Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 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 nine months ended June 30, 2024	—		—		—		—		—		760		760
Accumulated amortization for the nine months ended June 30, 2024	—		—		(320)		(4,186)		(478)		(759)		(5,743)
Net balance as of June 30, 2024	$	336,602	$	149,921	$	4,099	$	47,928	$	1,909	$	3,484	$	207,341

Amortization expense was $2.1 million and $3.4 million for the three months ended June 30, 2024 and 2023, respectively, $5.7 million and $10.0 million for the nine months ended June 30, 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 nine months ended June 30, 2024, the weighted average useful life is 3.7 years.

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

2024 (excluding the nine months ended June 30, 2024)	$	2,093
2025	8,370
2026	8,370
2027	8,128
2028	6,638
Thereafter	23,821
	$	57,420

As of June 30, 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.