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Goodwill and Intangible Assets, Net
12 Months Ended
Sep. 30, 2019
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, 2017
  $
2,221,209
 
Goodwill resulting from acquisitions(1)
   
227,283
 
Other
   
(3,597
)
         
As of September 30, 2018
  $
2,444,895
 
Goodwill resulting from acquisitions(2)
   
17,484
 
Other
   
456
 
         
As of September 30, 2019
  $
2,462,835
 
         
 
(1) Mainly relates to the acquisitions of Vubiquity, projekt202 and UXP. In allocating the total purchase price for Vubiquity, based on estimated fair values, the Company recorded $148,184 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 purchase price of projekt202, based on estimated fair values, the Company recorded $34,390 of goodwill and $19,835 of customer relationships to be amortized over four years. In allocating the total purchase price of UXP, based on estimated fair values, the Company recorded $40,629 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.
(2) Mainly relates to the acquisitions of TTS. In allocating the total preliminary purchase price for TTS, based on estimated fair values, the Company recorded $10,032 of goodwill, $29,500 of customer relationships to be amortized over approximately six years, $2,100 of core technology to be amortized over approximately six years and $1,300 of trade mark to be amortized over four 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 2019, 2018 or 2017.
The following table presents details regarding the Company’s total definite-lived purchased intangible assets:
 
Gross
 
 
Accumulated
Amortization
 
 
Net
 
September 30, 2019
 
 
 
 
 
 
 
 
 
Core technology(1)
  $
775,479
    $
(690,961
)   $
84,518
 
Customer relationships
   
594,555
     
(483,313
)    
111,242
 
Other
   
44,946
     
(35,544
)    
9,402
 
                         
Total
  $
1,414,980
    $
(1,209,818
)   $
205,162
 
                         
September 30, 2018
 
 
 
 
 
 
 
 
 
Core technology(1)
  $
773,380
    $
(628,932
)   $
144,448
 
Customer relationships
   
563,656
     
(453,137
)    
110,519
 
Other
   
43,646
     
(33,364
)    
10,282
 
                         
Total
  $
1,380,682
    $
(1,115,433
)   $
265,249
 
                         
 
(1) Amounts previously presented separately as Intellectual property rights and purchased computer software are included in Core Technology as the nature of the intangible is consistent with the Core technology category. The asset was fully amortized as of 2019 and 2018, and consisted of gross asset of $51,996 and accumulated amortization of $51,996.
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,
 
 
2019
 
 
2018
 
 
2017
 
Cost of revenue
  $
180
    $
572
    $
1,405
 
Amortization of definite-lived purchased intangible assets
   
94,205
     
105,213
     
108,453
 
                         
Total
  $
94,385
    $
105,785
    $
109,858
 
                         
The estimated future amortization expense of definite-lived purchased intangible assets as of September 30, 2019 is as follows:
 
Amount
 
Fiscal year:
 
 
 
2020
  $
70,138
 
2021
   
47,114
 
2022
   
34,940
 
2023
   
18,904
 
2024
   
11,186
 
Thereafter
   
22,880
 
         
Total
  $
205,162