Goodwill and Intangible Assets
 6 Months Ended
Feb. 28, 2014
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
GOODWILL AND OTHER INTANGIBLE ASSETS
The carrying amount of goodwill by segment for the Company is as follows: 
 
EMEA
 
Americas
 
APAC
 
Total
 
(In thousands)
Balance as of August 31, 2013
$
70,266

 
$
69,260

 
$
—

 
$
139,526

Acquisitions
11,618

 
29,063

 
637

 
41,318

Translation
4,530

 
3

 
2

 
4,535

Balance as of February 28, 2014
$
86,414

 
$
98,326

 
$
639

 
$
185,379


The increase in goodwill from August 31, 2013 is due to the acquisition of the Perrite Group in the first quarter of fiscal 2014 and the Network Polymers and Prime Colorants acquisitions in the second quarter of fiscal 2014. Goodwill is calculated as the excess of the purchase price over the estimated fair values of the assets acquired and the liabilities assumed in the acquisition, and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill associated with the Perrite Group transaction was included in the EMEA and APAC segments and none of the goodwill is deductible for income tax purposes. Goodwill associated with both the Network Polymers and Prime Colorants transactions was included in the Americas segment and the goodwill is deductible for income tax purposes.
Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.
The Company completed its annual impairment review of goodwill as of June 1, 2013 and noted no impairment. The fair value used in the analysis was estimated using a combination of the income and market approaches. These valuation methodologies use management judgment and assumptions including, but not limited to, the determination of appropriate market comparables, projected future cash flows (including timing and profitability), discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future economic and market conditions. In addition, the Company is not aware of any triggers which would require a goodwill impairment test as of February 28, 2014.
The following table summarizes intangible assets with determinable useful lives by major category: 
 
February 28, 2014
 
August 31, 2013
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
(In thousands)
Customer related intangibles
$
107,961

 
$
(23,922
)
 
$
84,039

 
$
85,129

 
$
(19,605
)
 
$
65,524

Developed technology
20,052

 
(6,147
)
 
13,905

 
19,641

 
(5,156
)
 
14,485

Registered trademarks and tradenames
27,080

 
(5,485
)
 
21,595

 
15,991

 
(4,113
)
 
11,878

Total finite-lived intangible assets
$
155,093

 
$
(35,554
)
 
$
119,539

 
$
120,761

 
$
(28,874
)
 
$
91,887


The increase in intangible assets from August 31, 2013 is due to the fiscal 2014 acquisitions. Amortization expense of intangible assets was $3.1 million and $6.1 million for the three and six months ended February 28, 2014, respectively, and $2.6 million and $5.2 million for the three and six months ended February 28, 2013, respectively.