Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets [Abstract]

8.	Goodwill and Intangible Assets

Our acquisitions have resulted in the recording of goodwill and other identifiable intangible assets. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets consist of internally developed software, domain names and other identifiable intangible assets such as, trade names, developed technologies, including design libraries, and customer relationships related to the acquisitions the Company has completed. The changes in goodwill and intangible assets are as follows:

($ in thousands)	Goodwill		Trade Names		Developed technologies			Customer Relationships			Domain Names			Internally Developed Software			Total Intangible Assets, net
	Unamortized		Unamortized		Amortized			Amortized			Amortized			Amortized
Net balance as of September 30, 2020	$	113,059	$	61,304	$	-		$	-		$	-		$	-		$	61,304
Acquisitions during the year ended September 30, 2021		55,432		23,990		-			-			-			-			23,990
Net balance as of September 30, 2021		168,491		85,294		-			-			-			-			85,294
Acquisitions during the year ended September 30, 2022		210,097		101,485		15,457			107,490			2,074			2,301			228,807
Accumulated amortization for the year ended September 30, 2022		-		-		(1,183	)		(6,260	)		(104	)		(83	)		(7,630	)
Net balance as of September 30, 2022	$	378,588		186,779	$	14,274		$	101,230		$	1,970		$	2,218		$	306,471

Amortization expense was $7.6 million for the year ended September 30, 2022 and is recorded in depreciation and amortization expense in the consolidated statements of operations. No amortization expense was recorded for the years ended September 30, 2021 and 2020. For acquisitions during the year ended September 30, 2022, the weighted average useful lives of developed technologies and customer relationships are 10 years and domain names and internally developed software are 5 years.

The following table summarizes the expected amortization expense for the fiscal years 2023 through 2027 and thereafter ($ in thousands):

2023	$	13,170
2024		13,170
2025		13,170
2026		13,170
2027		12,951
Thereafter		54,061
	$	119,692

As of September 30, 2022, the carrying value of goodwill totaled approximately $378.6 million, of which $280.0 million was related to our Dealerships reporting segment and $98.6 million was related to our Distribution reporting segment.

See Note 2 for more information about our annual impairment tests of goodwill and identifiable intangible assets.