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Goodwill and Intangible Assets
9 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

During the third fiscal quarter of 2024, we completed our annual impairment test of goodwill, which was based on a qualitative assessment, and concluded that there was no impairment. A qualitative assessment is designed to determine whether we believe it is more likely than not that the fair values of our reporting units exceed their carrying values. A qualitative assessment includes a review of qualitative factors, including company-specific (financial performance and long-range plans), industry, and macroeconomic factors, and a consideration of the fair value of each reporting unit at the last valuation date.

Goodwill and acquired intangible assets consisted of the following:

(in thousands)

 

June 30, 2024

 

 

September 30, 2023

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

Goodwill (not amortized)

 

 

 

 

 

 

 

$

3,442,245

 

 

 

 

 

 

 

 

$

3,358,511

 

Intangible assets with finite lives (amortized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased software

 

$

627,099

 

 

$

424,643

 

 

$

202,456

 

 

$

615,915

 

 

$

395,109

 

 

$

220,806

 

Capitalized software

 

 

22,877

 

 

 

22,877

 

 

 

—

 

 

 

22,877

 

 

 

22,877

 

 

 

—

 

Customer lists and relationships

 

 

1,135,067

 

 

 

443,644

 

 

 

691,423

 

 

 

1,116,117

 

 

 

413,125

 

 

 

702,992

 

Trademarks and trade names

 

 

37,727

 

 

 

21,101

 

 

 

16,626

 

 

 

36,851

 

 

 

19,400

 

 

 

17,451

 

Other

 

 

3,886

 

 

 

3,886

 

 

 

—

 

 

 

3,867

 

 

 

3,867

 

 

 

—

 

Total intangible assets with finite lives

 

$

1,826,656

 

 

$

916,151

 

 

$

910,505

 

 

$

1,795,627

 

 

$

854,378

 

 

$

941,249

 

Total goodwill and acquired intangible assets

 

 

 

 

 

 

 

$

4,352,750

 

 

 

 

 

 

 

 

$

4,299,760

 

Changes in Goodwill were as follows:

(in thousands)

 

 

Balance, October 1, 2023

$

3,358,511

 

Acquisitions

 

77,118

 

Foreign currency translation adjustment

 

6,616

 

Balance, June 30, 2024

$

3,442,245

 

The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows:

(in thousands)

 

Three months ended

 

 

Nine months ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

Amortization of acquired intangible assets

 

$

10,672

 

 

$

10,670

 

 

$

31,459

 

 

$

29,352

 

Cost of revenue

 

 

9,685

 

 

 

9,841

 

 

 

28,835

 

 

 

25,817

 

Total amortization expense

 

$

20,357

 

 

$

20,511

 

 

$

60,294

 

 

$

55,169