Goodwill And Other Intangible Assets

12 Months Ended

Aug. 31, 2016

Goodwill And Other Intangible Assets [Abstract]

Note 9 – Goodwill and Other Intangible Assets

The carrying amount of goodwill by reportable segment for the year ended August 31, 2016 and 2015 is as follows:


($ in thousands)	Irrigation		Infrastructure		Total
Balance as of August 31, 2014	$	20,293	$	16,728	$	37,021
Acquisition of Elecsys		39,986		—		39,986
Acquisition of SPF		893		—		893
Foreign currency translation		(267)		(832)		(1,099)
Balance as of August 31, 2015	$	60,905	$	15,896	$	76,801
Foreign currency translation		37		(35)		2
Balance as of August 31, 2016	$	60,942	$	15,861	$	76,803

The components of the Company’s identifiable intangible assets at August 31, 2016 and 2015 are included in the table below.


	August 31,
	2016					2015
	Weighted	Gross				Weighted	Gross
	average	carrying		Accumulated		average	carrying		Accumulated
($ in thousands)	years	amount		amortization		years	amount		amortization
Amortizable intangible assets:
Patents and developed technology	6.1	$	33,732	$	(18,893)	7.3	$	33,741	$	(16,473)
Customer relationships	6.0		19,952		(8,747)	8.0		19,958		(6,884)
Non-compete agreements	2.2		2,350		(1,450)	5.8		2,343		(1,044)
Other	9.5		239		(97)	0.3		1,010		(852)
Unamortizable intangible assets:
Tradenames	N/A		20,114		—	N/A		20,121		—
Total	5.7	$	76,387	$	(29,187)	6.7	$	77,173	$	(25,253)

Amortization expense for amortizable intangible assets was $4.7 million, $4.7 million, and $4.0 million for fiscal 2016, 2015, and 2014, respectively.

Future estimated amortization of intangible assets for the next five years is as follows:


Fiscal years	$ in thousands
2017	$	4,450
2018		4,200
2019		3,549
2020		3,142
2021		2,421
Thereafter		9,324
	$	27,086

The Company updated its impairment evaluation of goodwill and intangible assets with indefinite useful lives at August 31, 2016. No impairment losses were indicated as a result of the annual impairment testing for fiscal 2016, 2015, and 2014.

- 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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