Goodwill and Acquired Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

7. Goodwill and Acquired Intangible Assets

We have two operating and reportable segments: (1) Software Products and (2) Professional Services. We assess goodwill for impairment at the reporting unit level. Our reporting units are determined based on the components of our operating segments that constitute a business for which discrete financial information is available and for which operating results are regularly reviewed by segment management. Our reporting units are the same as our operating segments.

As of September 30, 2022, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $2,725.2 million and attributable to our Professional Services segment was $11.2 million. As of September 30, 2021, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $2,525.7 million and attributable to our Professional Services segment was $45.2 million.

Goodwill and acquired intangible assets consisted of the following:


(in thousands)	September 30, 2022						September 30, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Goodwill (not amortized)					$	2,353,654					$	2,191,887
Intangible assets with finite lives (amortized)(1):
Purchased software	$	502,859	$	355,857	$	147,002	$	483,771	$	338,542	$	145,229
Capitalized software		22,877		22,877		—		22,877		22,877		—
Customer lists and relationships		594,970		369,390		225,580		574,516		350,648		223,868
Trademarks and trade names		27,546		17,410		10,136		26,906		17,036		9,870
Other		3,766		3,766		—		4,000		4,000		—
	$	1,152,018	$	769,300	$	382,718	$	1,112,070	$	733,103	$	378,967
Total goodwill and acquired intangible assets					$	2,736,372					$	2,570,854

(1) The weighted-average useful lives of purchased software, customer lists and relationships, and trademarks and trade names with a remaining net book value are 11 years, 11 years, and 12 years, respectively.

The changes in the carrying amounts of goodwill from September 30, 2021 to September 30, 2022 are due to the impact of acquisitions and to foreign currency translation adjustments related to those asset balances that are recorded in non-U.S. currencies.

Changes in goodwill presented by reportable segment were as follows:


(in thousands)	Software Products			Professional Services			Total
Balance, September 30, 2020	$	1,583,316		$	42,470		$	1,625,786
Arena acquisition		563,620			—			563,620
Other acquisitions		181			400			581
Foreign currency translation adjustments		1,851			49			1,900
Balance, September 30, 2021	$	2,148,968		$	42,919		$	2,191,887
Intland Software acquisition		240,971			—			240,971
Other acquisitions		691			—			691
Divestiture of business		—			(32,992	)		(32,992	)
Foreign currency translation adjustments		(46,611	)		(292	)		(46,903	)
Balance, September 30, 2022	$	2,344,019		$	9,635		$	2,353,654

The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2022, 2021 and 2020 was reflected in our Consolidated Statements of Operations as follows:


(in thousands)	Year ended September 30,
	2022		2021		2020
Amortization of acquired intangible assets	$	34,970	$	29,396	$	28,713
Cost of software revenue		25,578		29,769		27,391
Total amortization expense	$	60,548	$	59,165	$	56,104

The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2022 is $56.4 million for 2023, $48.3 million for 2024, $42.1 million for 2025, $38.7 million for 2026, $36.2 million for 2027 and $161.0 million thereafter.