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Goodwill And Intangible Assets | 9 Months Ended
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Jun. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill And Intangible Assets | Goodwill and Intangible Assets Effective October 1, 2023, we made a change to our reporting structure to separate our former Aircraft Controls operating segment into two operating segments, Military Aircraft and Commercial Aircraft, which also represent reporting units for purposes of assessing goodwill. We performed an impairment test consistent with the rules set forth under ASC 350, “Intangibles—Goodwill and Other,” by performing a quantitative analysis on the former reporting unit. Following this test, we reassigned the goodwill from the former Aircraft Controls reporting unit to its new reporting units using a relative fair value allocation approach. We then performed quantitative goodwill impairment tests on each of the new reporting units. Quantitative testing requires a comparison of the fair value of a reporting unit to its carrying value. We principally use the discounted cash flow method to estimate the fair value of a reporting unit. The discounted cash flow method incorporates various assumptions, the most significant being projected cash flows (inclusive of projected revenue growth rates and operating margins), the terminal growth rate and the discount rate. Management projects revenue growth rates, operating margins and cash flows based on each reporting unit's current business, expected developments and operational strategies typically over a five-year period. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and an impairment loss must be measured. The results of our quantitative assessments showed the fair value of the two new reporting units, Military Aircraft and Commercial Aircraft, exceeded their carrying value; and therefore, goodwill was not impaired. The changes in the carrying amount of goodwill are as follows:
| Space and Defense | Military Aircraft | Commercial Aircraft | Industrial | Total
Balance at September 30, 2023 | $ | 259,475 |  | $ | 111,276 |  | $ | 92,612 |  | $ | 357,938 |  | $ | 821,301 |
Acquisition | — |  | 2,739 |  | — |  | — |  | 2,739 |
Foreign currency translation | 29 |  | 1,858 |  | — |  | 1,392 |  | 3,279 |
Balance at June 29, 2024 | $ | 259,504 |  | $ | 115,873 |  | $ | 92,612 |  | $ | 359,330 |  | $ | 827,319 |
Goodwill in our Space and Defense segment is net of a $4,800 accumulated impairment loss at June 29, 2024. Goodwill in our Medical Devices reporting unit, included in our Industrial segment, is net of a $38,200 accumulated impairment loss at June 29, 2024. The components of intangible assets are as follows:
|  |  |  | June 29, 2024 |  | September 30, 2023
|  | Weighted- Average Life (years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Customer-related |  | 11 |  | $ | 130,286 |  |  | $ | (94,104) |  |  | $ | 133,269 |  |  | $ | (93,648) |
Technology-related |  | 9 |  | 67,374 |  |  | (55,006) |  |  | 69,242 |  |  | (56,106) |
Program-related |  | 23 |  | 38,363 |  |  | (23,485) |  |  | 37,465 |  |  | (21,672) |
Marketing-related |  | 8 |  | 21,896 |  |  | (19,104) |  |  | 21,890 |  |  | (18,995) |
Other |  | 10 |  | 1,808 |  |  | (1,606) |  |  | 1,773 |  |  | (1,581) |
Intangible assets |  | 12 |  | $ | 259,727 |  |  | $ | (193,305) |  |  | $ | 263,639 |  |  | $ | (192,002) |
All acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks and trade names. During the three months ended March 30, 2024, we initiated restructuring actions in conjunction with exiting a product line within our Military Aircraft segment, which included the write off of intangible assets. We have recorded this charge based on the expected cash flows over the remaining life of the assets and is included in Restructuring in the Consolidated Condensed Statement of Earnings. See Note 14 – Restructuring, for additional disclosures. Amortization of acquired intangible assets is as follows:
| Three Months Ended |  | Nine Months Ended
| June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Acquired intangible asset amortization | $ | 2,384 |  |  | $ | 2,859 |  |  | $ | 7,672 |  |  | $ | 8,711 |
Based on acquired intangible assets recorded at June 29, 2024, amortization is estimated to be approximately:
| 2024 | 2025 | 2026 | 2027 | 2028
Estimated future amortization of acquired intangible assets | $ | 10,100 |  | $ | 9,600 |  | $ | 9,500 |  | $ | 8,200 |  | $ | 7,500 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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