Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company completed its annual impairment analysis for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2023. 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, 2023 and 2022 (in millions):


	EMS		DMS		Total
Balance as of August 31, 2021	$	74	$	641	$	715
Acquisitions and adjustments	6		1		7
Change in foreign currency exchange rates	(1)		(17)		(18)
Balance as of August 31, 2022	79		625		704
Acquisitions and adjustments	—		24		24
Change in foreign currency exchange rates	1		9		10
Goodwill classified as held for sale	—		(117)		(117)
Balance as of August 31, 2023	$	80	$	541	$	621

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, 2023				August 31, 2022
	Gross Carrying Amount(1)		Accumulated Impairment		Gross Carrying Amount		Accumulated Impairment
Goodwill	$	1,641	$	1,020	$	1,724	$	1,020

(1)Excludes $117 million of goodwill classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information.

The following table presents the Company’s total purchased intangible assets as of August 31, 2023 and 2022 (in millions):


	Weighted Average Amortization Period (in years)	August 31, 2023						August 31, 2022
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contractual agreements and customer relationships	12	$	320	$	(251)	$	69	$	302	$	(231)	$	71
Intellectual property	9	198		(177)		21		198		(173)		25
Finite-lived trade names	Not applicable	79		(78)		1		78		(67)		11
Trade names	Indefinite	51		—		51		51		—		51
Total intangible assets	11	$	648	$	(506)	$	142	$	629	$	(471)	$	158

Intangible asset amortization for fiscal years 2023, 2022 and 2021 was approximately $33 million, $34 million and $47 million, respectively. The estimated future amortization expense is as follows (in millions):


Fiscal Year Ended August 31,
2024	$	20
2025	17
2026	14
2027	14
2028	12
Thereafter	14
Total	$	91