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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the Company’s goodwill for the fiscal years ended September 30, 2023 and 2022:
Balance as of October 1, 2021 | $ | 51,927 |
Acquisitions - DSA 1 | 39,531 |
Acquisitions - RMS 2 | 302,346 |
Impairment - RMS | (236,005) |
Foreign exchange impact - RMS | 26 |
Balance as of September 30, 2022 3 | $ | 157,825 |
Acquisitions - DSA 1 | 2,828 |
Impairment - RMS | (66,367) |
Balance as of September 30, 2023 3 | $ | 94,286 |
1 Goodwill for DSA acquisitions relates to the acquisitions in fiscal 2022 and measurement period adjustments during fiscal 2023 related to the fiscal 2022 acquisitions, as disclosed in Note 3 - Business Combinations 2 Goodwill for RMS acquisitions relates to the fiscal 2022 acquisitions, as disclosed in Note 3 - Business Combinations. 3 The accumulated impairment loss for the RMS segment was $302,220 at September 30, 2023 and $235,853 at September 30, 2022.. Fiscal Year 2023 The increase in goodwill during fiscal year 2023 related primarily to measurement period adjustments in the DSA segment from the acquisition of Protypia, partially offset by goodwill impairment related to the RMS reporting unit (which is reported within the RMS segment). On November 16, 2022, the Company became aware that the U.S. Attorney’s Office for the Southern District of Florida (“USAO-SDFL”) had criminally charged employees of the principal supplier of non-human primates (“NHPs”) to the Company, along with two Cambodian government officials, with conspiring to illegally import NHPs into the U.S. from December 2017 through January 2022 and in connection with seven specific imports between July 2018 and December 2021 (the “November 16, 2022 event”). During December 2022, the Company determined that as a result of the November 16, 2022 event, which led to the Company’s decision to refrain from selling or delivering any of its Cambodian NHPs held in the U.S. at that time, the uncertainty related to the Company’s ability to import NHPs from Cambodia and the decrease in its stock price, the carrying value of goodwill as of December 31, 2022, was required to be quantitatively evaluated. The carrying value of the Company’s goodwill by reporting unit was determined utilizing the income approach. Based on the Company’s quantitative goodwill impairment test, the fair value of the RMS reporting unit was less than the RMS reporting unit’s carrying value. As a result, a goodwill impairment loss of $66,367 was recorded within the RMS segment. Fiscal Year 2022 The increase in goodwill during fiscal year 2022 primarily related to the acquisitions of Plato, ILS, Histion and Protypia in the DSA reporting unit and Envigo, RSI and OBRC in the RMS reporting unit, offset by goodwill impairment related to the RMS reporting unit. See Note 3 - Business Combinations for further discussion of these business combinations. As a part of the annual goodwill assessment, the Company first assessed qualitative factors to determine whether it was necessary to perform the quantitative impairment test. As a result of the qualitative analysis, the Company determined that as a result of the sustained reduction in our stock price during the fiscal year ended September 30, 2022, the carrying value of our goodwill as of fiscal year end must be quantitatively evaluated. The carrying value of the Company’s goodwill by reporting unit was determined utilizing the income approach. Based on the Company’s quantitative goodwill impairment test, which was performed in the fourth quarter of fiscal year 2022, the fair value of the RMS reporting unit was less than the RMS reporting unit’s carrying value. As a result, goodwill impairment losses of $236,005 were recorded. Intangible Assets The following table displays intangible assets, net by major class:
| September 30, 2023
| Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net
Customer relationships | $ | 316,820 |  |  | $ | (54,711) |  |  | $ | 262,109 |
Intellectual property | 56,337 |  |  | (12,234) |  |  | 44,103 |
Other | 4,837 |  |  | (2,621) |  |  | 2,216 |
| $ | 377,994 |  |  | $ | (69,566) |  |  | $ | 308,428 |
| September 30, 2022
| Carrying Amount, Gross |  | Accumulated Amortization |  | Carrying Amount, Net
Customer relationships | $ | 318,896 |  |  | $ | (26,990) |  |  | $ | 291,906 |
Intellectual property | 56,997 |  |  | (5,767) |  |  | 51,230 |
Other | 4,806 |  |  | (2,056) |  |  | 2,750 |
| $ | 380,699 |  |  | $ | (34,813) |  |  | $ | 345,886 |
The decrease in intangible assets, net during fiscal year 2023 related primarily to the amortization of all intangible assets, partially offset by foreign exchange rate impact. The increase in intangible assets, net during fiscal year 2022 related primarily to the acquisitions of Envigo, ILS and OBRC, partially offset by the amortization of all intangible assets. Amortization expense of definite-lived intangible assets for fiscal years ended 2023 and 2022 was $34,681 and $30,888, respectively. As of September 30, 2023, estimated amortization of intangible assets for each of the next five fiscal years and in the aggregate thereafter is expected to be as follows:
| RUL 1 (in years) |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | Thereafter |  | Totals
Customer relationships | 9.9 |  | $ | 27,774 |  |  | $ | 27,774 |  |  | $ | 27,712 |  |  | $ | 27,526 |  |  | $ | 27,393 |  |  | $ | 123,930 |  |  | $ | 262,109 |
Intellectual property | 6.9 |  | 6,446 |  |  | 6,446 |  |  | 6,446 |  |  | 6,446 |  |  | 6,446 |  |  | 11,873 |  |  | 44,103 |
Other | 6.4 |  | 534 |  |  | 524 |  |  | 367 |  |  | 124 |  |  | 109 |  |  | 558 |  |  | 2,216 |
Total | 9.4 |  | $ | 34,754 |  |  | $ | 34,744 |  |  | $ | 34,525 |  |  | $ | 34,096 |  |  | $ | 33,948 |  |  | $ | 136,361 |  |  | $ | 308,428 |
1RUL (in years) represents the weighted average remaining useful life

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