Deferred Costs, Capitalized, Prepaid, and Other Assets

12 Months Ended

Aug. 31, 2024

Other assets as of August 31, 2024 and 2023, are as follows:


	2024		2023
	(Dollars in thousands)
Goodwill	$	179,976	$	179,976
Customer lists, trademarks and other intangible assets	42,105		46,980
Notes receivable (Note 3)	94,325		76,919
Long-term derivative assets (Note 15)	2,853		1,119
Prepaid pension and other benefits (Note 13)	75,935		78,819
Capitalized major maintenance	223,119		289,377
Cash value life insurance	152,772		134,126
Operating lease right of use assets (Note 19)	218,844		254,844
Other	58,041		68,364
Total other assets	$	1,047,970	$	1,130,524

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.

There were no changes in the net carrying amount of goodwill during fiscal 2024 or fiscal 2023.

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, 2024, 2023 or 2022. 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, 2024						August 31, 2023
	Carrying Amount		Accumulated Amortization		Net		Carrying Amount		Accumulated Amortization		Net
	(Dollars in thousands)
Customer lists	$	86,389	$	(46,480)	$	39,909	$	85,341	$	(41,374)	$	43,967
Trademarks and other intangible assets	11,051		(8,855)		2,196		11,332		(8,319)		3,013
Total intangible assets	$	97,440	$	(55,335)	$	42,105	$	96,673	$	(49,693)	$	46,980

Intangible asset amortization expense for the years ended August 31, 2024, 2023 and 2022, was $6.9 million, $6.7 million and $6.8 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for future years is as follows:


	(Dollars in thousands)
2025	$	6,694
2026	6,513
2027	6,458
2028	6,341
2029	4,706
Thereafter	11,393
Total	$	42,105

Capitalized Major Maintenance

Activity related to capitalized major maintenance costs at our refineries for the years ended August 31, 2024, 2023 and 2022, is summarized below:


	Balance at Beginning of Year		Cost Deferred		Amortization		Balance at End of Year
	(Dollars in thousands)
2024	$	289,377	$	21,909	$	(88,167)	$	223,119
2023	147,521		216,762		(74,906)		289,377
2022	196,641		25,401		(74,521)		147,521

Other Current Assets

Other current assets as of August 31, 2024 and 2023, are as follows:


	2024		2023
	(Dollars in thousands)
Short-term investments	$	500,921	$	—
Derivative assets (Note 15)	177,111		320,119
Margin and related deposits	176,821		342,872
Prepaid expenses	202,392		149,682
Supplier advance payments	133,678		136,304
Restricted cash (Note 1)	78,997		79,301
Other	26,666		14,095
Total other current assets	$	1,296,586	$	1,042,373

Short-Term Investments

Our short-term investments balance is comprised of time deposits with a maturity of greater than 90 days and less than 12 months at the date of acquisition.

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.

Prepaid Expenses and Supplier Advance Payments

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