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Goodwill and Other Intangible Assets
12 Months Ended
Aug. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The Company completed its annual impairment analysis for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2021. The qualitative assessment was performed and the Company determined that it is more likely than not that the fair values of the reporting units and the indefinite-lived intangible assets were in excess of the carrying values and that no impairment existed as of the date of the impairment analysis.
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, 2021 and 2020 (in millions):
EMS DMS Total
Balance as of August 31, 2019 $ 74  $ 548  $ 622 
Acquisitions and adjustments —  62  62 
Change in foreign currency exchange rates —  13  13 
Balance as of August 31, 2020 74  623  697 
Acquisitions and adjustments —  17  17 
Change in foreign currency exchange rates — 
Balance as of August 31, 2021 $ 74  $ 641  $ 715 
The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in millions):
  August 31, 2021 August 31, 2020
Gross
Carrying
Amount
Accumulated
Impairment
Gross
Carrying
Amount
Accumulated
Impairment
Goodwill $ 1,735  $ 1,020  $ 1,717  $ 1,020 
The following table presents the Company’s total purchased intangible assets as of August 31, 2021 and 2020 (in millions):
  Weighted
Average
Amortization
Period
(in years)
August 31, 2021 August 31, 2020
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Contractual agreements and customer relationships
12 $ 304  $ (217) $ 87  $ 302  $ (200) $ 102 
Intellectual property 8 191  (169) 22  174  (164) 10 
Finite-lived trade names Not applicable 78  (56) 22  78  (31) 47 
Trade names Indefinite 51  —  51  51  —  51 
Total intangible assets 11 $ 624  $ (442) $ 182  $ 605  $ (395) $ 210 
Intangible asset amortization for fiscal years 2021, 2020 and 2019 was approximately $47 million, $56 million and $32 million, respectively. The estimated future amortization expense is as follows (in millions):
Fiscal Year Ended August 31,
2022 $ 32 
2023 30 
2024 15 
2025 14 
2026 11 
Thereafter 29 
Total $ 131