XML 32 R16.htm IDEA: XBRL DOCUMENT v3.19.3
Intangible Assets, Goodwill and Acquisitions
12 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets, Goodwill and Acquisitions

8.Intangible Assets, Goodwill and Acquisitions

Intangible assets as of September 30, 2019 and September 30, 2018 consist of the following:

 

 

 

 

 

September 30, 2019

 

 

September 30, 2018

 

 

 

Useful

Life

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

Customer relationships

 

6-21 yrs.

 

$

639.6

 

 

$

(393.3

)

 

$

622.8

 

 

$

(337.8

)

Trademarks(1)

 

4-12 yrs.

 

 

4.8

 

 

 

(1.7

)

 

 

230.9

 

 

 

(227.5

)

Non-compete agreements

 

5 yrs.

 

 

2.7

 

 

 

(0.6

)

 

 

2.3

 

 

 

(0.2

)

Total intangible assets

 

 

 

$

647.1

 

 

$

(395.6

)

 

$

856.0

 

 

$

(565.5

)

 

(1)

During the fiscal year ended September 30, 2019, the Company wrote off $226.1 of fully amortized trademarks.

 

Amortization expense related to intangible assets was $56.3, $104.9  and $92.9 for the years ended September 30, 2019, September 30, 2018 and the nine months ended September 30, 2017, respectively.

 

The following table shows changes in the carrying amount of goodwill from September 30, 2017 to September 30, 2019 by reportable segment:

 

 

 

Maintenance

Services

 

 

Development

Services

 

 

Total

 

Balance, September 30, 2017

 

$

1,523.3

 

 

$

180.5

 

 

$

1,703.8

 

Acquisitions

 

 

49.1

 

 

 

13.9

 

 

 

63.0

 

Balance, September 30, 2018

 

 

1,572.4

 

 

 

194.4

 

 

 

1,766.8

 

Acquisitions

 

 

43.6

 

 

 

 

 

 

43.6

 

Balance, September 30, 2019

 

$

1,616.0

 

 

$

194.4

 

 

$

1,810.4

 

 

The weighted average amortization period for intangible assets is 17.9 years. Amortization expense is anticipated to be as follows in future years:

 

Fiscal Year Ended September 30,

 

 

 

 

2020

 

$

51.1

 

2021

 

 

42.3

 

2022

 

 

35.9

 

2023

 

 

31.4

 

2024

 

 

24.7

 

2025 and thereafter

 

 

65.1

 

 

 

$

250.5

 

 

During the year ended September 30, 2019, the Company acquired, through a series of separate transactions, 100% of the operations of six unrelated Maintenance Services companies. The Company paid approximately $64.0 in consideration for the acquisitions, net of cash acquired. The Company accounted for the business combinations under the acquisition method and, accordingly, recorded the assets acquired and liabilities assumed at their estimated fair market values based on management’s preliminary estimates, with the excess allocated to goodwill. The fair values were primarily estimated using Level 3 assumptions within the fair value hierarchy, including estimated future cash flows, discount rates and other factors. The valuation process to determine fair values is not yet complete. The Company will finalize the amounts recognized as it obtains the information necessary to complete the analysis, but no later than one year from the acquisition date. The identifiable assets acquired were primarily intangible assets, including customer relationships and non-compete agreements of $17.2. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from anticipated synergies and the acquired assembled workforce. The Company expects a portion of the goodwill resulting from these acquisitions will be deductible for tax purposes.

 

During the year ended September 30, 2018, the Company acquired, through a series of separate transactions, 100% of the operations of five unrelated Maintenance Services companies. The Company paid approximately $104.4 in consideration for the acquisitions, net of cash acquired. The Company accounted for the business combinations under the acquisition method and, accordingly, recorded the assets acquired and liabilities assumed at their estimated fair market values based on management’s preliminary estimates, with the excess allocated to goodwill. The fair values were primarily estimated using Level 3 assumptions within the fair value hierarchy, including estimated future cash flows, discount rates and other factors. The valuation process to determine fair values is not yet complete. The Company will finalize the amounts recognized as it obtains the information necessary to complete the analysis, but no later than one year from the acquisition date. The identifiable assets acquired were primarily intangible assets, including customer relationships and non-compete agreements of $24.5. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from anticipated synergies and the acquired assembled workforce. The Company expects a portion of the goodwill resulting from these acquisitions will be deductible for tax purposes.