XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Goodwill and Intangible Assets | 9 Months Ended
--- | ---
Jun. 27, 2021
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 by reportable segment:
|  | GSG |  | CIG |  | Total
|  | (in thousands)
Balance at September 27, 2020 |  | $ | 516,315 |  |  | $ | 477,183 |  |  | $ | 993,498 |
Acquisition activity |  | 14,891 |  |  | 3,675 |  |  | 18,566 |
Translation |  | 10,099 |  |  | 29,633 |  |  | 39,732 |
Balance at June 27, 2021 |  | $ | 541,305 |  |  | $ | 510,491 |  |  | $ | 1,051,796 |
Our goodwill balances reflect foreign currency translation adjustments related to our foreign subsidiaries with functional currencies that are different than our reporting currency. These amounts are presented net of reductions from historical impairment adjustments. The gross amounts o f goodwill for GSG were $559.0 million and $534.0 million at June 27, 2021 and September 27, 2020, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $632.0 million and $598.7 million at June 27, 2021 and September 27, 2020, respectively, excluding accumulated impairment of $121.5 million for each period. We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our most recent annual review at June 29, 2020 (i.e. the first day of our fourth quarter in fiscal 2020) 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. All of our reporting units had estimated fair values that exceeded their carrying values by more than 80%, with the exception of our former Asia/Pacific ("ASP") reporting unit, which was in our CIG reportable segment. Our former ASP reporting unit had an estimated fair value that exceeded its carrying value by less than 20%. We also 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. Although we believe that our estimates of fair value for these reporting units are reasonable, if financial performance for these reporting units falls significantly below our expectations or market prices for similar business decline, the goodwill for these reporting units could become impaired. On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending June 30, 2020. This prompted a strategic review of our former ASP reporting unit. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for our former ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020. We also performed an interim goodwill impairment review of our former ASP reporting unit in September 2020 and recorded a $15.8 million goodwill impairment charge. As a result of the impairment charge, the estimated fair value of our former ASP reporting unit equaled its carrying value of $144.9 million, including $95.5 million of goodwill, at September 27, 2020. On September 28, 2020 (the first day of our fiscal 2021), we merged our former ASP reporting unit into our Client Account Management reporting unit. The following table presents the gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in “Intangible assets, net” on the consolidated balance sheets:
| June 27, 2021 |  | September 27, 2020
| Weighted- Average Remaining Life (in Years) |  | Gross Amount |  | Accumulated Amortization |  | Gross Amount |  | Accumulated Amortization
| ($ in thousands)
Client relations | 2.5 |  | $ | 48,444 |  |  | $ | (42,587) |  |  | $ | 60,775 |  |  | $ | (53,392) |
Backlog | 0.7 |  | 32,292 |  |  | (30,027) |  |  | 37,682 |  |  | (32,761) |
Trade names | 1.6 |  | 7,162 |  |  | (6,124) |  |  | 7,964 |  |  | (6,325) |
Total |  |  | $ | 87,898 |  |  | $ | (78,738) |  |  | $ | 106,421 |  |  | $ | (92,478) |
Amortization expense for the three and nine months ended June 27, 2021 was $2.2 million and $7.8 million, respectively, compared to $2.6 million and $9.0 million for the prior-year periods. Estimated amortization expense for the remainder of fiscal 2021 and succeeding years is as follows:
| Amount
| (in thousands)
2021 | $ | 2,093 |
2022 | 4,072 |
2023 | 2,138 |
2024 | 754 |
2025 | 103 |
Total | $ | 9,160 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration