Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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, 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
Acquisitions during the year ended September 30, 2024	—		—		—		—		—		909		909
Amortization expense for the year ended September 30, 2024	—		—		(455)		(5,711)		(637)		(1,039)		(7,842)
Net balance as of September 30, 2024	$	336,602	$	149,921	$	3,964	$	46,403	$	1,750	$	3,353	$	205,391

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. The impairment loss is recorded in restructuring and impairment in the consolidated statements of operations. 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, 2024 and 2022. See Note 2 for more information about our annual impairment tests of goodwill and identifiable intangible assets.

Amortization expense was $7.8 million, $13.4 million and $7.6 million for the years ended September 30, 2024, 2023 and 2022, respectively, which includes amortization expense of $1.0 million, $0.6 million and $0.1 million for the years ended September 30, 2024, 2023 and 2022, respectively, for internally developed software. Amortization expense is recorded in depreciation and amortization in the

consolidated statements of operations. For internally developed software acquisitions during the year ended September 30, 2024, the weighted average useful life of total intangible assets is 3.6 years.

The following table summarizes the expected amortization expense for the fiscal years 2025 through 2029 and thereafter ($ in thousands):


2025	$	8,418
2026	8,418
2027	8,175
2028	6,638
2029	6,637
Thereafter	17,184
	$	55,470

As of September 30, 2024 and 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.