Deferred Costs, Capitalized, Prepaid, and Other Assets

12 Months Ended

Aug. 31, 2022

Other assets as of August 31, 2022 and 2021, are as follows:


	2022		2021
	(Dollars in thousands)
Goodwill	$	179,976	$	171,601
Customer lists, trademarks and other intangible assets	53,165		58,395
Notes receivable (Note 3)	46,012		73,713
Long-term derivative assets (Note 15)	8,546		21,567
Prepaid pension and other benefits (Note 13)	74,810		119,825
Capitalized major maintenance	147,521		196,641
Cash value life insurance	128,876		147,682
Operating lease right of use assets (Note 19)	242,859		253,451
Other	92,230		55,333
Total other assets	$	973,995	$	1,098,208

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 carrying amount of goodwill for the years ended August 31, 2022 and 2021, are included in the table below.


	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
Goodwill acquired during the period	8,906		—		—		8,906
Goodwill disposed of during the period	—		(531)		—		(531)
Balances, August 31, 2022	$	9,458	$	159,944	$	10,574	$	179,976

No goodwill has been allocated to our Nitrogen Production segment, which consists of a single investment accounted for under the equity method of accounting, and allocated expenses.

No goodwill impairments were identified as a result of our annual goodwill analyses performed as of July 31, 2022, 2021 or 2020. 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.

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, 2022						August 31, 2021
	Carrying Amount		Accumulated Amortization		Net		Carrying Amount		Accumulated Amortization		Net
	(Dollars in thousands)
Customer lists	$	84,565	$	(35,280)	$	49,285	$	84,565	$	(29,254)	$	55,311
Trademarks and other intangible assets	11,902		(8,022)		3,880		10,425		(7,341)		3,084
Total intangible assets	$	96,467	$	(43,302)	$	53,165	$	94,990	$	(36,595)	$	58,395

Intangible asset amortization expense for the years ended August 31, 2022, 2021 and 2020, was $6.8 million, $6.9 million and $7.3 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for future years is as follows:


	(Dollars in thousands)
2023	$	6,730
2024	6,680
2025	6,463
2026	6,282
2027	6,226
Thereafter	20,784
Total	$	53,165

Capitalized Major Maintenance

Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2022, 2021 and 2020, is summarized below:


	Balance at Beginning of Year		Cost Deferred		Amortization		Balance at End of Year
	(Dollars in thousands)
2022	$	196,641	$	25,401	$	(74,521)	$	147,521
2021	228,511		41,899		(73,769)		196,641
2020	286,890		14,496		(72,875)		228,511

Other Current Assets

Other current assets as of August 31, 2022 and 2021, are as follows:


	2022		2021
	(Dollars in thousands)
Derivative assets (Note 15)	$	535,698	$	559,056
Margin and related deposits	390,782		336,397
Supplier advance payments	198,753		194,706
Restricted cash (Note 1)	109,517		129,325
Other	147,954		170,749
Total other current assets	$	1,382,704	$	1,390,233

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 PaymentsSupplier 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.