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Goodwill and Intangible Assets | 9 Months Ended
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Jun. 29, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and 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 June 29, 2019, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,382.2 million and attributable to our Professional Services segment was $46.1 million. As of September 30, 2018, goodwill and acquired intangible assets in the aggregate attributable to our Software Products segment was $1,352.4 million and attributable to our Professional Services segment was $30.2 million. Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. We completed our annual goodwill impairment review as of June 29, 2019 based on a qualitative assessment. Our qualitative assessment included company specific (financial performance and long-range plans), industry, and macroeconomic factors, and consideration of the fair value of each reporting unit relative to its carrying value at the last valuation date. Based on our qualitative assessment, we believe it is more likely than not that the fair values of our reporting units exceed their carrying values and no further impairment testing is required. Goodwill and acquired intangible assets consisted of the following:
| June 29, 2019 |  | September 30, 2018
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands)
Goodwill (not amortized) |  |  |  |  | $ | 1,245,084 |  |  |  |  |  |  | $ | 1,182,457 |
Intangible assets with finite lives (amortized) (1): |  |  |  |  |  |  |  |  |  |  |
Purchased software | $ | 379,459 |  |  | $ | 273,371 |  |  | $ | 106,088 |  |  | $ | 362,679 |  |  | $ | 254,059 |  |  | $ | 108,620 |
Capitalized software | 22,877 |  |  | 22,877 |  |  | — |  |  | 22,877 |  |  | 22,877 |  |  | — |
Customer lists and relationships | 359,361 |  |  | 286,059 |  |  | 73,302 |  |  | 357,586 |  |  | 270,272 |  |  | 87,314 |
Trademarks and trade names | 19,012 |  |  | 15,222 |  |  | 3,790 |  |  | 19,054 |  |  | 14,786 |  |  | 4,268 |
Other | 3,972 |  |  | 3,972 |  |  | — |  |  | 4,003 |  |  | 4,003 |  |  | — |
| $ | 784,681 |  |  | $ | 601,501 |  |  | $ | 183,180 |  |  | $ | 766,199 |  |  | $ | 565,997 |  |  | $ | 200,202 |
Total goodwill and acquired intangible assets |  |  |  |  | $ | 1,428,264 |  |  |  |  |  |  | $ | 1,382,659 |
(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 9 years, 10 years, and 11 years, respectively. Goodwill Changes in goodwill presented by reportable segments were as follows:
| Software Products |  | Professional Services |  | Total
| (in thousands)
Balance, October 1, 2018 | $ | 1,152,720 |  |  | $ | 29,737 |  |  | $ | 1,182,457 |
Frustum acquisition | 53,673 |  |  | — |  |  | 53,673 |
Other acquisitions | — |  |  | 12,645 |  |  | 12,645 |
Foreign currency translation adjustment | (3,598 | ) |  | (93 | ) |  | (3,691 | )
Balance, June 29, 2019 | $ | 1,202,795 |  |  | $ | 42,289 |  |  | $ | 1,245,084 |
Amortization of Intangible Assets The aggregate amortization expense for intangible assets with finite lives was classified in our Consolidated Statements of Operations as follows:
| Three months ended |  | Nine months ended
| June 29, 2019 |  | June 30, 2018 |  | June 29, 2019 |  | June 30, 2018
| (in thousands)
Amortization of acquired intangible assets | $ | 5,920 |  |  | $ | 7,850 |  |  | $ | 17,786 |  |  | $ | 23,566 |
Cost of license revenue | 6,873 |  |  | 6,798 |  |  | 20,432 |  |  | 20,029 |
Total amortization expense | $ | 12,793 |  |  | $ | 14,648 |  |  | $ | 38,218 |  |  | $ | 43,595 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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