GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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 2023 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 months ended December 30, 2023, 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 December 30, 2023, the persistent 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, where applicable, by reportable segments and the “All Others” category (refer to Note 14 for further information) as of December 30, 2023 and September 30, 2023:


(in thousands)	Wedge Bonding Equipment		APS		All Others	Total
Balance at September 30, 2023(1)	$	18,280	$	26,109	44,284	$	88,673


Other	—		125		718	$	843
Balance at December 30, 2023	$	18,280	$	26,234	45,002	$	89,516

(1) Cumulative goodwill impairment pertaining to the “All Others” category as of September 30, 2023 was $45.0 million.

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 December 30, 2023 and September 30, 2023:


		As of December 30, 2023						As of September 30, 2023
(dollar amounts in thousands)	Average estimated useful lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount

Developed technology	6.0 to 15.0	$	82,874	$	(57,961)	$	24,913	$	80,959	$	(55,877)	$	25,082
Customer relationships	5.0 to 8.0	$	37,439	$	(35,530)	$	1,909	$	36,764	$	(34,789)	$	1,975
Trade and brand name	7.0 to 8.0	$	7,241	$	(7,241)	$	—	$	7,130	$	(7,130)	$	—
Other intangible assets	1.0 to 8.0	$	5,618	$	(3,983)	$	1,635	$	5,617	$	(3,776)	$	1,841
In-process research and development	N.A	$	459	$	—	$	459	$	459	$	—	$	459
		$	133,631	$	(104,715)	$	28,916	$	130,929	$	(101,572)	$	29,357

The following table reflects estimated annual amortization expense related to intangible assets as of December 30, 2023:


	As of
(in thousands)	December 30, 2023
Remaining fiscal 2024	$	3,916
Fiscal 2025	5,153
Fiscal 2026	5,153
Fiscal 2027	4,878
Fiscal 2028	4,438
Thereafter	5,378
Total amortization expense	$	28,916