GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The Company held a total of $98.7 million of goodwill as of March 31, 2018. 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. The fiscal 2015 business combinations included $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 and $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. The fiscal 2017 business combinations included $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS Financial, LLC on November 1, 2016, and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of Specialty Consumer Services LP on December 14, 2016. The goodwill associated with these transactions is deductible for tax purposes.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2018 and 2017 were as follows:



	2018		2017
Six Months Ended March 31,	(Dollars in Thousands)
Goodwill
Beginning balance	$	98,723	$	36,928
Acquisitions during the period	—		61,795
Write-offs during the period	—		—
Ending balance	$	98,723	$	98,723



	Trademark⁽¹⁾			Non-Compete⁽²⁾			Customer Relationships⁽³⁾			All Others⁽⁴⁾			Total
Intangibles
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽¹⁾ Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3-5 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.



	Trademark⁽¹⁾			Non-Compete⁽²⁾			Customer Relationships⁽³⁾			All Others⁽⁴⁾			Total
Intangibles
Balance as of September 30, 2016	$	5,149		$	127		$	20,590		$	3,055		$	28,921
Acquisitions during the period	5,500			2,180			31,770			6,869			46,319
Amortization during the period	(282		)	(228		)	(7,735		)	(362		)	(8,607		)
Write-offs during the period	—			—			—			—			—
Balance as of March 31, 2017	$	10,367		$	2,079		$	44,625		$	9,562		$	66,633

Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,426		$	81,706
Accumulated amortization	(623		)	(401		)	(13,185		)	(864		)	(15,073		)
Balance as of March 31, 2017	$	10,367		$	2,079		$	44,625		$	9,562		$	66,633

⁽¹⁾ Book amortization period of 15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining six months of fiscal 2018 and subsequent fiscal years is as follows:



	(Dollars in Thousands)
Remaining in 2018	$	3,297
2019	7,151
2020	5,753
2021	5,184
2022	4,262
2023	3,624
Thereafter	18,453
Total anticipated intangible amortization	$	47,724

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairments to intangible assets during the three and six months ended March 31, 2018 or 2017. The annual goodwill impairment test for fiscal 2018 will be conducted at September 30, 2018.

- 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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