Goodwill and Other Intangible Assets

12 Months Ended

Aug. 27, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Other Intangible Assets

As discussed in Note 2, “Acquisitions”, when the Company acquires a business the amount assigned to the tangible assets and liabilities and intangible assets acquired is based on their respective fair values determined as of the acquisition date. The excess of the purchase price over the tangible assets and liabilities and intangible assets is recorded as goodwill. The following details the changes in the Company’s intangible assets and goodwill related to the Company’s acquisitions for the years ended August 27, 2022 and August 28, 2021 as well as the respective periods over which the assets will be amortized (in thousands, except weighted average life in years). These amounts include additional payments associated with prior year acquisitions:


Year ended	August 27, 2022		Weighted Average Life in Years		August 28, 2021		Weighted Average Life in Years
Goodwill	$	27,964	N/A		$	4,533	N/A
Customer contracts		10,450		13.8		3,219		10.0
Other intangible assets		807		6.1		179		5.0
Total intangible assets and goodwill acquired	$	39,221			$	7,931

The Company does not amortize goodwill, but it is reviewed annually or more frequently if certain indicators arise, for impairment. There were no impairment losses related to goodwill or intangible assets during the years ended August 27, 2022, August 28, 2021 and August 29, 2020.

The changes in the carrying amount of goodwill are as follows (in thousands):


Balance as of August 29, 2020	$	424,844
Goodwill recorded during the period		4,533
Other		161
Balance as of August 28, 2021	$	429,538
Goodwill recorded during the period		27,964
Other		(243	)
Balance as of August 27, 2022	$	457,259

As of August 27, 2022, the Company has allocated $445.9 million, $10.8 million and $0.6 million of goodwill to its U.S. and Canadian Rental and Cleaning, Specialty Garments and First Aid segments, respectively.

Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
August 27, 2022
Customer contracts	$	247,721	$	198,668	$	49,053
Software		75,528		41,637		33,891
Other intangible assets		37,520		35,491		2,029
	$	360,769	$	275,796	$	84,973
August 28, 2021
Customer contracts	$	237,384	$	188,255	$	49,129
Software		74,475		40,763		33,712
Other intangible assets		36,866		35,069		1,797
	$	348,725	$	264,087	$	84,638

Estimated amortization expense for the five fiscal years subsequent to August 27, 2022 and thereafter, based on intangible assets, net as of August 27, 2022 is as follows (in thousands):


2022	$	13,404
2023		11,840
2024		9,400
2025		9,385
2026		8,133
Thereafter		32,811
Total estimated amortization expense	$	84,973