GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Oct. 03, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Intangible assets classified as goodwill are not amortized. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of business outlook process. The Company performed its annual assessment in the fourth quarter of fiscal 2020 and concluded that no impairment charge was required. During the fiscal year ended October 3, 2020, the Company reviewed qualitative factors to ascertain if a "triggering" event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred.

While we have concluded that a triggering event did not occur during the fiscal year ended October 3, 2020, a prolonged COVID-19 pandemic could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the reporting units that could be significant enough to trigger an impairment. Net sales and earnings growth rates could be negatively impacted by reductions or changes in demand for our products.

The discount rate utilized in our valuation model could also be impacted by changes in the underlying interest rates and risk premiums included in the determination of the cost of capital.

The following table summarizes the Company's recorded goodwill by reportable segments as of October 3, 2020 and September 28, 2019:


(in thousands)	Capital Equipment		APS



Balance at September 28, 2019	$	29,480	$	26,211
Other	794		210
Balance at October 3, 2020	$	30,274	$	26,421

Intangible Assets

Intangible assets with determinable lives are amortized over their estimated useful lives. The Company's intangible assets consist primarily of developed technology, customer relationships and trade and brand names.

The following table reflects net intangible assets as of October 3, 2020 and September 28, 2019:


	As of				Average estimated
(dollar amounts in thousands)	October 3, 2020		September 28, 2019		useful lives (in years)
Developed technology	$	91,044	$	87,209	7.0 to 15.0

Accumulated amortization	(54,293)		(48,718)
Net developed technology	$	36,751	$	38,491

Customer relationships	$	36,307	$	35,180	5.0 to 6.0

Accumulated amortization	(35,587)		(31,862)
Net customer relationships	$	720	$	3,318

Trade and brand names	$	7,404	$	7,219	7.0 to 8.0

Accumulated amortization	(6,903)		(6,377)
Net trade and brand names	$	501	$	842

Other intangible assets	$	2,500	$	2,500	1.9
Accumulated amortization	(2,500)		(2,500)
Net wedge bonder other intangible assets	$	—	$	—

Net intangible assets	$	37,972	$	42,651

The following table reflects estimated annual amortization expense related to intangible assets as of October 3, 2020:


	As of
(in thousands)	October 3, 2020
Fiscal 2021	$	5,582
Fiscal 2022	4,574
Fiscal 2023	4,474
Fiscal 2024	4,474
Fiscal 2025	4,474
Fiscal 2026 and thereafter	14,394
Total amortization expense	$	37,972