Goodwill and Intangible Assets

12 Months Ended

Sep. 27, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The table below presents changes in the carrying amount of goodwill for the periods presented:


(Amounts in millions)	Total
Balance as of September 30, 2022	$	3,002
Acquisition of PAE (1)	75
Goodwill impairment charges	(186)

Balance as of September 29, 2023	2,891

Acquisition of CMS	2,665
Balance as of September 27, 2024	$	5,556

(1) Represents changes to goodwill resulting from measurement period adjustments recorded in fiscal year 2023 associated with the acquisition of PAE Incorporated (“PAE”) purchase price allocation.

During the first quarter of fiscal year 2023, we amended our organizational structure and performed an interim goodwill impairment test. Our interim quantitative goodwill impairment test concluded that the carrying value of one reporting unit exceeded its fair value. As a result, a non-cash impairment charge of $186 million was recognized during the year ended September 29, 2023. Had the information included in the quantitative test been known at the date of our fiscal year 2022 annual impairment test, there would have been no material change in the measurement of the impairment charge.

In the fourth quarter of fiscal year 2024, we performed our annual goodwill impairment test and concluded no impairment charges were necessary.

Accumulated goodwill impairment was $294 million as of both September 27, 2024 and September 29, 2023.

Intangible Assets

Intangible assets, net consisted of the following:


	As of September 27, 2024
(Amounts in millions, except years)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net
Backlog	2.4	$	931	$	(552)	$	379
Customer relationship intangible assets	12.9	2,781		(550)		2,231
Capitalized software	4.8	23		(10)		13
Total intangible assets, net		$	3,735	$	(1,112)	$	2,623


	As of September 29, 2023
(Amounts in millions, except years)	Weighted Average Useful Life (Years)	Gross Carrying Value		Accumulated Amortization		Net
Backlog	6.7	$	702	$	(547)	$	155
Customer relationship intangible assets	11.1	1,191		(372)		819
Capitalized software	5.3	21		(7)		14
Total intangible assets, net		$	1,914	$	(926)	$	988

Amortization expense was $228 million, $298 million and $272 million for the years ended September 27, 2024, September 29, 2023 and September 30, 2022, respectively.

Future amortization expense is expected to be as follows:


Year Ending September 30,	(Amounts in millions)
2025	$	481
2026	417
2027	345
2028	270
2029	225
Thereafter	885
Total	$	2,623