In 2026 and 2025, we capitalized $2.5 million and $1.9 million, respectively, for intangible assets, with weighted-average useful lives of 18.4 years and 18.6 years, respectively. Amortization expense for intangible assets was $30.4 million, $35.6 million and $40.0 million in 2026, 2025 and 2024, respectively. Amortization expense is expected to be $29.8 million for 2027, $10.1 million for 2028, $6.2 million for 2029, $5.5 million for 2030, $2.0 million for 2031 and $6.1 million for 2032 and thereafter.


Goodwill by segment	Advanced Computing		Integrated Memory		Total
Balance as of August 30, 2024
Gross	166,330		14,720		181,050
Accumulated impairment losses	(19,092)		—		(19,092)
Carrying value	147,238		14,720		161,958
Impairment losses during the year-ended August 29, 2025	$	(16,063)	$	—	$	(16,063)
Balance as of August 29, 2025
Gross	166,330		14,720		181,050
Accumulated impairment losses	(35,155)		—		(35,155)
Carrying value	$	131,175	$	14,720	$	145,895
Balance as of August 28, 2026
Gross	166,330		14,720		181,050
Accumulated impairment losses	(35,155)		—		(35,155)
Carrying value	131,175		14,720		145,895

During the second quarter of 2023, we initiated a plan within our Advanced Computing segment to wind down manufacturing and discontinue the sale of products offered through our Penguin Edge business, which we completed in the fourth quarter of 2026. In each quarter of 2025, to assess the fair value of the Penguin Edge business and reporting unit for the purpose of goodwill impairment, we utilized a discounted cash flow model using assumptions for how a market participant would value the business based on expected future cash flows through the expected completion of the wind down. We used this valuation approach because there were no comparable transactions in the marketplace of a similar business being sold while in the process of winding down. Further, since the Penguin Edge business has no expansion or product initiatives, those expected future cash flows incorporated expected revenues, the costs associated with fulfilling customer contracts, and the costs associated with winding down the Penguin Edge business. In determining the fair value of the Penguin Edge business, it was our expectation that the business would continue to be profitable and generate positive free cash flow through the wind down of the business. We calculated the expected remaining cash flows based on existing contracts, future expected orders based on historical order volumes, and future expected orders identified through customer engagements for last-time buy planning, which were expected to fully consume all inventory on hand. Net estimated discounted cash flows were calculated by taking the total proceeds expected from sales, minus cash outflows for costs associated with fulfilling customer contracts, operating expenses, collection of receivables recognized as of August 29, 2025, and costs associated with the wind down of the Penguin Edge business. We assumed no capital expenditures because we are no longer investing in the business.

We applied a discount rate of 16.25%, which we believe reflects the return a market participant would require when purchasing the Penguin Edge business given the risk profile of the remaining operations and the limited future cash flows from winding down. However, given the short period of time associated with the remaining cash flows for the business, changes to the discount rate would not have produced a materially different fair value

Based on our analysis, the fair value of the Penguin Edge business was determined to be lower than its carrying value, resulting in an impairment charge for the remaining goodwill balance of $16.1 million for the year-ended August 29, 2025. The goodwill impairments were recorded to align the carrying value of the Penguin Edge reporting unit with the fair value of the Penguin Edge reporting unit as of the end of the respective reporting periods. The goodwill impairment loss recognized reduced the Penguin Edge reporting unit’s carrying value to zero.