Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2024

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 2024, 2023 and 2022.

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


Balance as of August 27, 2022	$	457,259
Purchase price adjustments recorded during the period		190,777
Other		(136	)
Balance as of August 26, 2023	$	647,900
Purchase price adjustments recorded during the period		900
Other		50
Balance as of August 31, 2024	$	648,850

As of August 31, 2024, the Company has allocated $637.4 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 Consolidated Balance Sheets as of August 31, 2024 and August 26, 2023 are as follows (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
August 31, 2024
Customer contracts	$	314,446	$	228,456	$	85,990
Software		81,482		51,023		30,459
Other intangible assets		39,826		36,276		3,550
	$	435,754	$	315,755	$	119,999
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

Estimated amortization expense for the five fiscal years subsequent to August 31, 2024 and thereafter, based on intangible assets, net as of August 31, 2024 are as follows (in thousands):


2025	$	21,991
2026		19,296
2027		15,388
2028		13,668
2029		12,003
Thereafter		37,653
Total estimated amortization expense	$	119,999