v3.22.4
Goodwill and Other Intangible Assets
3 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

(a) Goodwill

We believe our Chief Executive Officer (“CEO”) is our chief operating decision maker (“CODM”). Our CEO approves all major decisions, including reorganizations and new business initiatives. Our CODM reviews routine consolidated operating information and makes decisions on the allocation of resources at this level, as such, we have concluded that we have one operating segment.

All goodwill is assigned to one or more reporting units. A reporting unit represents an operating segment or a component within an operating segment for which discrete financial information is available and is regularly reviewed by segment management for performance assessment and resource allocation. Upon consideration of our components, we have concluded that our goodwill is associated with one reporting unit.

On December 31, 2022, we concluded that no goodwill impairment indicators were present. We will continue to monitor the impacts of the COVID-19 pandemic on our reporting unit fair value. The full extent to which the ongoing COVID-19 pandemic could adversely affect our financial performance will depend on future developments, many of which are outside of our control.

The changes in the carrying amount of goodwill for the three months ended December 31, 2022 are as follows (dollars in thousands):

 

 

 

Total

 

Balance as of September 30, 2022

 

$

890,802

 

Effect of foreign currency translation

 

 

11,161

 

Balance as of December 31, 2022

 

$

901,963

 

(b) Intangible Assets, Net

The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):

 

 

 

December 31, 2022

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted Average
Remaining Life
(Years)

 

Customer relationships

 

$

107,373

 

 

$

(100,073

)

 

$

7,300

 

 

 

1.7

 

Technology and patents

 

 

89,571

 

 

 

(89,158

)

 

 

413

 

 

 

1.0

 

Total

 

$

196,944

 

 

$

(189,231

)

 

$

7,713

 

 

 

 

 

 

 

September 30, 2022

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Weighted Average
Remaining Life
(Years)

 

Customer relationships

 

$

104,498

 

 

$

(95,315

)

 

$

9,183

 

 

 

1.7

 

Technology and patents

 

 

88,600

 

 

 

(88,083

)

 

 

517

 

 

 

1.2

 

Total

 

$

193,098

 

 

$

(183,398

)

 

$

9,700

 

 

 

 

Amortization expense related to intangible assets in the aggregate was $2.5 million and $5.0 million for the three months ended December 31, 2022 and 2021. We expect amortization of intangible assets to be approximately $3.7 million for the remainder of fiscal year 2023.