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Goodwill and Other Intangible Assets | 9 Months Ended
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Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 7. Goodwill and Other Intangible Assets (a) Goodwill We believe our Chief Executive Officer (“CEO”) is our chief operating decision maker (“CODM”). Our CEO approves all major decisions, including reorganizations and new business initiatives. Our CODM reviews routine consolidated operating information and makes decisions on the allocation of resources at this level, as such, we have concluded that we have one operating segment. All goodwill is assigned to one or more reporting units. A reporting unit represents an operating segment or a component within an operating segment for which discrete financial information is available and is regularly reviewed by segment management for performance assessment and resource allocation. Upon consideration of our components, we have concluded that our goodwill is associated with one reporting unit. Due to the current macroeconomic conditions, we concluded that indicators of impairment were present and performed an interim quantitative impairment test as of June 30, 2022. The fair value of our reporting unit was determined using a combination of the income approach and the market approach. For the income approach, fair value was determined based on the present value of estimated future after-tax cash flows, discounted at an appropriate risk-adjusted rate. We used our internal forecasts, which were revised to reflect the anticipated impact of the semiconductor shortage, to estimate future after-tax cash flows and estimate the long-term growth rates based on our most recent views of the long-term outlook for our reporting unit. For the market approach, we used a valuation technique in which values were derived based on valuation multiples of comparable publicly traded companies. We weighted the methodologies appropriately to estimate a fair value of approximat ely $995 million as of June 30, 2022. The estimated fair value exceeded the $950 million carrying value of our reporting unit by approximately $45 million, or 5% of the carrying value. Based upon the results of the impairment test, no goodwill impairment was recorded as of June 30, 2022. The full extent to which the ongoing macroeconomic conditions could adversely affects our financial performance will depend on future developments, many of which are outside of our control. These uncertainties could adversely impact the significant estimates and assumptions, which we believe to be reasonable, that are incorporated in our valuation techniques used to estimate the fair value of our reporting unit on June 30, 2022. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, new market penetration, and determination of appropriate market comparables. Adverse impacts to the estimates and assumptions used in our valuation techniques could result in the determination that all or a portion of our goodwill may be impaired in future periods. The changes in the carrying amount of goodwill for the nine months ended June 30, 2022 are as follows (dollars in thousands):
|  | Total |
Balance as of September 30, 2021 |  | $ | 1,128,511 |
Effect of foreign currency translation |  |  | (13,955 | )
Balance as of June 30, 2022 |  | $ | 1,114,556 |
(b) Intangible Assets, Net Due to the current macroeconomic conditions, we concluded that indicators of impairment were present and performed an interim test for recoverability of our long-lived asset group as of June 30, 2022. Based upon the results of the recoverability test, we determined that the carrying amounts of the long-lived asset group were considered recoverable, concluding the test and resulting in no impairment of our long-lived asset group as of June 30, 2022. The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):
|  | June 30, 2022 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Weighted Average Remaining Life (Years) |
Customer relationships |  | $ | 106,870 |  |  | $ | (94,945 | ) |  | $ | 11,925 |  |  |  | 1.8 |
Technology and patents |  |  | 89,527 |  |  |  | (88,906 | ) |  |  | 621 |  |  |  | 1.5 |
Total |  | $ | 196,397 |  |  | $ | (183,851 | ) |  | $ | 12,546 |  |  |  |
|  | September 30, 2021 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Weighted Average Remaining Life (Years) |
Customer relationships |  | $ | 110,485 |  |  | $ | (88,638 | ) |  | $ | 21,847 |  |  |  | 2.2 |
Technology and patents |  |  | 90,738 |  |  |  | (87,237 | ) |  |  | 3,501 |  |  |  | 0.9 |
Total |  | $ | 201,223 |  |  | $ | (175,875 | ) |  | $ | 25,348 |  |  |  |
Amortization expense related to intangible assets in the aggregate was $2.9 million and $5.1 million for the three months ended June 30, 2022 and 2021, respectively, and $12.0 million and $15.2 million for the nine months ended June 30, 2022 and 2021, respectively. We expect amortization of intangible assets to be approximately $2.5 million f or the remainder of fiscal year 2022.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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