Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $34.2 million at December 31, 2019, representing the excess of costs over fair value of assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table summarizes changes in the balance of goodwill during the three months ended December 31, 2019 (amounts shown in thousands):


Balance at September 30, 2019	$	32,636
Other adjustments(1)	806
Foreign currency effect on goodwill and other	792
Balance at December 31, 2019	$	34,234

(1)During the three months ended December 31, 2019, the Company determined that it had incorrectly classified $0.8 million of contract assets in its fair value estimate associated with the acquisition of A2iA. This asset was incorrectly recorded as other non-current assets with an offset to goodwill on the Company’s consolidated balance sheet during the three months ended June 30, 2018 and subsequent financial statements. The Company has determined that the adjustment was not material to any previously reported financial statements. Therefore, the consolidated balance sheet as of December 31, 2019 has been adjusted.

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets range from two to seven years. Intangible assets as of December 31, 2019 and September 30, 2019, respectively, are summarized as follows (amounts shown in thousands, except for years):


December 31, 2019:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	7,543	$	12,798
Customer relationships	4.8 years	17,628		7,302		10,326
Trade names	4.5 years	618		406		212
Total intangible assets		$	38,587	$	15,251	$	23,336


September 30, 2019:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.4 years	$	20,341	$	7,104	$	13,237
Customer relationships	4.8 years	17,628		6,701		10,927
Trade names	4.5 years	618		377		241
Total intangible assets		$	38,587	$	14,182	$	24,405

Amortization expense related to acquired intangible assets was $1.6 million and $1.8 million for the three months ended December 31, 2019 and 2018, respectively, and is recorded within acquisition-related costs and expenses on the consolidated statements of operations and other comprehensive income (loss).

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts shown in thousands):


	Estimated Future Amortization Expense
2020—remaining	$	4,776
2021	6,132
2022	5,737
2023	3,765
2024	1,778
2025	1,148

Total	$	23,336