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GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
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Mar. 29, 2025
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. Under ASC 350, the Company is required to test its goodwill and other intangible assets for impairment annually or when a triggering event has occurred that would indicate it is more likely than not that the fair value of the reporting unit is less than the carrying value including goodwill and other intangible assets. During the three months ended March 29, 2025, the Company concluded that a triggering event had occurred in connection with one reporting unit within the APS reportable segment and one reporting unit within the "All Others" category. The triggering event occurred based on the approval of the strategic plan related to the intended cessation of the EA equipment business. In view of the intended cessation of the EA equipment business and the related reduction in revenue and future cash flow for the reporting units, the Company performed a qualitative assessment and determined that it is more likely than not that this will reduce the fair value of the impacted reporting units below their carrying amount. In accordance with the guidance under ASC 350, the Company’s impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the amount of goodwill assigned to the report unit. Accordingly, the Company performed a quantitative impairment test and estimated the fair value of each reporting unit to be less than its carrying value. The Company used a discounted cash flow model to determine the fair value of each reporting unit within the APS reportable segment and "All Others" category respectively, and as such they were classified as Level 3 assets in the fair value hierarchy. The cash flow projections used within the discounted cash flow models were prepared using the forecasted financial results of each reporting unit, which was based upon the underlying assumption that future revenue and cash flows will diminish once the intended cessation of business is completed. Please refer to Note 16: Cessation of Business for further information on the intended cessation of business. As a result, a goodwill impairment charge, which is a non-cash charge that represents the entire goodwill assigned to the respective reporting units, of $19.2 million within the APS reportable segment and "All Others" category has been recorded and reflected in the Company’s Consolidated Condensed Statements of Operations for the three and six months ended March 29, 2025. While we have concluded that a triggering event for other reporting units did not occur during the quarter ended March 29, 2025, 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 as of March 29, 2025 and September 28, 2024. Please refer to Note 16: Cessation of Business for further information on the intended cessation of business:
(in thousands) |  | Wedge Bonding Equipment |  | APS |  | All Others |  | Total
Balance at September 28, 2024(1) |  | $ | 18,280 |  |  | $ | 26,268 |  |  | 45,200 |  |  | $ | 89,748 |
Goodwill impairment |  | — |  |  | (2,850) |  |  | (16,348) |  |  | $ | (19,198) |
Other |  | — |  |  | (152) |  |  | (876) |  |  | $ | (1,028) |
Balance at March 29, 2025 |  | $ | 18,280 |  |  | $ | 23,266 |  |  | 27,976 |  |  | $ | 69,522 |
(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. In connection with the intended cessation of the EA equipment business, the Company recorded an impairment charge of $15.7 million on the developed technology reported within the APS reportable segment and “All Others” category for the quarter ended March 29, 2025. The impairment of intangible assets is a non-cash charge which has been reflected in the Company’s Consolidated Statements of Operations for the quarter ended March 29, 2025. The following table reflects net intangible assets as of March 29, 2025 and September 28, 2024:
|  |  | As of March 29, 2025 |  | 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 | $ | 37,461 |  |  | $ | (34,310) |  |  | $ | 3,151 |  |  | $ | 83,401 |  |  | $ | (61,575) |  |  | $ | 21,826 |
Customer relationships |  | 5.0 to 8.0 | $ | 21,430 |  |  | $ | (19,855) |  |  | $ | 1,575 |  |  | $ | 37,625 |  |  | $ | (35,916) |  |  | $ | 1,709 |
Trade and brand name |  | 7.0 to 8.0 | $ | 4,600 |  |  | $ | (4,600) |  |  | $ | — |  |  | $ | 7,272 |  |  | $ | (7,272) |  |  | $ | — |
Other intangible assets |  | 1.0 to 8.0 | $ | 5,618 |  |  | $ | (4,588) |  |  | $ | 1,030 |  |  | $ | 5,617 |  |  | $ | (4,372) |  |  | $ | 1,245 |
In-process research and development |  | N.A | $ | 459 |  |  | $ | — |  |  | $ | 459 |  |  | $ | 459 |  |  | $ | — |  |  | $ | 459 |
|  |  | $ | 69,568 |  |  | $ | (63,353) |  |  | $ | 6,215 |  |  | $ | 134,374 |  |  | $ | (109,135) |  |  | $ | 25,239 |
The following table reflects estimated annual amortization expense related to intangible assets as of March 29, 2025:
| As of
(in thousands) | March 29, 2025
Remaining fiscal 2025 | $ | 659 |
Fiscal 2026 | 1,288 |
Fiscal 2027 | 1,013 |
Fiscal 2028 | 922 |
Fiscal 2029 | 922 |
Thereafter | 1,411 |
Total amortization expense | $ | 6,215 |

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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 + Details
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