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Goodwill and Intangible Assets
 12 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for our reportable segments for fiscal years 2019 and 2018 were as follows (dollars in thousands):
 
Healthcare
 
Enterprise
 
Former Mobile
 
Automotive
 
Other
 
Total
Balance as of September 30, 2017
$
1,418,334

 
$
673,472

 
$
1,241,010

 
$
—

 
$
—

 
$
3,332,816

Acquisitions
14,936

 
—

 
—

 
50,193

 
—

 
65,129

Purchase accounting adjustments
(705
)
 
—

 
2,697

 
(3,275
)
 
—

 
(1,283
)
Reorganization (Note 23)
—

 
11,991

 
(1,249,051
)
 
1,080,453

 
156,607

 
—

Impairment charge (a)
—

 
—

 
—

 
—

 
(141,781
)
 
(141,781
)
Effect of foreign currency translation
(2,240
)
 
(2,116
)
 
5,344

 
(7,424
)
 
(1,340
)
 
(7,776
)
Balance as of September 30, 2018
1,430,325

 
683,347

 
—

 
1,119,947

 
13,486

 
3,247,105

Acquisitions
8,785

 
—

 
—

 
—

 
—

 
8,785

Purchase accounting adjustments
113

 
—

 
—

 
(171
)
 
—

 
(58
)
Effect of foreign currency translation
(4,079
)
 
(3,444
)
 
—

 
(4,208
)
 
(637
)
 
(12,368
)
Balance as of September 30, 2019
$
1,435,144

 
$
679,903

 
$
—

 
$
1,115,568

 
$
12,849

 
$
3,243,464


                   
(a) Represents accumulated impairment charge as of September 30, 2019 and 2018.

Intangible assets consist of the following as of September 30, 2019 and 2018 (dollars in thousands):
 
September 30, 2019
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Weighted Average Remaining Life (Years)
Customer relationships
$
605,736

 
$
(350,695
)
 
$
255,041

 
5.0
Technology and patents
264,151

 
(166,670
)
 
97,481

 
3.5
Trade names, trademarks, and other
28,961

 
(24,551
)
 
4,410

 
1.2
Total
$
898,848

 
$
(541,916
)
 
$
356,932

 

 
September 30, 2018
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Weighted Average Remaining Life (Years)
Customer relationships
$
605,784

 
$
(289,218
)
 
$
316,566

 
5.9
Technology and patents
292,766

 
(169,806
)
 
122,960

 
3.8
Trade names, trademarks, and other
28,985

 
(18,510
)
 
10,475

 
1.9
Total
$
927,535

 
$
(477,534
)
 
$
450,001

 
 

Amortization expense for acquired technology and patents is included in the cost of revenue in the accompanying statements of operations and was $36.8 million, $50.9 million and $57.9 million in fiscal 2019, 2018 and 2017, respectively. Amortization expense for customer relationships, trade names, trademarks, and other, and non-competition agreements is included in operating expenses and was $66.7 million, $74.0 million and $92.8 million in fiscal 2019, 2018 and 2017, respectively.
Estimated amortization expense for each of the five succeeding years as of September 30, 2019, is as follows (dollars in thousands):
Year Ending September 30,
 
Cost of Revenue
 
Other Operating Expenses
 
Total
2020
 
$
33,628

 
$
60,680

 
$
94,308

2021
 
25,286

 
55,891

 
81,177

2022
 
20,019

 
51,830

 
71,849

2023
 
13,507

 
39,585

 
53,092

2024
 
5,041

 
22,809

 
27,850

Thereafter
 
—

 
28,656

 
28,656

Total
 
$
97,481

 
$
259,451

 
$
356,932


Fiscal Year 2019 Annual Goodwill Impairment Analysis
For Fiscal year 2019 goodwill impairment analysis, we had four reporting units with goodwill assigned: Healthcare, Enterprise, Automotive, and Voicemail-to-Text. The estimated fair value of each reporting unit significantly exceeded its carrying amount. There was no impairment of goodwill or other intangible assets in fiscal year 2019.
Fiscal Year 2018 Goodwill Impairment Analysis
Effective the second quarter of fiscal year 2018, our Automotive business, which was previously included within our former Mobile segment, became a standalone operating segment. As a result of the reorganization, the former Mobile reporting unit was separated into three discrete lines of business comprised of Automotive, Dragon TV, and Devices. Dragon TV was merged within our Enterprise segment, and Devices was included within Other segment. We assigned $1,080.5 million, $12.0 million, and $36.0 million of goodwill to Automotive, Dragon TV and Devices, respectively, based on their relative fair values as of March 31, 2018, and assessed the assigned goodwill for impairment by comparing each component’s fair value to its carrying amount. As a result, we recorded a $35.1 million goodwill impairment for devices during the second quarter of fiscal 2018.
Also during the second quarter of fiscal year 2018, our Subscriber Revenue Services ("SRS") reporting unit, originally included within our Mobile operating segment, recorded significantly lower revenue and profitability due to recent market disruptions in certain markets that we serve. We concluded that these financial results coupled with the rapid market shifts being experienced in the industry were factors that represented impairment indicators, triggering a review of goodwill and indefinite-lived intangible assets for impairment during the second quarter of fiscal year 2018. As a result, we recorded a goodwill impairment charge of $102.8 million related to SRS for the second quarter of fiscal 2018. The assessment did not result in any impairment charge of other intangible assets.
During the fourth quarter of fiscal year 2018, in connection with our strategic business review announced in our earnings release issued on May 9, 2018, we restructured our SRS business by separating the voicemail transcription services business ("Voicemail-to-Text"), which continued to operate as part of the Other Segment, and commenced a wind-down of our SRS Mobile Operator Services in India and Brazil, and our Devices businesses. The wind-down decision resulted in significantly lower estimated future cash flows over a considerably shorter time horizon, which triggered a review of goodwill and long-lived asset groups for impairment.
As a result of the impairment review, we recorded an additional $15.0 million impairment charge for Devices for the fourth quarter of fiscal year 2018, including $7.6 million related to acquired trade names and customer relationships, $0.8 million related to acquired technology assets, $6.2 million related to fixed assets, and $0.4 million related to its remaining goodwill; we also recorded a $25.1 million impairment charge for our Mobile Operator Services business for the fourth quarter of fiscal year 2018, including $12.9 million related to acquired trade names and customer relationships, $7.9 million related to acquired technology assets, $0.9 million related to fixed assets, and $3.4 million related to goodwill.
The fair value of a reporting unit is generally determined using a combination of the income approach and the market approach, where the income approach is weighted 50% and the market approach 50%. Determining the fair value of a long-lived asset group or a reporting unit requires the use of significant estimates and assumptions, all of which we believe are reasonable but nevertheless inherently uncertain. These estimates and assumptions include revenue growth rates and operating margins used to estimate future cash flows, risk-adjusted discount rates, future economic and market conditions, and the use of market comparables. Also, if we experience lower-than-expected growth or fail to sustain our profitability due to changing market dynamics, competition or technological obsolescence, it could adversely impact the long-term assumptions used in our impairment analysis. Such changes in assumptions and estimates may result in additional impairment of our goodwill and/or other long-lived assets, which could
materially impact our future results of operations and financial conditions. Additionally, as we continue our product portfolio review and implement organizational changes to better align with our long-term strategies, decisions from such efforts may trigger additional impairment reviews of goodwill and other long-lived assets, which may result in additional impairment charges in the future periods.