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Goodwill and Other Intangible Assets | 12 Months Ended
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Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following (in thousands):
|  | September 30, |
|  | 2019 |  |  | 2018 |
|  |  |  |  | (As Revised) |
Indefinite useful lives: |  |  |  |  |  |  |  |
Goodwill |  | $ | 53,630 |  |  | $ | 43,591 |
Licenses |  |  | 72,597 |  |  |  | 67,523 |
Tradename |  |  | 2,215 |  |  |  | 2,215 |
|  |  | 128,442 |  |  |  | 113,329 |
|  | Amortization Period |  |  |  |  |  |
Definite useful lives: |  |  |  |  |  |  |  |  |  |
Discounted leases |  | 18 & 6 years |  |  | 101 |  |  |  | 108 |
Non-compete agreements |  | 5 years |  |  | 565 |  |  |  | 588 |
Software |  | 5 years |  |  | 315 |  |  |  | 834 |
Distribution agreement |  | 3 years |  |  | 158 |  |  |  | 264 |
|  |  |  |  | 1,139 |  |  |  | 1,794 |
Total goodwill and other intangible assets |  |  |  | $ | 129,581 |  |  | $ | 115,123 |
|  | 2019 |  |  | 2018 |
|  | Definite- Lived Intangibles |  |  | Indefinite- Lived Intangibles |  |  | Goodwill |  |  | Definite- Lived Intangibles |  |  | Indefinite- Lived Intangibles |  |  | Goodwill |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (As Revised) |
Beginning balance |  | $ | 1,794 |  |  | $ | 69,738 |  |  | $ | 43,591 |  |  | $ | 1,565 |  |  | $ | 72,859 |  |  | $ | 43,866 |
Acquisitions |  |  | 243 |  |  |  | 5,252 |  |  |  | 11,677 |  |  |  | 483 |  |  |  | - |  |  |  | 559 |
Impairment |  |  | - |  |  |  | (178 | ) |  |  | (1,638 | ) |  |  | - |  |  |  | (3,121 | ) |  |  | (834 | )
Amortization |  |  | (898 | ) |  |  | - |  |  |  | - |  |  |  | (254 | ) |  |  | - |  |  |  | - |
Ending balance |  | $ | 1,139 |  |  | $ | 74,812 |  |  | $ | 53,630 |  |  | $ | 1,794 |  |  | $ | 69,738 |  |  | $ | 43,591 |
As of September 30, 2019 and 2018, the accumulated impairment balance of indefinite-lived intangibles was $6.1 million and $5.9 million, respectively, while the accumulated impairment balance of goodwill was $6.3 million and $4.7 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2019 is: 2020 - $519,000; 2021 - $353,000; 2022 - $134,000; 2023 - $59,000; 2024 - $11,000; and thereafter - $63,000. Indefinite-lived intangible assets consist of sexually oriented business licenses and tradename, which were obtained as part of acquisitions. These licenses are the result of zoning ordinances, thus are valid indefinitely, subject to filing annual renewal applications, which are done at minimal costs to the Company. The discounted cash flow of the income approach method was used in calculating the value of these licenses in a business combination, while the relief from royalty method was used in calculating the value of tradenames. During the fiscal year ended September 30, 2019, the Company recognized a $178,000 impairment related to one club’s SOB license and a $1.6 million impairment related to the goodwill of four reporting units. During the fiscal year ended September 30, 2018, the Company recognized a $3.1 million impairment related to three clubs’ SOB licenses and an $834,000 impairment related to the goodwill of two reporting units. During the year ended September 30, 2017, the Company recognized an impairment loss of $4.7 million related to the goodwill of four reporting units, including one held for sale, as well as an impairment loss of $1.4 million related to two locations’ SOB licenses. See Note 17.

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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 http://asc.fasb.org/topic&trid=2144416 + Details
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