7. Intangible Assets, Goodwill, Acquisitions, and Divestitures

Intangible Assets

Identifiable intangible assets consist of acquired customer contracts and relationships, trademarks and non-compete agreements. Amortization expense related to intangible assets was $29.3, $35.8 and $44.5 for the years ended September 30, 2025, September 30, 2024 and September 30, 2023, respectively. These assets are amortized over their estimated useful lives, the reasonableness of which are continually evaluated by the Company. There were no intangible assets acquired during the years ended September 30, 2025 and September 30, 2024.

Intangible assets as of September 30, 2025 and September 30, 2024 consisted of the following:

 

 

 

 

 

September 30, 2025

 

 

September 30, 2024

 

 

 

Estimated
Useful Life

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

Customer relationships

 

6-21 yrs.

 

$

715.9

 

 

$

(649.4

)

 

$

715.9

 

 

$

(620.1

)

Total intangible assets

 

 

 

$

715.9

 

 

$

(649.4

)

 

$

715.9

 

 

$

(620.1

)

 

Amortization expense is anticipated to be as follows in future years:

 

Fiscal Year Ended September 30,

 

 

 

2026

 

$

21.8

 

2027

 

 

15.2

 

2028

 

 

11.1

 

2029

 

 

7.2

 

2030

 

 

3.2

 

2031 and thereafter

 

 

8.0

 

 

 

$

66.5

 

Goodwill

The following is a summary of the goodwill activity for the periods ended September 30, 2024 and September 30, 2025:

 

 

 

Maintenance
Services

 

 

Development
Services

 

 

Total

 

Balance, September 30, 2023

 

$

1,803.4

 

 

$

218.0

 

 

$

2,021.4

 

Acquisitions (1)

 

 

0.1

 

 

 

 

 

 

0.1

 

Divestiture

 

 

(5.8

)

 

 

 

 

 

(5.8

)

Balance, September 30, 2024

 

$

1,797.7

 

 

$

218.0

 

 

$

2,015.7

 

Balance, September 30, 2025

 

$

1,797.7

 

 

$

218.0

 

 

$

2,015.7

 

 

(1)
The acquisitions adjustments include the immaterial impact of foreign currency and other prior year measurement period adjustments during the respective periods.

 

The Company performed its annual goodwill impairment assessment as of July 1, 2025 utilizing a quantitative test approach as described in Note 2 "Summary of Significant Accounting Policies".

Divestiture

On January 12, 2024, the Company completed the sale of one of its fully owned subsidiaries, U.S. Lawns, for total cash consideration of $51.0. The gain on the transaction of $43.6 is included in Gain on divestiture in the Consolidated Statements of Operations for the year ended September 30, 2024. The Maintenance Services operating segment includes the operations of the divested entity, and its results of operations are included in the Consolidated Statements of Operations through January 12, 2024. The company disposed of the U.S. Lawns customer relationships and trademarks as part of the divestiture.

Historical Timeline

Fiscal YearFiled
2025Nov 19, 2025Showing above
2024Nov 13, 2024
2023Nov 16, 2023
2022Nov 17, 2022
2021Nov 17, 2021
2020Nov 18, 2020
2019Nov 21, 2019
2018Nov 28, 2018

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.