GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Jul. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

In connection with the application of pushdown accounting, the Company recorded intangible assets for goodwill, customer relationships and tradenames. There were no indicators of impairment of goodwill and other intangible assets during the Successor period. A reconciliation of the change in the carrying amount of goodwill by reportable segment is as follows:

	Supply Chain
Balance at May 1, 2023 (Successor)
Application of pushdown accounting(a)	$	22,785
Balance at July 31, 2023 (Successor)
Gross goodwill	22,785
Accumulated impairments	—
Net goodwill	$	22,785

(a) Related to the Exchange Transaction with Steel Holdings. See Note 3 - "Exchange Transaction" for further details.

A summary of Other intangible assets, net is as follows:

	Successor
	July 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	25,000	$	911	$	24,089
Trade name	10,500		—		10,500
Total	$	35,500	$	911	$	34,589

The trade name intangible asset has an indefinite useful life. Customer relationships are amortized on a straight-line basis. Amortization expense related to intangible assets was $0.9 million for the fiscal year ended July 31, 2023. The Exchange Transaction closed on May 1, 2023, and as such, there was no intangible assets or related amortization expense for the fiscal year ended July 31, 2022.

Based on gross carrying amounts at July 31, 2023, the Company's estimate of amortization expense for each of the five succeeding years and thereafter is as follows:

	Fiscal Year Ending July 31,
	2024		2025		2026		2027		2028		Thereafter
Estimated amortization expense	$	3,555	$	3,571	$	3,571	$	3,571	$	3,571	$	6,250