Identifiable Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Identifiable Intangible Assets

Intangible Assets and Goodwill

At March 31, 2020, as a result of the COVID-19 pandemic, we performed a quantitative interim impairment assessment for goodwill and indefinite-lived intangible assets associated with the Krausz acquisition and concluded that these assets were not impaired.

We completed our annual goodwill impairment test and determined there were no impairments at September 1, 2020.

Intangible Assets

Direct internal and external costs to develop software licensed by Technologies’ customers are capitalized. Capitalized costs are amortized over the 6-year estimated useful life of the software, beginning when the software is complete and ready for its intended use. At September 30, 2020, the remaining weighted-average amortization period for this software was 2.0 years. Amortization expense related to such software assets was $3.3 million, $3.3 million and $2.9 million for 2020, 2019 and 2018, respectively. Amortization expense for each of the next five years is scheduled to be $3.2 million in 2021, $2.7 million in 2022, $2.2 million in 2023, $1.5 million in 2024 and $0.8 million in 2025.

At September 30, 2020, the remaining weighted-average amortization period for the business combination-related finite-lived customer relationship and technology intangible assets were 4.2 years and 3.9 years, respectively. Amortization expense related to these assets was $24.9 million, $23.7 million and $19.9 million for 2020, 2019 and 2018, respectively. Amortization expense for each of the next five years is scheduled to be $24.9 million in 2021, $24.7 million in 2022, $24.7 million in 2023, $24.3 million in 2024 and $4.8 million in 2025.

Intangible assets are presented below.

	September 30,
	2020		2019
	(in millions)
Capitalized internal-use software:
Cost	$	31.5	$	30.2
Accumulated amortization	(20.8)		(17.5)
Net book value	10.7		12.7
Business combination-related:
Cost:
Finite-lived intangible assets:
Technology	118.5		116.6
Customer relationships and other	370.2		370.0
Indefinite-lived intangible assets:
Trade names and trademarks	271.6		271.4
	760.4		758.0
Accumulated amortization:
Technology	(81.0)		(76.4)
Customer relationships and other	(281.2)		(260.6)
	(362.2)		(337.0)
Net book value	398.2		421.0
Total intangible assets net book value	$	408.9	$	433.7

Goodwill

Changes in the carrying amount of goodwill were as follows:

	September 30,
	2020		2019
	(in millions)
Balance at beginning of year	$	95.7	$	12.1
Acquisition of Krausz	0.3		80.1
Change in foreign currency exchange rates	3.8		3.5
Balance at end of year	$	99.8	$	95.7