XML 27 R14.htm IDEA: XBRL DOCUMENT v3.23.1
Goodwill and Other Identifiable Intangible Assets
 6 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Identifiable Intangible Assets 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:
GoodwillTrade NamesDeveloped TechnologiesCustomer RelationshipsDomain NamesInternally Developed
Software		Total
Intangible
Assets, net
($ in thousands)UnamortizedUnamortizedAmortizedAmortizedAmortizedAmortizedAmortized
Net balance as of September 30, 2022378,588 186,779 14,274 101,230 1,970 2,218 306,471 
Acquisitions during the six months ended March 31, 202318,480 8,800 - - - 26 8,826 
Other adjustments during the six months ended March 31, 2023401 - - - - - - 
Accumulated amortization for the six months ended March 31, 2023- - (773)(5,374)(208)(231)(6,586)
Net balance as of March 31, 2023$397,469 $195,579 $13,501 $95,856 $1,762 $2,013 $308,711 
Amortization expense was $3.3 million and $6.6 million for the three and six months ended March 31, 2023, and is recorded in depreciation and amortization expense in the unaudited condensed consolidated statements of operations. Amortization expense was $2.6 million for the three and six months ended March 31, 2022. For acquisitions during the six months ended March 31, 2023, the weighted average useful life of internally developed software is 5 years.
The following table summarizes the expected amortization expense for fiscal years 2023 through 2027 and thereafter ($ in thousands):
2023 (excluding the six months ended March 31, 2023)$6,587 
202413,175 
202513,175 
202613,175 
202712,987 
Thereafter54,033 
$113,132 
As of March 31, 2023, the carrying value of goodwill totaled $397.5 million, of which $298.5 million was related to our Dealerships reporting segment and $99.0 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.