Note 10 – Goodwill and Other Intangible Assets

The carrying amount of goodwill by reportable segment for the year ended August 31, 2025 and August 31, 2024 is as follows:

 

($ in thousands)

 

Irrigation

 

 

Infrastructure

 

 

Total

 

Balance as of August 31, 2023

 

 

67,371

 

 

 

15,750

 

 

 

83,121

 

FieldWise purchase accounting adjustments

 

 

1,004

 

 

 

 

 

 

1,004

 

Foreign currency translation

 

 

(23

)

 

 

92

 

 

 

69

 

Balance as of August 31, 2024

 

 

68,352

 

 

 

15,842

 

 

 

84,194

 

Foreign currency translation

 

 

24

 

 

 

241

 

 

 

265

 

Balance as of August 31, 2025

 

$

68,376

 

 

$

16,083

 

 

$

84,459

 

 

The components of the Company’s identifiable intangible assets and their weighted average remaining life at August 31, 2025 and 2024 are included in the table below.

 

 

 

August 31,

 

 

 

2025

 

 

2024

 

 

 

Weighted

 

 

Gross

 

 

 

 

 

Weighted

 

 

Gross

 

 

 

 

 

 

average

 

 

carrying

 

 

Accumulated

 

 

average

 

 

carrying

 

 

Accumulated

 

($ in thousands)

 

years

 

 

amount

 

 

amortization

 

 

years

 

 

amount

 

 

amortization

 

Definite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patents and developed technology

 

 

2.5

 

 

$

29,641

 

 

$

(26,545

)

 

 

2.9

 

 

$

29,308

 

 

$

(25,460

)

Customer relationships

 

 

6.6

 

 

 

26,056

 

 

 

(17,818

)

 

 

6.7

 

 

 

26,037

 

 

 

(16,470

)

Indefinite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradenames

 

N/A

 

 

 

11,997

 

 

 

 

 

N/A

 

 

 

11,951

 

 

 

 

Total

 

 

5.5

 

 

$

67,694

 

 

$

(44,363

)

 

 

5.6

 

 

$

67,296

 

 

$

(41,930

)

 

Amortization expense for amortizable intangible assets was $2.2 million, $2.9 million, and $2.0 million for fiscal 2025, 2024, and 2023, respectively.

Future estimated amortization of intangible assets for the next five years is as follows:

 

Fiscal years

 

$ in thousands

 

 2026

 

$

1,593

 

 2027

 

 

1,590

 

 2028

 

 

1,554

 

 2029

 

 

1,150

 

 2030

 

 

780

 

 Thereafter

 

 

4,667

 

 

 

$

11,334

 

 

The Company updated its impairment evaluation of goodwill and intangible assets with indefinite lives at August 31, 2025. No impairment losses were indicated as a result of the annual impairment testing for fiscal 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Oct 23, 2025Showing above
2024Oct 24, 2024
2023Oct 19, 2023
2022Oct 20, 2022
2021Oct 21, 2021
2020Oct 22, 2020
2019Oct 31, 2019
2018Oct 24, 2018
2017Oct 13, 2017
2016Oct 18, 2016
2015Oct 20, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.