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GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 28, 2024

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 2024 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 28, 2024, 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 28, 2024, the persistent macroeconomic headwinds could, in the future, require changes to assumptions utilized in the determination of the estimated fair values of the reporting units which could result in future goodwill impairment charges. 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 changes in 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 28, 2024 and September 28, 2024:

(in thousands)						Wedge Bonding Equipment						APS						All Others						Total
Balance at September 28, 2024(1)						$	18,280					$	26,268					45,200						$	89,748
Other						—						(198)						(1,139)						$	(1,337)
Balance at December 28, 2024						$	18,280					$	26,070					44,061						$	88,411

(1) Cumulative goodwill impairment pertaining to the “All Others” category as of September 28, 2024 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 28, 2024 and September 28, 2024: 

									As of December 28, 2024																		As of September 28, 2024
(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			$	80,364					$	(60,801)					$	19,563					$	83,401					$	(61,575)					$	21,826
Customer relationships						5.0 to 8.0			$	36,554					$	(34,912)					$	1,642					$	37,625					$	(35,916)					$	1,709
Trade and brand name						7.0 to 8.0			$	7,095					$	(7,095)					$	—					$	7,272					$	(7,272)					$	—
Other intangible assets						1.0 to 8.0			$	5,617					$	(4,479)					$	1,138					$	5,617					$	(4,372)					$	1,245
In-process research and development						N.A			$	459					$	—					$	459					$	459					$	—					$	459
									$	130,089					$	(107,287)					$	22,802					$	134,374					$	(109,135)					$	25,239

The following table reflects estimated annual amortization expense related to intangible assets as of December 28, 2024:

			As of
(in thousands)			December 28, 2024
Remaining fiscal 2025			$	3,705
Fiscal 2026			4,940
Fiscal 2027			4,665
Fiscal 2028			4,244
Fiscal 2029			3,255
Thereafter			1,993
Total amortization expense			$	22,802

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- References

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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

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