Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $33.6 million at March 31, 2020, representing the excess of costs over fair value of assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table summarizes changes in the balance of goodwill during the six months ended March 31, 2020 (amounts shown in thousands):

Balance at September 30, 2019	$	32,636
Other adjustments(1)	806
Foreign currency effect on goodwill and other	112
Balance at March 31, 2020	$	33,554

(1)During the three months ended December 31, 2019, the Company determined that it had incorrectly classified $0.8 million of contract assets in its fair value estimate associated with the acquisition of A2iA. This asset was incorrectly recorded as other non-current assets with an offset to goodwill on the Company’s consolidated balance sheet during the three months ended June 30, 2018 and subsequent financial statements. The Company has determined that the adjustment was not material to any previously reported financial statements. Therefore, the consolidated balance sheet as of March 31, 2020 has been adjusted.

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets range from two to seven years. Intangible assets as of March 31, 2020 and September 30, 2019, respectively, are summarized as follows (amounts shown in thousands, except for years):

March 31, 2020:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	8,573	$	11,768
Customer relationships	4.8 years	17,628		8,234		9,394
Trade names	4.5 years	618		445		173
Total intangible assets		$	38,587	$	17,252	$	21,335

September 30, 2019:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	7,104	$	13,237
Customer relationships	4.8 years	17,628		6,701		10,927
Trade names	4.5 years	618		377		241
Total intangible assets		$	38,587	$	14,182	$	24,405

Amortization expense related to acquired intangible assets was $1.6 million and $1.8 million for the three months ended March 31, 2020 and 2019, respectively, and $3.2 million and $3.5 million for the six months ended March 31, 2020 and 2019, respectively, and is recorded within acquisition-related costs and expenses on the consolidated statements of operations and other comprehensive income (loss).

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts shown in thousands):

	Estimated Future Amortization Expense
2020—remaining	$	3,121
2021	6,020
2022	5,633
2023	3,696
2024	1,741
2025	1,124
Total	$	21,335