Goodwill and Other Intangible Assets

6 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the six months ended March 31, 2020, are (in millions):



	Architecture & Software			Control Products & Solutions			Total
Balance as of September 30, 2019	$	432.3		$	638.8		$	1,071.1
Acquisition of businesses	—			304.5			304.5
Translation	(3.5		)	(9.8		)	(13.3		)
Balance as of March 31, 2020	$	428.8		$	933.5		$	1,362.3

Other intangible assets consist of (in millions):



	March 31, 2020
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Computer software products	$	190.6	$	133.4	$	57.2
Customer relationships	305.4		77.6		227.8
Technology	152.0		75.1		76.9
Trademarks	53.9		27.5		26.4
Other	13.8		12.8		1.0
Total amortized intangible assets	715.7		326.4		389.3
Allen-Bradley^® trademark not subject to amortization	43.7		—		43.7
Total	$	759.4	$	326.4	$	433.0



	September 30, 2019
	Carrying Amount		Accumulated Amortization		Net
Amortized intangible assets:
Computer software products	$	190.6	$	128.3	$	62.3
Customer relationships	110.5		69.2		41.3
Technology	110.4		69.5		40.9
Trademarks	31.4		26.4		5.0
Other	10.6		9.7		0.9
Total amortized intangible assets	453.5		303.1		150.4
Allen-Bradley^® trademark not subject to amortization	43.7		—		43.7
Total	$	497.2	$	303.1	$	194.1

Estimated amortization expense is $47.9 million in 2020, $47.2 million in 2021, $44.3 million in 2022, $43.1 million in 2023 and $40.1 million in 2024.

We perform our annual evaluation of goodwill and indefinite life intangible assets for impairment as required by U.S. GAAP at the beginning of the second quarter of each year, or more frequently if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For our annual evaluation of goodwill, we may perform a qualitative test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount in order to determine whether it is necessary to perform a quantitative goodwill impairment test. When performing the quantitative goodwill impairment test, we determine the fair value of each reporting unit under a combination of an income approach derived from discounted cash flows and a market multiples approach using selected comparable public companies. Significant assumptions used in the income approach include: management’s forecasted cash flows, including estimated future revenue growth rates and margins, discount rate, and terminal value. Forecasted future revenue growth and margins are based on management’s best estimate about current and future conditions. Discount rates are determined using weighted average cost of capital adjusted for risk factors specific to the reporting unit level, with comparison to market and industry data. The terminal value is estimated following common methodology of calculating the present value of estimated perpetual cash flow beyond the last projected period assuming constant discount and long-term growth rates. Significant assumptions used in the market multiples approach include selection of the comparable public companies and calculation of the appropriate market multiples.

For our 2020 annual evaluation, we performed a qualitative test for our Architecture & Software reporting unit and our Control Products & Solutions (excluding Sensia) reporting unit. We performed a quantitative test for our Sensia reporting unit. We also assessed the changes in events and circumstances subsequent to our annual test, including those related to the COVID-19 pandemic and the impact of recent declines in oil prices. Based on those evaluations, we concluded these assets were not impaired.