Goodwill and Intangible Assets Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The changes in the carrying amount of Intangible assets for the nine months ended June 30, 2019 are as follows (dollars in thousands): 

	Intangible Assets
Balance as of September 30, 2018	$	450,001
Acquisitions	1,488
Amortization	(78,126		)
Effect of foreign currency translation	(429		)
Balance at June 30, 2019	$	372,934

Fiscal Year 2018 Interim Impairment Analysis

Effective the second quarter of fiscal year 2018, our Automotive business, which was previously included within our Mobile segment, became a standalone operating segment. As a result of the reorganization, the original Mobile reporting unit was separated into three discrete lines of business comprised of Automotive, Dragon TV, and Devices. Dragon TV was merged within our Enterprise segment, and Devices was included within Other segment. We assigned $1,080.5 million, $12.0 million, and $36.0 million of Goodwill to Automotive, Dragon TV and Devices, respectively, based on their relative fair values as of March 31, 2018, and assessed the assigned Goodwill for impairment by comparing each component’s fair value to its carrying amount. As a result, we recorded a Goodwill impairment charge of $35.1 million related to Devices for the second quarter of fiscal 2018.

Also during the second quarter of fiscal year 2018, our Subscriber Revenue Services ("SRS") reporting unit, originally included within our Mobile operating segment, recorded significantly lower revenue and profitability due to recent market disruptions in certain markets that we serve. We concluded that these financial results coupled with the rapid market shifts being experienced in the industry were factors that represented impairment indicators, triggering a review of Goodwill and indefinite-lived intangible assets for impairment during the second quarter of fiscal year 2018. Based on the result of the impairment assessment, the carrying value of SRS exceeded its fair value by $94.3 million. In addition, we recorded an $8.5 million deferred tax benefit related to SRS’s Goodwill, which is amortized over time for tax purposes, and therefore increased the impairment charge by the same amount. As a result, we recorded a Goodwill impairment charge of $102.8 million related to SRS for the second quarter of fiscal year 2018. After the impairment charge, Goodwill assigned to SRS was $17.8 million as of March 31, 2018. The assessment did not result in any impairment charge of Other intangible assets.

Wind-down of Devices and Mobile Operator Services and Annual Goodwill Impairment Analysis

During the fourth quarter of fiscal year 2018, in connection with our strategic business review announced in our earnings release issued on May 9, 2018, we restructured our SRS business by separating the voicemail transcription services business ("Voice-to-Text"), which will continue to operate as part of the Other Segment, and commenced a wind-down of our SRS Mobile Operator Services in India and Brazil, and our Devices businesses. The SRS business provides value-added services to mobile operators in India and Brazil ("Mobile Operator Services"). As a result, we revised our multi-year operating plans of Mobile Operator Services and Devices businesses, as part of our fiscal year 2019 budgeting process, to reflect a significant decline in revenue and operating income. The wind-down decision has resulted in significantly lower estimated future cash flows over a considerably shorter time horizon, which triggered a review of Goodwill and long-lived asset groups for impairment.

As a result of the impairment review, we recorded an additional $15.0 million impairment charge for Devices for the fourth quarter of fiscal year 2018, including $7.6 million related to acquired trade names and customer relationships, $0.8 million related to acquired technology assets, $6.2 million related to fixed assets, and $0.4 million related to its remaining goodwill; we also recorded $25.1 million impairment charge for our Mobile Operator Services business for the fourth quarter of fiscal year 2018, including $12.9 million related to acquired trade names and customer relationships, $7.9 million related to acquired technology assets, $0.9 million related to fixed assets, and $3.4 million related to Goodwill.