Goodwill and Acquired Intangible Assets

12 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

7. Goodwill and Acquired Intangible Assets

Goodwill and acquired intangible assets consisted of the following:

(in thousands)	September 30, 2024						September 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Goodwill (not amortized)					$	3,461,891					$	3,358,511
Intangible assets with finite lives (amortized)(1):
Purchased software	$	634,439	$	436,471	$	197,968	$	615,915	$	395,109	$	220,806
Capitalized software		22,877		22,877		—		22,877		22,877		—
Customer lists and relationships		1,141,086		457,718		683,368		1,116,117		413,125		702,992
Trademarks and trade names		37,961		21,821		16,140		36,851		19,400		17,451
Other		3,941		3,941		—		3,867		3,867		—
	$	1,840,304	$	942,828	$	897,476	$	1,795,627	$	854,378	$	941,249
Total goodwill and acquired intangible assets					$	4,359,367					$	4,299,760

(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, 17 years, and 11 years, respectively. The weighted-average useful life for all intangible assets in total is 15 years.

The changes in the carrying amounts of Goodwill from September 30, 2023 to September 30, 2024 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 were as follows:

(in thousands)
Balance, September 30, 2022	$	2,353,654
ServiceMax acquisition		974,850
Foreign currency translation adjustments		30,007
Balance, September 30, 2023	$	3,358,511
pure-systems acquisition		77,118
Foreign currency translation adjustments		26,262
Balance, September 30, 2024	$	3,461,891

The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2024, 2023 and 2022 was reflected in our Consolidated Statements of Operations as follows:

(in thousands)	Year ended September 30,
	2024		2023		2022
Amortization of acquired intangible assets	$	42,018	$	40,022	$	34,970
Cost of revenue		38,495		35,694		25,578
Total amortization expense	$	80,513	$	75,716	$	60,548

The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2024 is $78.7 million for 2025, $78.8 million for 2026, $78.9 million for 2027, $76.1 million for 2028, $73.0 million for 2029 and $512.0 million thereafter.