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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 27, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

6. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company’s goodwill primarily relates to the Energy segment and the acquisitions within this segment of E3, Inc., Lime Energy, NAM, Integral Analytics and Abacus Resource Management Company (“Abacus”) and substantially all of the assets of Enica, Onsite Energy, The Weidt Group, Genesys and 360 Energy Engineers, LLC (“360 Energy”). The remaining goodwill relates to the Engineering and Consulting reporting segment and the acquisition within this segment of Economists LLC.

The changes in the carrying value of goodwill by reporting unit were as follows:


	December 29,		Additional		Additions /		December 27,
	2023		Purchase Cost		Adjustments		2024
	(in thousands)
Reporting Unit:
Energy	$	129,375	$	9,847	$	—	$	139,222
Engineering and Consulting		1,769		—		—		1,769
	$	131,144	$	9,847	$	—	$	140,991

	December 30,		Additional		Additions /		December 29,
	2022		Purchase Cost		Adjustments		2023
	(in thousands)
Reporting Unit:
Energy	$	129,375	$	—	$	—	$	129,375
Engineering and Consulting		749		1,020		—		1,769
	$	130,124	$	1,020	$	—	$	131,144

The Company tests its goodwill at least annually for possible impairment. The Company completes its annual testing of goodwill as of the last day of the first month of its fourth fiscal quarter each year to determine whether there is impairment. In addition to the Company’s annual test, it regularly evaluates whether events and circumstances have occurred that may indicate a potential impairment of goodwill.

No impairment was recorded in any year during the three-year period ended December 27, 2024.

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives, included in other intangible assets, net in the accompanying consolidated balance sheets, were as follows:


	December 27, 2024				December 29, 2023
	Gross		Accumulated		Gross		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
	(in thousands)								(in years)
Finite:
Backlog	$	8,882	$	8,350	$	8,306	$	8,095	1.0
Tradename		16,123		13,196		15,936		12,695	2.5	-	6.0
Non-compete agreements		1,613		1,488		1,613		1,440	4.0	-	5.0
Developed technology		15,810		15,286		15,810		14,521	8.0
Customer relationships		62,041		36,735		58,149		31,107	5.0	-	12.0
Total intangible assets	$	104,469	$	75,055	$	99,814	$	67,858

At the time of acquisition, the Company estimates the fair value of the acquired identifiable intangible assets based upon the facts and circumstances related to the particular intangible asset. Inherent in such estimates are judgments and estimates of future revenue, profitability, cash flows and appropriate discount rates for any present value calculations. The Company preliminarily estimates the value of the acquired identifiable intangible assets and then finalizes the

estimated fair values during the purchase allocation period, which does not extend beyond 12 months from the date of acquisition.

The Company’s amortization expense for acquired identifiable intangible assets with finite useful lives was $7.2 million, $10.1 million, and $11.2 million for the fiscal years 2024, 2023 and 2022, respectively.

Estimated amortization expense for acquired identifiable intangible assets for fiscal year 2024 and the succeeding years is as follows:


		Future Intangible Asset
		Amortization expense
		(in thousands)
Fiscal year:
2025	$	7,069
2026		6,126
2027		5,865
2028		5,254
2029		1,530
Thereafter		3,570
	$	29,414