Intangible Assets and Goodwill

6 Months Ended

Mar. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of the following:


Description	As of March 30, 2024				As of September 30, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Acquired intangible assets:
Developed technology	$	4,389.4	$	3,742.2	$	4,411.0	$	3,649.5
In-process research and development	21.9		—		25.7		—
Customer relationships	601.0		561.7		600.0		550.6
Trade names	253.0		221.0		253.6		212.8



Total acquired intangible assets	$	5,265.3	$	4,524.9	$	5,290.3	$	4,412.9

Internal-use software	25.5		19.4		24.0		17.8
Capitalized software embedded in products	29.0		23.6		27.7		22.7
Total intangible assets	$	5,319.8	$	4,567.9	$	5,342.0	$	4,453.4

The estimated remaining amortization expense of the Company’s acquired intangible assets as of March 30, 2024 for each of the five succeeding fiscal years was as follows:


Remainder of Fiscal 2024	$	97.8
Fiscal 2025	$	183.2
Fiscal 2026	$	153.3
Fiscal 2027	$	66.3
Fiscal 2028	$	63.2

During the second quarter of fiscal 2024, in connection with commencing its company-wide annual strategic planning process, the Company identified indicators of impairment in its BioZorb product line, which was part of the Focal acquisition. As a result, the Company performed an undiscounted cash flow analysis pursuant to ASC 360, Property, Plant and Equipment - Overall, to determine if the cash flows expected to be generated by the BioZorb product line over the remaining estimated useful life of the primary asset were sufficient to recover the carrying value of the asset group. Based on this analysis the undiscounted cash flows were not sufficient to recover the carrying value of the long-lived assets. Therefore, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group. To estimate the fair value of the asset group, the Company utilized the income approach, which is based on a discounted cash flow (DCF) analysis and calculated the fair value by estimating the after-tax cash flows attributable to the asset group and then discounting the after-tax cash flows to present value using a risk-adjusted discount rate. Based on this analysis, the fair value of the BioZorb asset group was below its carrying value and the Company recorded an impairment charge of $26.8 million during the second quarter of fiscal 2024. The impairment charge was allocated to the long-lived assets on a pro-rata basis as follows: $25.9 million to developed technology and $0.9 million to trade names, which reduced the carrying value of the assets to $13.9 million and $0.5 million respectively. The Company also re-evaluated the remaining useful lives of the intangible assets and concluded no changes were necessary.

During the first quarter of fiscal 2024, the Company assessed its only in-process research and development intangible asset from its Mobidiag acquisition for impairment. The Company determined the fair value of this indefinite lived asset utilizing the DCF model and recorded a $4.3 million impairment charge, reducing the fair value of this asset to $22.4 million. The reduction in fair value of this asset was primarily due to a reduction in forecasted revenues and a delay in the timing of completing the project. In addition, the Company determined that the useful life of the customer relationship and trade name intangible assets from its Mobidiag acquisition should be shortened and recorded accelerated amortization expense of $7.3 million to bring the net carrying values to zero.