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GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended
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Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS Goodwill Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. 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 impairment test in the fourth quarter of fiscal 2021 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a non-cash impairment in the future. During the three and nine months ended July 2, 2022, 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 quarter ended July 2, 2022, a prolonged COVID-19 pandemic and macroeconomic headwinds 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 (refer to Note 14) as of July 2, 2022 and October 2, 2021:
(in thousands) |  | Capital Equipment |  | APS |  | Total
Balance at October 2, 2021 |  | $ | 46,561 |  |  | $ | 26,388 |  |  | $ | 72,949 |
Other |  | (2,849) |  |  | (313) |  |  | $ | (3,162) |
Balance at July 2, 2022 |  | $ | 43,712 |  |  | $ | 26,075 |  |  | $ | 69,787 |
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, in-process research and development, and trade and brand names. The following table reflects net intangible assets as of July 2, 2022 and October 2, 2021:
| As of |  | Average estimated |
(dollar amounts in thousands) | July 2, 2022 |  | October 2, 2021 |  | useful lives (in years) |
Developed technology(1) | $ | 92,573 |  |  | $ | 90,427 |  |  | 6.0 to 15.0 |
Accumulated amortization | (58,932) |  |  | (58,494) |  |  |  |
Net developed technology | $ | 33,641 |  |  | $ | 31,933 |  |  |  |
Customer relationships | $ | 34,421 |  |  | $ | 36,114 |  |  | 5.0 to 6.0 |
Accumulated amortization | (34,421) |  |  | (36,114) |  |  |  |
Net customer relationships | $ | — |  |  | $ | — |  |  |  |
In-process research and development(1) | $ | — |  |  | $ | 8,795 |  |  | N.A |
Accumulated amortization | — |  |  | — |  |  |  |
Net in-process research and development | $ | — |  |  | $ | 8,795 |  |  |  |
Trade and brand name | $ | 7,095 |  |  | $ | 7,374 |  |  | 7.0 to 8.0 |
Accumulated amortization | (7,095) |  |  | (7,275) |  |  |  |
Net trade and brand name | — |  |  | 99 |  |  |  |
Other intangible assets | $ | 4,700 |  |  | $ | 4,700 |  |  | 1.9 to 6.0 |
Accumulated amortization | (3,050) |  |  | (2,775) |  |  |  |
Net other intangible assets | $ | 1,650 |  |  | $ | 1,925 |  |  |  |
| $ | 35,291 |  |  | $ | 42,752 |  |  |  |
(1) As of July 2, 2022, $7.9 million of in-process research and development assets were transferred to developed technology (definite-lived intangible assets) as the research and development process was completed, and are being amortized over their weighted-average useful lives of 6 years. The following table reflects estimated annual amortization expense related to intangible assets as of July 2, 2022:
| As of
(in thousands) | July 2, 2022
Remaining fiscal 2022 | $ | 1,416 |
Fiscal 2023 | 5,665 |
Fiscal 2024 | 5,665 |
Fiscal 2025 | 5,665 |
Fiscal 2026 | 5,665 |
Thereafter | 11,215 |
Total amortization expense | $ | 35,291 |

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- 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
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