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Goodwill and Other Identifiable Intangible Assets, Net | 6 Months Ended
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Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Amortizable intangible assets were (in thousands):
| March 31, 2022 |  | September 30, 2021
| Gross carrying amount |  | Accum. amort. |  | Net |  | Gross carrying amount |  | Accum. amort. |  | Net
Purchased and core technology | $ | 85,194 |  |  | $ | (53,425) |  |  | $ | 31,769 |  |  | $ | 69,162 |  |  | $ | (50,701) |  |  | $ | 18,461 |
License agreements | 112 |  |  | (112) |  |  | — |  |  | 112 |  |  | (112) |  |  | — |
Patents and trademarks | 39,608 |  |  | (16,276) |  |  | 23,332 |  |  | 23,491 |  |  | (14,978) |  |  | 8,513 |
Customer relationships | 309,292 |  |  | (48,846) |  |  | 260,446 |  |  | 130,278 |  |  | (39,973) |  |  | 90,305 |
Non-compete agreements | 600 |  |  | (600) |  |  | — |  |  | 600 |  |  | (600) |  |  | — |
Order backlog | 1,000 |  |  | (750) |  |  | 250 |  |  | 1,000 |  |  | (250) |  |  | 750 |
Total | $ | 435,806 |  |  | $ | (120,009) |  |  | $ | 315,797 |  |  | $ | 224,643 |  |  | $ | (106,614) |  |  | $ | 118,029 |
Amortization expense was $7.0 million and $3.9 million for the three months ended March 31, 2022 and 2021, respectively and $13.4 million and $7.9 million for the six months ended March 31, 2022 and 2021, respectively. Amortization expense is recorded on our condensed consolidated statements of operations within cost of sales and in general and administrative expense. Estimated amortization expense related to intangible assets for the remainder of fiscal 2022 and the five succeeding fiscal years is (in thousands):
2022 (six months) | $ | 13,716 |
2023 | $ | 24,996 |
2024 | $ | 24,282 |
2025 | $ | 20,825 |
2026 | $ | 20,593 |
2027 | $ | 18,582 |
The changes in the carrying amount of goodwill by reportable segments are (in thousands):
| Six months ended March 31, 2022
| IoT Products and Services |  | IoT Solutions |  | Total
Balance on September 30, 2021 | $ | 175,180 |  |  | $ | 50,342 |  |  | $ | 225,522 |
Acquisition | — |  |  | 116,890 |  |  | 116,890 |
Adjustment | (515) |  |  | — |  |  | (515) |
Foreign currency translation adjustment | (413) |  |  | 161 |  |  | (252) |
Balance at March 31, 2021 | $ | 174,252 |  |  | $ | 167,393 |  |  | $ | 341,645 |
Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We continue to have two reportable segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 8). Effective with the reorganization announcement on October 7, 2020, our IoT Products & Services business is now structured to include four reporting units under the IoT Products & Services segment, each with a reporting manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. We had four reporting units along with our IoT Solutions segment that were tested individually for impairment during our third quarter fiscal 2021 annual impairment test. Following our acquisition of Ventus in November, 2021, we have two reporting units within our IoT Solutions segment that will be tested for impairment during our Fiscal 2022 annual impairment test in addition to the four reporting units included in IoT Products & Services. 6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Results of our Fiscal 2021 Annual Impairment Test As of June 30, 2021, we had a total of $32.7 million of goodwill for the Enterprise Routers reporting unit, $60.2 million of goodwill for the Console Servers reporting unit, $63.4 million of goodwill for the OEM Solutions reporting unit, $15.4 million of goodwill for the Infrastructure Mgmt. reporting unit and $49.5 million of goodwill for the IoT Solutions reporting unit. At June 30, 2021, fair value exceeded the carrying value by more than 20% for all five reporting units. Implied fair values for each reporting unit was calculated on a standalone basis using a weighted combination of the income approach and market approach. The implied fair values of each reporting unit were added together along with our unallocated assets to get an indicated value of total equity to which a range of indicated value of total equity was derived. This range was compared to the total market capitalization of $686.3 million as of June 30, 2021. This implied a range of control (deficit)/ premiums of (4.5)% to 5.4%. This range of control premiums fell below the control premiums observed in the last five years in the communications equipment industry. As a result, the market capitalization reconciliation analysis proved support for the reasonableness of the fair values estimated for each individual reporting unit.

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