Goodwill and Acquired Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

7. Goodwill and Acquired Intangible Assets

We have two operating and reportable segments: (1) Software Products and (2) Professional Services. We assess goodwill for impairment at the reporting unit level. Our reporting units are determined based on the components of our operating segments that constitute a business for which discrete financial information is available and for which operating results are regularly reviewed by segment management. Our reporting units are the same as our operating segments.

As of September 30, 2020, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,818.1 million and attributable to our Professional Services segment was $45.3 million. As of September 30, 2019, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,362.4 million and attributable to our Professional Services segment was $45.7 million.

Goodwill and acquired intangible assets consisted of the following:

(in thousands)	September 30, 2020						September 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Goodwill (not amortized)					$	1,625,786					$	1,238,179
Intangible assets with finite lives (amortized)⁽¹⁾:
Purchased software	$	443,275	$	309,124	$	134,151	$	377,359	$	278,144	$	99,215
Capitalized software		22,877		22,877		—		22,877		22,877		—
Customer lists and relationships		418,953		322,092		96,861		355,931		288,828		67,103
Trademarks and trade names		22,687		16,129		6,558		18,891		15,260		3,631
Other		4,017		4,017		—		3,910		3,910		—
	$	911,809	$	674,239	$	237,570	$	778,968	$	609,019	$	169,949
Total goodwill and acquired intangible assets					$	1,863,356					$	1,408,128

(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, 10 years, and 11 years, respectively.

The changes in the carrying amounts of goodwill from September 30, 2019 to September 30, 2020 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 presented by reportable segment were as follows:

(in thousands)	Software Products			Professional Services			Total
Balance, September 30, 2018	$	1,152,720		$	29,737		$	1,182,457
Frustum acquisition		53,673			—			53,673
Other acquisitions		—			12,645			12,645
Foreign currency translation adjustments		(10,329	)		(267	)		(10,596	)
Balance, September 30, 2019	$	1,196,064		$	42,115		$	1,238,179
Onshape Acquisition		364,910			—			364,910
Other acquisitions		12,262			—			12,262
Foreign currency translation adjustments		10,080			355			10,435
Balance, September 30, 2020	$	1,583,316		$	42,470		$	1,625,786

The aggregate amortization expense for intangible assets with finite lives recorded for the years ended September 30, 2020, 2019 and 2018 was reflected in our Consolidated Statements of Operations as follows:

(in thousands)	Year ended September 30,
	2020		2019		2018
Amortization of acquired intangible assets	$	28,713	$	23,841	$	31,350
Cost of software revenue		27,391		27,307		26,706
Total amortization expense	$	56,104	$	51,148	$	58,056

The estimated aggregate future amortization expense for intangible assets with finite lives remaining as of September 30, 2020 is $52.9 million for 2021, $39.1 million for 2022, $29.0 million for 2023, $20.3 million for 2024, $17.3 million for 2025 and $79.0 million thereafter.