Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS

During 2011, the Company recorded an increase in goodwill relating to the acquisition of G.A.M. as discussed in Note 3, Acquisitions and Dispositions. The Company recorded no impairment charges for goodwill for the years ended August 31, 2011 and 2009. During the year ended August 31, 2010, the Company recorded goodwill impairment charges of $2.8 million primarily due to the exit of the joist and deck business. Other changes in goodwill balances relate to translation adjustments relating to goodwill recorded at international divisions.

The following intangible assets subject to amortization are included within other assets on the consolidated balance sheets as of August 31:


	2011						2010
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
(in thousands)	Amount		Amortization		Net		Amount		Amortization		Net

Customer base	$	34,128	$	12,714	$	21,414	$	56,423	$	17,453	$	38,970
Non-competition agreements		4,183		3,281		902		9,984		7,211		2,773
Favorable land leases		7,063		521		6,542		5,728		388		5,340
Brand name		4,207		803		3,404		1,509		557		952
Other		101		25		76		265		18		247

Total	$	49,682	$	17,344	$	32,338	$	73,909	$	25,627	$	48,282

Excluding goodwill, there are no other significant intangible assets with indefinite lives. Amortization expense for intangible assets for the years ended August 31, 2011, 2010, and 2009 was $9.9 million, $11.2 million, and $15.5 million, respectively. At August 31, 2011, the weighted average remaining useful lives of these intangible assets, excluding the favorable land leases in Poland, were five years. The weighted average lives of the favorable land leases were 78 years. Estimated amounts of amortization expense for the next five years are as follows:


Year	(in thousands)

2012	$	5,981
2013		4,954
2014		4,898
2015		4,845
2016		3,210

- 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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