 169,054 |  |  | $ | 3,010 |  |  | $ | (67,058 | ) |  | $ | 105,006 |
2016 | 241,588 |  |  | 949 |  |  | (73,483 | ) |  | 169,054 |
2015 | 67,643 |  |  | 219,898 |  |  | (45,953 | ) |  | 241,588 |

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