Goodwill and Other Intangible Assets

12 Months Ended

Aug. 26, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Other Intangible Assets

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 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 fiscal 2023, 2022 and 2021.

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


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
Goodwill recorded during the period		190,777
Other		(136	)
Balance as of August 26, 2023	$	647,900

As of August 26, 2023, the Company has allocated $636.4 million, $10.9 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 26, 2023
Customer contracts	$	315,448	$	211,996	$	103,452
Software		80,538		45,117		35,421
Other intangible assets		43,598		36,853		6,745
	$	439,584	$	293,966	$	145,618
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

Estimated amortization expense for the five fiscal years subsequent to August 26, 2023 and thereafter, based on intangible assets, net as of August 26, 2023 is as follows (in thousands):


2024	$	26,507
2025		24,578
2026		21,731
2027		15,106
2028		13,561
Thereafter		44,135
Total estimated amortization expense	$	145,618