Annual report [Section 13 and 15(d), not S-K Item 405]

Goodwill

v3.25.3
Goodwill
 12 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Note 7:    Goodwill
The following table details the Company's goodwill as of September 30, 2025 and 2024 (in 000’s):
Retail - Entertainment Retail - Flooring Flooring Manufacturing Steel Manufacturing Corporate Total
September 30, 2023 $ 36,947  $ 30,419  $ 807  $ 7,693  $ —  $ 75,866 
CRO acquisition —  89  —  —  —  89 
Central Steel acquisition —  —  —  2,906  —  2,906 
Goodwill adjustments —  999  —  (652) —  347 
Goodwill impairment —  (18,056) —  —  —  (18,056)
September 30, 2024 36,947  13,451  807  9,947  —  61,152 
September 30, 2025 $ 36,947  $ 13,451  $ 807  $ 9,947  $ —  $ 61,152 
The Company accounts for purchased goodwill and intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other (see Note 2). Goodwill recognized during the year ended September 30, 2024 was approximately $3.0 million, and was due to the acquisitions of CRO and Central Steel (see Note 3).
The Company performs its annual goodwill impairment test as of July 1 each year and monitors for potential triggering events throughout the year that may indicate the carrying value of a reporting unit exceeds its fair value. No goodwill impairment was recognized for the fiscal year ended September 30, 2025.
During the annual test conducted on July 1, 2024, the Company identified negative cash flows at Flooring Liquidators, primarily driven by adverse macroeconomic conditions affecting the floor covering industry. Based on a quantitative assessment, the Company determined that the carrying value of Flooring Liquidators’ goodwill exceeded its estimated fair value and recorded an impairment charge of $18.1 million for the fiscal year ended September 30, 2024.
The quantitative goodwill impairment assessment consisted of a fair value calculation that combines an income approach, using a discounted cash flow method, and a market approach. The quantitative goodwill impairment assessment requires the application of a number of significant assumptions, including estimates of future revenue growth rates, EBITDA margins, discount rates and market multiples. The projected future revenue growth rates and EBITDA margins, and the resulting projected cash flows are based on historical experience and internal annual operating plans reviewed by management, extrapolated over the forecast period. Discount rates are determined using a weighted average cost of capital adjusted for risk factors specific to the reporting units. Market multiples are based on the guideline public company method using comparable publicly traded company multiples of revenue and EBITDA for a group of benchmark companies.
The Company also reviews long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying value of an asset group to future undiscounted net cash flows expected to be generated by the asset group. The undiscounted cash flows for Flooring Liquidator’s long-lived asset group were above the carrying value and the Company determined that the long-lived asset group was recoverable, and, as such, no impairment existed as of September 30, 2025.