Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9. Goodwill and Intangible Assets

The Company considered the adverse impact of the COVID-19 pandemic on its operations as part of its annual impairment analyses of intangible assets and goodwill and concluded there was no impairment to record in fiscal year 2020.

Goodwill

The following table sets forth the change in the carrying amount of goodwill during the years ended September 30, 2020 and 2019, respectively (in millions): 

Balance as of September 30, 2018	$	2,491.8
Acquisitions1		(0.5	)
Translation and other adjustments		(0.7	)
Balance as of September 30, 2019	$	2,490.6
Balance as of September 30, 2019	$	2,490.6
Translation and other adjustments		(0.2	)
Balance as of September 30, 2020	$	2,490.4

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¹  Reflects purchase accounting adjustments related to fiscal year 2018 acquisition of Atlas Supply, Inc. (see Note 3 for further discussion).

The changes in the carrying amount of goodwill for the years ended September 30, 2020 and 2019 were driven primarily by purchase accounting and foreign currency translation adjustments.

Intangible Assets

In connection with transactions finalized for the year ended September 30, 2018, the Company recorded intangible assets of $1.05 billion ($920.8 million of customer relationships, $7.0 million of beneficial lease arrangements, and $120.0 million of indefinite-lived trademarks).

The following table summarizes intangible assets by category (in millions, except time period amounts):

	September 30,						Weighted- Average Remaining Life1
	2020			2019			(Years)
Amortizable intangible assets:
Non-compete agreements	$	0.2		$	2.8			1.7
Customer relationships		1,481.1			1,530.9			16.4
Trademarks		7.2			10.5			6.1
Beneficial lease arrangements		—			8.1			—
Total amortizable intangible assets		1,488.5			1,552.3
Accumulated amortization		(738.6	)		(619.9	)
Total amortizable intangible assets, net	$	749.9		$	932.4
Indefinite-lived trademarks		51.3			193.1
Total intangibles, net	$	801.2		$	1,125.5

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¹ As of September 30, 2020.

In the second quarter of fiscal year 2020, in connection with the Rebranding, the Company incurred non-cash accelerated intangible asset amortization of $142.6 million related to the write-off of certain trade names, primarily Allied (exterior products only), Roofing Supply Group and JGA. The Company used an income approach, specifically the relief from royalty method, to determine the fair value of remaining indefinite-lived trademarks. Various Level 3 fair value assumptions were used in the determination of the estimated fair value, including items such as sales growth rates, royalty rates, discount rates, and other prospective financial information.

For the years ended September 30, 2020, 2019, and 2018, the Company recorded $321.0 million, $207.1 million, and $141.2 million, respectively, of amortization expense relating to the above-listed intangible assets. The intangible asset lives range from 5 to 20 years and the weighted-average remaining life was 16.4 years as of September 30, 2020.

The following table summarizes the estimated future amortization expense for intangible assets (in millions):

Year Ending September 30,
2021	$	147.9
2022		120.4
2023		97.3
2024		78.7
2025		63.6
Thereafter		242.0
Total future amortization expense	$	749.9