Goodwill and Other Identifiable Intangible Assets

3 Months Ended

Dec. 31, 2022

Goodwill and Other Identifiable Intangible Assets [Abstract]

Goodwill and Other Identifiable Intangible Assets

7. Goodwill and Other Identifiable 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 identifiable intangible assets are as follows:

($ in thousands)	Goodwill Unamortized		Trade Names Unamortized		Developed technologies Amortized			Customer Relationships Amortized			Domain Names Amortized			Internally Developed Software Amortized			Total Intangible Assets, net
Net balance as of September 30, 2022		378,588		186,779		14,274			101,230			1,970			2,218			306,471
Acquisitions during the three months ended December 31, 2022		18,880		8,400		-			-			-			-			8,400
Accumulated amortization for the three months ended December 31, 2022		-		-		(386	)		(2,687	)		(104	)		(115	)		(3,292	)
Net balance as of December 31, 2022	$	397,468	$	195,179	$	13,888		$	98,543		$	1,866		$	2,103		$	311,579

Amortization expense was $3.3 million for the three months ended December 31, 2022, and is recorded in depreciation and amortization expense in the unaudited condensed consolidated statements of operations. No amortization expense was recorded for the three months ended December 31, 2021.

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

2023 (excluding the three months ended December 31, 2022)	$	9,877
2024		13,170
2025		13,170
2026		13,170
2027		12,982
Thereafter		54,031
	$	116,400

As of December 31, 2022, the carrying value of goodwill totaled $397.5 million, of which $298.9 million was related to our Dealerships reporting segment and $98.6 million was related to our Distribution reporting segment. 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.