Impairment charge, Property, equipment and leasehold improvements

[Table of Contents](#i677b09687fd443618b9c84261c8e0734_7)The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Acquisition Date Fair Value |  | Acquisition Date Useful Life |  | Amortization Method |
|  |  | (in thousands) |  | (in years) |  |  |
| Current assets |  | $ | 812  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Amortizable intangible assets |  |  |  |  |  |  |
| Software technology |  | 8,100  |  |  | 7 years |  | Straight-line |
| Trade names |  | 2,800  |  |  | 15 years |  | Straight-line |
|  |  |  |  |  |  |  |
| Client relationships |  | 900  |  |  | 12 years |  | Straight-line |
| Goodwill |  | 30,058  |  |  |  |  |  |
| Other assets |  | 5,299  |  |  |  |  |  |
| Current liabilities |  | (3,069) |  |  |  |  |  |
| Other liabilities |  | (2,984) |  |  |  |  |  |
| Total purchase price |  | $ | 41,916  |  |  |  |  |  |

Goodwill totaling $30.1 million represents the excess of the TVL purchase price over the fair value of net assets acquired and is included in the Americas segment. Goodwill generated from the TVL acquisition is not deductible for income tax purposes. The results of TVL's operations have been included in our Consolidated Financial Statements, within the Americas segment, beginning with its acquisition on November 2, 2020. Pro forma information has not been presented because the effect of the TVL acquisition is not material to our Consolidated Financial Statements. 7. PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTSProperty, equipment and leasehold improvements consist of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands) | August 31,  |
| 2022 |  | 2021 |
| Leasehold improvements | $ | 184,425  |  |  | $ | 197,719  |  |
| Computers and related equipment | 104,514  |  |  | 136,213  |  |
| Furniture and fixtures | 58,143  |  |  | 58,212  |  |
| Subtotal | $ | 347,082  |  |  | $ | 392,144  |  |
| Less accumulated depreciation and amortization | (266,239) |  |  | (260,767) |  |
| Property, equipment and leasehold improvements, net | $ | 80,843  |  |  | $ | 131,377  |  |

Depreciation expense was $24.3 million, $30.4 million and $32.2 million for fiscal years 2022, 2021 and 2020, respectively.During fiscal 2022, we incurred an impairment charge of $30.7 million for property, equipment and leasehold improvements related to vacating certain leased office space. Refer to Note 4, Fair Value Measures, for more information on the property, equipment and leasehold improvements assets impairment methodology.69
