GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The Company held a total of $98.9 million of goodwill as of December 31, 2016. The recorded goodwill was due to two separate business combinations during fiscal 2015 and two separate business combinations during the first quarter of fiscal 2017: $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014; $25.4 million of goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015; $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016; and $31.6 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The goodwill associated with these transactions is deductible for tax purposes.

As part of each business combination, the Company also recognized the following amortizable intangible assets:



AFS/IBEX
Intangible	Amount Upon Acquisition		Accumulated Amortization		Balance at December 31, 2016	Book Amortization Period (Years)	Method
Trademark	$	540	(75	)	465	15	Straight Line
Non-Compete	260		(181	)	79	3	Straight Line
Customer Relationships	7,240		(2,543	)	4,697	30	Accelerated
Technology/Other	173		(105	)	68	Varied	Straight Line
Total	$	8,213	(2,904	)	5,309



Refund Advantage
Intangible	Amount Upon Acquisition		Accumulated Amortization		Balance at December 31, 2016	Book Amortization Period (Years)	Method
Trademark	$	4,950	(343	)	4,607	15	Accelerated
Non-Compete	40		(18	)	22	3	Straight Line
Customer Relationships	18,800		(3,789	)	15,011	12 to 20	Accelerated
Technology/Other	329		(90	)	239	Varied	Straight Line
Total	$	24,119	(4,240	)	19,879



EPS
Intangible	Amount Upon Acquisition		Accumulated Amortization		Balance at December 31, 2016	Book Amortization Period (Years)	Method
Trademark	$	5,190	(39	)	5,151	15	Accelerated
Non-Compete	1,630		(55	)	1,575	Varied	Straight Line
Customer Relationships	10,110		(311	)	9,799	20	Accelerated
Technology/Other	1,000		(55	)	945	3	Straight Line
Total	$	17,930	(460	)	17,470



SCS
Intangible	Amount Upon Acquisition		Accumulated Amortization		Balance at December 31, 2016	Book Amortization Period (Years)	Method
Trademark	$	290	(4	)	286	5	Accelerated
Non-Compete	580		(6	)	574	Varied	Straight Line
Customer Relationships	22,120		—		22,120	Varied	Accelerated
Technology/Other	5,100		(14	)	5,086	15	Straight Line
Total	$	28,090	(24	)	28,066



Other
Intangible	Total Accumulated Costs, Net ⁽¹⁾		Accumulated Amortization		Balance at December 31, 2016	Book Amortization Period (Years)	Method
Technology/Other	$	3,110	(362	)	2,748	Varied	Straight Line
Total	$	3,110	(362	)	2,748

⁽¹⁾Net of Patents write-offs, to date, totaling, $378K.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the three months ended December 31, 2016 and 2015 were as follows:



	2016		2015
	(Dollars in Thousands)
Goodwill
Balance as of September 30,	$	36,928	$	36,928
Acquisitions during the period	61,970		—
Write-offs during the period	—		—
Balance as of December 31,	$	98,898	$	36,928



	Trademark			Non-Compete			Customer Relationships			All Others			Total
Intangibles
Balance as of September 30, 2016	$	5,149		$	127		$	20,590		$	3,055		$	28,921
Acquisitions during the period	5,480			2,210			32,230			6,156			46,076
Amortization during the period	(120		)	(86		)	(1,193		)	(126		)	(1,525		)
Write-offs during the period	—			—			—			—			—
Balance as of December 31, 2016	$	10,509		$	2,251		$	51,627		$	9,085		$	73,472



	Trademark			Non-Compete			Customer Relationships			All Others			Total
Intangibles
Balance as of September 30, 2015	$	5,439		$	227		$	24,811		$	3,100		$	33,577
Acquisitions during the period	—			—			—			54			54
Amortization during the period	(72		)	(25		)	(1,064		)	(52		)	(1,213		)
Write-offs during the period	—			—			—			—			—
Balance as of December 31, 2015	$	5,367		$	202		$	23,747		$	3,102		$	32,418

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairment to intangible assets during the three months ended December 31, 2016 and 2015. The annual goodwill impairment test will be conducted at September 30, 2017.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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