Deferred Costs, Capitalized, Prepaid, and Other Assets

12 Months Ended

Aug. 31, 2021

Other assets as of August 31, 2021 and 2020, are as follows:


	2021		2020
	(Dollars in thousands)
Goodwill	$	171,601	$	172,404
Customer lists, trademarks and other intangible assets	58,395		65,025
Notes receivable (Note 3)	73,713		109,145
Long-term derivative assets (Note 15)	21,567		21,157
Prepaid pension and other benefits (Note 13)	119,825		106,209
Capitalized major maintenance	196,641		228,511
Cash value life insurance	147,682		130,673
Operating lease right of use assets (Note 19)	253,451		257,834
Other	55,333		48,471
Total other assets	$	1,098,208	$	1,139,429

Goodwill and Other Intangible Assets

Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is assessed for impairment on an annual basis as of July 31, either by first assessing qualitative factors to determine whether a quantitative goodwill impairment test is necessary or by proceeding directly to the quantitative test. The quantitative test may be required more frequently if triggering events or other circumstances occur that could indicate impairment. Goodwill is assessed for impairment at the reporting unit level, which has been determined to be our operating segments or one level below our operating segments in certain instances.

Changes in the net carrying amount of goodwill for the year ended August 31, 2021, are included in the table below. There were no changes in the net carrying amount of goodwill for the year ended August 31, 2020.


	Energy		Ag		Corporate and Other		Total
	(Dollars in thousands)
Balances, August 31, 2020	$	552	$	161,278	$	10,574	$	172,404
Goodwill disposed of during the period	—		(803)		—		(803)


Balances, August 31, 2021	$	552	$	160,475	$	10,574	$	171,601

No goodwill has been allocated to our Nitrogen Production or Foods segments, which each consist of a single investment accounted for under the equity method.

No goodwill impairments were identified as a result of our annual goodwill analyses performed as of July 31, 2021 or 2020. However, as a result of our annual goodwill impairment analyses performed as of July 31, 2019, we recorded a goodwill impairment charge of $27.4 million associated with a reporting unit in our Ag segment. The impairment charge primarily resulted from changing market dynamics that reduced future profitability within the reporting unit, as well as strategy changes and the challenging economic environment in the agriculture industry. The impairment charge was recorded in marketing, general and administrative expenses in the Consolidated Statement of Operations for the year ended August 31, 2019. Management will continue to monitor the results and projected cash flows for each of our businesses to assess whether any reserves or impairments may be necessary in the future, particularly for our businesses that have experienced or could experience substantial reductions in demand or price declines associated with the COVID-19 pandemic or other factors.

Intangible assets subject to amortization primarily include customer lists, trademarks and noncompete agreements, and are amortized over their respective useful lives (ranging from two to 30 years). We have no material intangible assets with indefinite useful lives. All long-lived assets, including other identifiable intangible assets, are also assessed for impairment in accordance with U.S. GAAP and evaluated for impairment whenever triggering events or other circumstances indicate the carrying amount of an asset group or reporting unit may not be recoverable. Information regarding intangible assets is as follows:


	August 31, 2021						August 31, 2020
	Carrying Amount		Accumulated Amortization		Net		Carrying Amount		Accumulated Amortization		Net
	(Dollars in thousands)
Customer lists	$	84,565	$	(29,254)	$	55,311	$	84,895	$	(23,770)	$	61,125
Trademarks and other intangible assets	10,425		(7,341)		3,084		10,735		(6,835)		3,900
Total intangible assets	$	94,990	$	(36,595)	$	58,395	$	95,630	$	(30,605)	$	65,025

Intangible asset amortization expense for the years ended August 31, 2021, 2020 and 2019, was $6.9 million, $7.3 million and $5.3 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for future years is as follows:


	(Dollars in thousands)
2022	$	6,701
2023	6,607
2024	6,557
2025	6,340
2026	6,159
Thereafter	25,945
Total	$	58,309

Capitalized Major Maintenance

Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2021, 2020 and 2019, is summarized below:


	Balance at Beginning of Year		Cost Deferred		Amortization		Balance at End of Year
	(Dollars in thousands)
2021	$	228,511	$	41,899	$	(73,769)	$	196,641
2020	286,890		14,496		(72,875)		228,511
2019	130,780		224,406		(68,296)		286,890

Other Current Assets

Other current assets as of August 31, 2021 and 2020, are as follows:


	2021		2020
	(Dollars in thousands)
Derivative assets (Note 15)	$	559,056	$	371,195
Margin and related deposits	336,397		194,097
Supplier advance payments	194,706		198,699
Restricted cash	129,325		76,119
Other	170,749		177,378
Total other current assets	$	1,390,233	$	1,017,488

Margin and Related Deposits

Many of our derivative contracts with futures and options brokers require us to make margin deposits of cash or other assets. Subsequent margin deposits may also be necessary when changes in commodity prices result in a loss on the contract value to comply with applicable regulations. Our margin and related deposit assets are generally held in separate accounts to

support the associated derivative contracts and may be used to fund or partially fund the settlement of those contracts as they expire. Similar to our derivative financial instruments, margin and related deposits are reported on a gross basis.

Supplier Advance Payments

Supplier advance payments are typically for periods less than 12 months and primarily include amounts paid for grain purchases from suppliers and amounts paid to crop nutrient and crop protection product suppliers to lock in future supply, pricing and discounts.