Goodwill and Other Intangible Assets

12 Months Ended

Aug. 29, 2020

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 29, 2020 and August 31, 2019 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 29, 2020		Weighted Average Life in Years		August 31, 2019		Weighted Average Life in Years
Goodwill	$	23,544	N/A		$	3,885	N/A
Customer contracts		12,697		14.1		1,070		10.0
Other intangible assets		594		5.3		118		3.0
Total intangible assets and goodwill acquired	$	36,835			$	5,073

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 29, 2020, August 31, 2019 and August 25, 2018.

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

Balance as of August 25, 2018	$	397,422
Goodwill recorded during the period		3,885
Other		(129	)
Balance as of August 31, 2019	$	401,178
Goodwill recorded during the period		23,544
Other		122
Balance as of August 29, 2020	$	424,844

As of August 29, 2020, the Company has allocated $413.2 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 29, 2020
Customer contracts	$	234,065	$	177,119	$	56,946
Software		66,014		39,020		26,994
Other intangible assets		35,741		34,145		1,596
	$	335,820	$	250,284	$	85,536
August 31, 2019
Customer contracts	$	221,306	$	164,718	$	56,588
Software		48,838		34,813		14,025
Other intangible assets		35,063		32,956		2,107
	$	305,207	$	232,487	$	72,720

Estimated amortization expense for the five fiscal years subsequent to August 29, 2020 and thereafter, based on intangible assets, net as of August 29, 2020 is as follows (in thousands):

2021	$	14,127
2022		12,573
2023		10,633
2024		9,367
2025		8,276
Thereafter		30,560
Total estimated amortization expense	$	85,536