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Goodwill and Intangible Assets, Net
12 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

Note 9 — Goodwill and Intangible Assets, Net

The following table presents details of the Company’s total goodwill:

 

As of October 1, 2016

   $ 2,211,639  

Goodwill resulting from acquisitions

     18,535  

Other

     (8,965
  

 

 

 

As of September 30, 2017

     2,221,209  

Goodwill resulting from acquisitions(1)

     227,283  

Other

     (3,597
  

 

 

 

As of September 30, 2018

   $ 2,444,895  
  

 

 

 

 

(1)

Mainly relates to the acquisitions of Vubiquity, projekt202 and UXP. In allocating the total preliminary purchase price for Vubiquity, based on estimated fair values, the Company recorded $146,912 of goodwill, $38,630 of customer relationships to be amortized over approximately nine years, $45,692 of core technology to be amortized over approximately five years, $10,104 of trade mark to be amortized over eight years. In allocating the total preliminary purchase price of projekt202, based on estimated fair values, the Company recorded $34,032 of goodwill and $19,835 of customer relationships to be amortized over four years. In allocating the total preliminary purchase price of UXP, based on estimated fair values, the Company recorded $41,468 of goodwill, $31,552 of core technology to be amortized over five years and $6,552 of customer relationships to be amortized over approximately five years.

The Company performs an annual goodwill impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Company operates in one operating segment, and this segment comprises its only reporting unit. In calculating the fair value of the reporting unit, the Company uses its market capitalization and a discounted cash flow methodology. There was no impairment of goodwill in fiscal years 2018, 2017 or 2016.

 

The following table presents details regarding the Company’s total definite-lived purchased intangible assets:

 

     Gross      Accumulated
Amortization
     Net  

September 30, 2018

        

Core technology

   $ 721,384      $ (576,936    $ 144,448  

Customer relationships

     563,656        (453,137      110,519  

Intellectual property rights and purchased computer software

     51,996        (51,996      —    

Other

     43,646        (33,364      10,282  
  

 

 

    

 

 

    

 

 

 

Total

   $ 1,380,682      $ (1,115,433    $ 265,249  
  

 

 

    

 

 

    

 

 

 

September 30, 2017

        

Core technology

   $ 604,673      $ (513,501    $ 91,172  

Customer relationships

     497,296        (414,654      82,642  

Intellectual property rights and purchased computer software

     51,996        (51,996      —    

Other

     33,542        (30,030      3,512  
  

 

 

    

 

 

    

 

 

 

Total

   $ 1,187,507      $ (1,010,181    $ 177,326  
  

 

 

    

 

 

    

 

 

 

The following table presents the amortization expense of the Company’s definite-lived purchased intangible assets, included in each financial statement caption reported in the consolidated statements of income:

 

     Year Ended September 30,  
     2018      2017      2016  

Cost of revenue

   $ 572      $ 1,405      $ 1,609  

Amortization of definite-lived purchased intangible assets

     105,213        108,453        96,465  
  

 

 

    

 

 

    

 

 

 

Total

   $ 105,785      $ 109,858      $ 98,074  
  

 

 

    

 

 

    

 

 

 

The estimated future amortization expense of definite-lived purchased intangible assets as of September 30, 2018 is as follows:

 

     Amount  

Fiscal year:

  

2019

   $ 92,693  

2020

     61,527  

2021

     42,554  

2022

     30,380  

2023

     14,682  

Thereafter

     23,413  
  

 

 

 

Total

   $ 265,249