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Goodwill and Intangible Assets | 9 Months Ended
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Jul. 01, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes the changes in the carrying value of goodwill:
|  | GSG |  | CIG |  | Total
|  | (in thousands)
Balance at October 1, 2017 |  | $ | 361,761 |  |  | $ | 379,125 |  |  | $ | 740,886 |
Acquisition activity |  | 28,681 |  |  | 62,034 |  |  | 90,715 |
Divestiture activity |  | — |  |  | (12,160 | ) |  | (12,160 | )
Translation and other |  | (1,568 | ) |  | (22,121 | ) |  | (23,689 | )
Balance at July 1, 2018 |  | $ | 388,874 |  |  | $ | 406,878 |  |  | $ | 795,752 |
During the first nine months of fiscal 2018, we recorded goodwill additions as a result of our recent acquisitions. The purchase price allocations for these acquisitions are preliminary, and subject to adjustments based upon the final determination of the net assets acquired and information to perform the final valuation. Additionally, we reported a goodwill reduction of $12.2 million as a result of the divestiture of our non-core utility field services operations. Our goodwill was also impacted by foreign exchange related to our foreign subsidiaries with functional currencies that are different than our reporting currency. The gross amounts of goodwill for GSG were $406.6 million and $379.5 million at July 1, 2018 and October 1, 2017, respectively, excluding $17.7 million of accumulated impairment. The gross amounts of goodwill for CIG were $504.8 million and $477.0 million at July 1, 2018 and October 1, 2017, respectively, excluding $97.9 million of accumulated impairment. We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our most recent annual review at July 3, 2017 (i.e. the first day of our fourth quarter in fiscal 2017) indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill. We regularly evaluate whether events and circumstances have occurred that may indicate a potential change in the recoverability of goodwill. We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, such as a deterioration in general economic conditions; an increase in the competitive environment; a change in management, key personnel, strategy, or customers; negative or declining cash flows; or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. The reorganization of our core operations, described in Note 1, “Basis of Presentation” and Note 10, “Reportable Segments”, also impacted the composition of our reporting units for goodwill impairment testing. As a result, on October 2, 2017, we performed impairment testing for goodwill under our new segment structure and determined that the estimated fair value of each new reporting unit exceeded its corresponding carrying amount including recorded goodwill. Although we believe that our estimates of fair value for our reporting units are reasonable, if financial performance for our reporting units falls significantly below our expectations or market prices for similar businesses decline, the goodwill for our reporting units could become impaired. We estimate the fair value of all reporting units with a goodwill balance based on a comparison and weighting of the income approach (weighted 70%), specifically the discounted cash flow method, and the market approach (weighted 30%), which estimates the fair value of our reporting units based upon comparable market prices and recent transactions and also validates the reasonableness of the multiples from the income approach. The resulting fair value is most sensitive to the assumptions we use in our discounted cash flow analysis. The assumptions that have the most significant impact on the fair value calculation are the reporting unit’s revenue growth rate and operating profit margin, and the discount rate used to convert future estimated cash flows to a single present value amount. The gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in “Intangible assets - net” on our consolidated balance sheets, were as follows:
| July 1, 2018 |  | October 1, 2017
| Weighted- Average Remaining Life (in Years) |  | Gross Amount |  | Accumulated Amortization |  | Gross Amount |  | Accumulated Amortization
| ($ in thousands)
Non-compete agreements | 0.0 |  | $ | 81 |  |  | $ | (81 | ) |  | $ | 495 |  |  | $ | (493 | )
Client relations | 2.6 |  | 54,446 |  |  | (44,589 | ) |  | 90,297 |  |  | (75,074 | )
Backlog | 0.8 |  | 22,620 |  |  | (19,301 | ) |  | 21,518 |  |  | (13,301 | )
Trade names | 2.5 |  | 5,107 |  |  | (2,905 | ) |  | 6,685 |  |  | (3,439 | )
Total |  |  | $ | 82,254 |  |  | $ | (66,876 | ) |  | $ | 118,995 |  |  | $ | (92,307 | )
The gross amount and accumulated amortization for client relations decreased due to the full amortization of assets as of fiscal 2017 year-end. Amortization expense for the three and nine months ended July 1, 2018 was $5.2 million and $14.9 million, respectively, compared to $5.6 million and $17.4 million for the prior-year periods. Estimated amortization expense for the remainder of fiscal 2018 and succeeding years is as follows:
| Amount
| (in thousands)
2018 | $ | 4,043 |
2019 | 6,295 |
2020 | 2,758 |
2021 | 1,642 |
2022 | 411 |
Beyond | 229 |
Total | $ | 15,378 |

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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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