Goodwill and Other Intangible Assets

12 Months Ended

Aug. 25, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

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 25, 2018 and August 26, 2017 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 as well as changes to acquisition purchase allocations that had not been finalized as of the end of the prior fiscal year:



Year ended	August 25, 2018		Weighted Average Life in Years	August 26, 2017		Weighted Average Life in Years
Goodwill	$	21,500	N/A	$	55,302	N/A
Customer contracts	11,707		14.9	43,369		14.5
Other intangible assets	906		6.1	2,779		4.7

Total intangible assets and goodwill acquired	$	34,113		$	101,450

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 25, 2018, August 26, 2017 or August 27, 2016.

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



Balance as of August 27, 2016	$	320,641
Goodwill recorded during the period	55,302
Other	167

Balance as of August 26, 2017	$	376,110
Goodwill recorded during the period	21,500
Other	(188		)

Balance as of August 25, 2018	$	397,422

As of August 25, 2018, the Company has allocated $385.8 million, $11.0 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 25, 2018
Customer contracts	$	220,303	$	152,985	$	67,318
Other intangible assets	35,030		31,444		3,586
	$	255,333	$	184,429	$	70,904
August 26, 2017
Customer contracts	$	208,711	$	141,226	$	67,485
Other intangible assets	34,249		29,990		4,259
	$	242,960	$	171,216	$	71,744

Estimated amortization expense for the five fiscal years subsequent to August 25, 2018 and thereafter, based on intangible assets, net as of August 25, 2018 is as follows (in thousands):



2019	13,407
2020	11,551
2021	9,669
2022	7,693
2023	6,446
Thereafter	22,138
Total estimated amortization expense	$	70,904

- 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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