Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2024

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:

	Goodwill		Trade Names		Developed Technologies		Customer Relationships		Domain Names		Internally Developed Software		Total Intangible Assets, net
($ in thousands)	Unamortized		Unamortized		Amortized		Amortized		Amortized		Amortized
Net balance as of September 30, 2023	336,602		149,921		4,419		52,114		2,387		3,483		212,324
Acquisitions during the six months ended March 31, 2024	—		—		—		—		—		621		621
Accumulated amortization for the six months ended March 31, 2024	—		—		(185)		(2,662)		(318)		(491)		(3,656)
Net balance as of March 31, 2024	$	336,602	$	149,921	$	4,234	$	49,452	$	2,069	$	3,613	$	209,289

Amortization expense was $2.1 million and $3.3 million for the three months ended March 31, 2024 and 2023, respectively, $3.7 million and $6.6 million for the six months ended March 31, 2024 and 2023, respectively, and is recorded in depreciation and amortization expense in the unaudited condensed consolidated statements of operations. For internally developed software acquisitions during the six months ended March 31, 2024, the weighted average useful life is 3.8 years.

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

2024 (excluding the six months ended March 31, 2024)	$	4,164
2025	8,329
2026	8,329
2027	8,086
2028	6,638
Thereafter	23,822
	$	59,368

As of March 31, 2024 and 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.