Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

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, 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
Amortization expense 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
Acquisitions during the year ended September 30, 2023	18,481		8,800		—		—		945		1,878		11,623
Impairment recorded during the year ended September 30, 2023	(57,710)		(43,016)		(8,309)		(38,367)		—		—		(89,692)
Disposals from sales of businesses during the year ended September 30, 2023	(3,157)		(2,642)		—		—		—		—		(2,642)
Other adjustments during the year ended September 30, 2023	400		—		—		—		—		—		—
Amortization expense for the year ended September 30, 2023	—		—		(1,546)		(10,749)		(528)		(613)		(13,436)
Net balance as of September 30, 2023	$	336,602	$	149,921	$	4,419	$	52,114	$	2,387	$	3,483	$	212,324

During the year ended September 30, 2023 the Company recorded an impairment loss of $147.4 million related to the goodwill and identifiable intangible assets in order to adjust carrying value to estimated fair value. Of the $147.4 million impairment loss, $6.5 million and $140.9 million is reported in the Dealerships and Distribution reporting segment, respectively. No impairment loss was recorded for the years ended September 30, 2022 and 2021. See Note 2 for more information about our annual impairment tests of goodwill and identifiable intangible assets.

Amortization expense was $13.4 million and $7.6 million for the years ended September 30, 2023 and 2022, respectively, and is recorded in Depreciation and amortization in the consolidated statements of operations. No amortization expense was recorded for the year ended September 30, 2021. For acquisitions during the year ended September 30, 2023, the weighted average useful life of total intangible assets is 4.3 years with the weighted average useful lives of acquisitions for domain names and internally developed software being 4.3 and 4.4 years, respectively.

The following table summarizes the expected amortization expense for the fiscal years 2024 through 2028 and thereafter ($ in thousands):

2024	$	8,164
2025	8,164
2026	8,164
2027	7,922
2028	6,638
Thereafter	23,351
	$	62,403

As of September 30, 2023, the carrying value of goodwill totaled approximately $336.6 million, of which $295.3 million was related to our Dealerships reporting segment and $41.3 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.