Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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