Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2017

9) Goodwill and Other Intangible Assets

Goodwill

The Company performs a qualitative, and when necessary quantitative, impairment test on its goodwill annually on August 31^st. This qualitative assessment includes reviewing factors such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and other relevant entity-specific events. Under FASB ASC 350-10-05 Intangibles-Goodwill and Other, goodwill impairment if any, needs to be determined if the net book value of a reporting unit exceeds its estimated fair value. If goodwill of a reporting unit is determined to be impaired, the amount of impairment is measured based on the excess of the net book value of the goodwill over the implied fair value of the goodwill.

The Company performed its annual goodwill impairment valuation in each of the periods ending August 31, 2017, 2016, and 2015, and it was determined based on each year’s analysis that there was no goodwill impairment.

A summary of changes in the Company’s goodwill during the fiscal years ended September 30, 2017 and 2016 are as follows (in thousands):


Balance as of September 30, 2015	$	211,045
Fiscal year 2016 business combinations		1,715

Balance as of September 30, 2016		212,760
Fiscal year 2017 business combinations		13,155

Balance as of September 30, 2017	$	225,915

Intangibles, net

Intangible assets subject to amortization consist of the following (in thousands):


	September 30,
	2017								2016
	Gross Carrying Amount		Accum. Amortization		Net		Gross Carrying Amount		Accum. Amortization		Net
Customer lists	$	346,784	$	264,632	$	82,152	$	327,388	$	250,427	$	76,961
Trade names and other intangibles		32,047		8,981		23,066		27,134		6,439		20,695

Total	$	378,831	$	273,613	$	105,218	$	354,522	$	256,866	$	97,656

Amortization expense for intangible assets was $16.7 million, $15.4 million, and $13.5 million, for the fiscal years ended September 30, 2017, 2016, and 2015, respectively. Total estimated annual amortization expense related to intangible assets subject to amortization, for the year ended September 30, 2018 and the four succeeding fiscal years ended September 30, is as follows (in thousands):


	Amount
2018	$	18,483
2019	$	16,859
2020	$	15,095
2021	$	12,374
2022	$	10,349

- 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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