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Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2017

Goodwill and Other Intangible Assets [Abstract]

7. Goodwill and Other Intangible Assets

The Company completed its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2017 and determined the fair values of the reporting units and the indefinite-lived intangible assets were substantially in excess of the carrying values and that no impairment existed as of the date of the impairment test.

	The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics
Manufacturing Services (“EMS”) and Diversified Manufacturing Services ("DMS"), during the fiscal years ended August 31,
2017 and 2016 (in thousands):

				EMS		DMS		Total
		Balance as of August 31, 2015		$	27,873	$	434,509	$	462,382
			Acquisitions and adjustments		23,690		111,417		135,107
			Change in foreign currency exchange rates		(384)		(2,332)		(2,716)
		Balance as of August 31, 2016			51,179		543,594		594,773
			Acquisitions and adjustments		―		8,186		8,186
			Change in foreign currency exchange rates		1,395		3,830		5,225
		Balance as of August 31, 2017		$	52,574	$	555,610	$	608,184

The following table is a summary of the Company's gross goodwill balances and accumulated impairments as of the

periods indicated (in thousands):

August 31, 2017

August 31, 2016

Gross

Carrying

Accumulated

Carrying

Accumulated

Amount

Impairment

Amount

Impairment

Goodwill

1,628,006

1,019,822

1,614,595

1,019,822

The following table presents the Company’s total purchased intangible assets as of August 31, 2017 and 2016 (in thousands):


		Weighted
		Average	August 31, 2017						August 31, 2016
		Amortization	Gross				Net		Gross				Net
		Period	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		(in years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Contractual agreements
	and customer relationships	11	$	265,148	$	(132,691)	$	132,457	$	250,451	$	(113,393)	$	137,058
Intellectual property		5		160,456		(131,407)		29,049		151,025		(114,219)		36,806
Finite-lived trade names		Not applicable		5,114		(5,114)		―		5,006		(5,006)		―
Trade names		Indefinite		123,090		―		123,090		123,090		―		123,090
	Total intangible assets	9	$	553,808	$	(269,212)	$	284,596	$	529,572	$	(232,618)	$	296,954

	Intangible asset amortization for fiscal years 2017, 2016 and 2015 was approximately $35.5 million, $37.1 million and
$24.4 million, respectively. The estimated future amortization expense is as follows (in thousands):

		Fiscal Year Ended August 31,		Amount
		2018		$	35,069
		2019			26,045
		2020			22,427
		2021			14,026
		2022			12,884
		Thereafter			51,063
			Total	$	161,514

- 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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