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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the changes in the carrying amount of the Company’s goodwill:
| RMS |  | DSA(1) |  | Manufacturing |  | Total
| (in thousands)
December 31, 2022 | $ | 497,710 |  |  | $ | 1,433,601 |  |  | $ | 918,592 |  |  | $ | 2,849,903 |
Acquisitions | — |  |  | 209,478 |  |  | — |  |  | 209,478 |
Foreign exchange | (236) |  |  | 19,355 |  |  | 16,545 |  |  | 35,664 |
December 30, 2023 | 497,474 |  |  | 1,662,434 |  |  | 935,137 |  |  | 3,095,045 |
Acquisitions | — |  |  | 17,675 |  |  | — |  |  | 17,675 |
Impairment | — |  |  | — |  |  | (215,000) |  |  | (215,000) |
Foreign exchange | (734) |  |  | (44,458) |  |  | (5,920) |  |  | (51,112) |
December 28, 2024 | $ | 496,740 |  |  | $ | 1,635,651 |  |  | $ | 714,217 |  |  | $ | 2,846,608 |
(1) DSA includes accumulated impairment losses of $1 billion, which were recognized in fiscal years 2008 and 2010.
The decrease in goodwill during fiscal year 2024 is primarily related to the $215.0 million impairment charge recognized in the Manufacturing reportable segment and foreign exchange impacts in the DSA reportable segment; partially offset by measurement period adjustments related to the acquisition of Noveprim in the DSA reportable segment. The increase in goodwill during fiscal year 2023 is related to the acquisitions of Noveprim and SAMDI in the DSA reportable segment. Annual Goodwill Impairment Assessment Goodwill is tested for impairment annually during the fourth quarter or more frequently if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of the Company's reporting units below their carrying amounts. Based on the Company’s quantitative goodwill impairment test, which was performed in the fourth quarter for each of the fiscal years 2024, 2023, and 2022, the fair value of each reporting unit exceeded the reporting unit’s book value and, therefore, goodwill was not impaired. 2024 Goodwill Impairment Results from Triggering Events During the third quarter of fiscal 2024, a triggering event was identified for the Discovery Services reporting unit (part of the DSA reportable segment). This resulted from a continuous decline in market conditions and operational challenges, ultimately resulting in a reduction of Discovery Services’ long range financial outlook. In response, management conducted a quantitative impairment test for goodwill to determine if the goodwill in the Discovery Services reporting unit was impaired. Upon completion of a quantitative impairment test, it was determined that the fair value of the reporting unit exceeded its carrying value as of the end of the third quarter of fiscal 2024, and no impairment was recognized. During the fourth quarter of fiscal 2024, as part of the annual impairment assessment, the Company revised the estimated cash flow inputs utilized in the quantitative impairment test which resulted in the fair value of the reporting unit exceeding its carrying value by approximately 16%, and no impairment was recognized as of December 28, 2024. The goodwill assigned to the Discovery Services reporting unit was $325 million as of December 28, 2024. While the Discovery Services reporting unit is not currently impaired, the Company will continue to closely monitor future performance and any potential impacts on the value of the reporting unit. In December 2024 subsequent to the annual goodwill impairment test, a triggering event was identified for the Biologics Solutions reporting unit (part of the Manufacturing reporting segment) which has goodwill assigned to it of $606 million. This resulted from a loss of key customers, ultimately resulting in a reduction in Biologics Solutions’ long range financial outlook. In response, management conducted a quantitative impairment test for goodwill to determine if the goodwill in the Biologics Solutions reporting unit was impaired. The fair value of the Biologics Solutions reporting unit was determined by using a weighted combination of a market-based approach and an income approach. Under the market-based approach, the Company utilized entity specific information about the reporting unit as well as publicly available industry information to determine key assumptions including earnings multiples and sales multiples. Under the income approach, fair value was determined based on the estimated future cash flows of the reporting unit which includes key assumptions for future revenue, long term growth rates, and operating income margins, discounted by an estimated weighted-average cost of capital. The Biologics Solutions reporting unit fair value measurement is classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs. Upon completion of the quantitative impairment test, it was determined that the fair value of the reporting unit did not exceed its carrying value. As a result, the Company recognized a goodwill impairment charge of $215.0 million within the accompanying consolidated statements of income. The Company will continue to closely monitor future performance and any potential impacts on the value of the reporting unit. Intangible Assets, Net The following table displays intangible assets, net by major class:
| December 28, 2024 |  | December 30, 2023
| Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
| (in thousands)
Client relationships | $ | 1,505,871 |  |  | $ | (823,903) |  |  | $ | 681,968 |  |  | $ | 1,528,780 |  |  | $ | (721,322) |  |  | $ | 807,458 |
Technology | 139,335 |  |  | (116,536) |  |  | 22,799 |  |  | 142,190 |  |  | (111,764) |  |  | 30,426 |
Trademarks and trade names | 11,827 |  |  | (5,630) |  |  | 6,197 |  |  | 11,878 |  |  | (4,568) |  |  | 7,310 |
Backlog | — |  |  | — |  |  | — |  |  | 3,100 |  |  | (2,177) |  |  | 923 |
Other | 39,819 |  |  | (27,383) |  |  | 12,436 |  |  | 43,611 |  |  | (25,677) |  |  | 17,934 |
Intangible assets | $ | 1,696,852 |  |  | $ | (973,452) |  |  | $ | 723,400 |  |  | $ | 1,729,559 |  |  | $ | (865,508) |  |  | $ | 864,051 |
During the fourth quarter ended December 28, 2024, a triggering event was identified for the Cell Therapy asset group within the Biologics Solutions business as there was a loss of key customers, resulting in a significant reduction in cash flows. The Company concluded that there were no impairments to the long-lived asset group, which includes client relationships. However the remaining useful life of the client relationships was reduced. As a result of the decrease in the remaining useful life, $9.4 million of accelerated amortization was recognized within the accompanying consolidated statements of income. The remaining value of these client relationships is $75.9 million and will be amortized over the remaining useful life of approximately 6 months in fiscal year 2025. The decrease in intangible assets, net during fiscal year 2024 related primarily to normal amortization over the useful lives and the accelerated amortization of certain client relationships in the Biologics Solutions reporting unit. Amortization expense of definite-lived intangible assets for fiscal years 2024, 2023 and 2022 was $138.5 million, $137.4 million and $146.6 million, respectively. As of December 28, 2024, estimated amortization expense for intangible assets for each of the next five fiscal years is expected to be as follows:
Fiscal Year |  | Amortization Expense
|  | (in thousands)
2025 |  | $ | 185,783 |
2026 |  | $ | 104,595 |
2027 |  | $ | 92,904 |
2028 |  | $ | 81,659 |
2029 |  | $ | 73,704 |

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