Goodwill and Other Intangible Assets

12 Months Ended

Aug. 31, 2024

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 during the fourth quarter of fiscal year 2024. The quantitative assessment was performed, and the Company determined that the fair values of the reporting units exceeded the carrying values and that no impairment existed as of the date of the impairment analysis. In connection with the divestiture of the Company’s Mobility Business, the Company performed an impairment analysis for goodwill recorded within the reporting unit impacted by the divestiture and the indefinite-lived (“Green Point”) trade name during the second quarter of fiscal year 2024. See Note 17 – “Business Acquisitions and Divestitures” for additional information.

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, 2024 and 2023 (in millions):

	EMS		DMS		Total
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
Acquisitions and adjustments	—		34		34
Change in foreign currency exchange rates	—		6		6
Balance as of August 31, 2024	$	80	$	581	$	661

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, 2024				August 31, 2023
	Gross Carrying Amount		Accumulated Impairment		Gross Carrying Amount(1)		Accumulated Impairment
Goodwill	$	1,681	$	1,020	$	1,641	$	1,020

(1)Excludes $117 million of goodwill classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information.

The following table presents the Company’s total purchased intangible assets as of August 31, 2024, and 2023 (in millions):

	Weighted Average Amortization Period (in years)	August 31, 2024						August 31, 2023
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contractual agreements and customer relationships	12	$	361	$	(270)	$	91	$	320	$	(251)	$	69
Intellectual property	9	198		(181)		17		198		(177)		21
Finite-lived trade names(1)	2	130		(95)		35		79		(78)		1
Trade names(1)	Indefinite	—		—		—		51		—		51
Total intangible assets	10	$	689	$	(546)	$	143	$	648	$	(506)	$	142

(1)In the second quarter of fiscal year 2024 and in connection with the divestiture of the Mobility Business, the Company made a strategic decision that the indefinite-lived (“Green Point”) trade name acquired during the acquisition of Green Point should no longer be classified as an indefinite-lived intangible asset. See Note 17 – “Business Acquisitions and Divestitures” for additional information.

Intangible asset amortization for fiscal years 2024, 2023, and 2022 was approximately $40 million, $33 million, and $34 million, respectively. The estimated future amortization expense is as follows (in millions):

Fiscal Year Ended August 31,
2025	$	47
2026	27
2027	18
2028	16
2029	9
Thereafter	26
Total	$	143