XML 22 R12.htm IDEA: XBRL DOCUMENT

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 31, 2022

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following is a rollforward of the Company’s goodwill:


	September 30, 2022			Impairment	December 31, 2022
DSA	$	91,458	$	—	$	91,458
RMS		302,372		—		302,372
Gross Carrying Amount		393,830		—		393,830
Accumulated impairment loss - RMS		(236,005)		(66,367)		(302,372)
Goodwill	$	157,825	$	(66,367)	$	91,458

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., 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 DSA reporting unit exceeded the reporting unit’s carrying value and, therefore, goodwill was not impaired. However, 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. The remaining goodwill balance of $91,458 as of December 31, 2022 is attributed to the DSA segment.

Intangible Assets, Net

The following table displays intangible assets, net by major class:


	December 31, 2022
	Carrying		Accumulated		Carrying
	Amount, Gross		Amortization		Amount, Net
Customer relationships	$	320,203	$	(34,069)	$	286,134
Intellectual property		57,159		(7,445)		49,714
Non-compete agreements		2,410		(986)		1,424
Other		2,396		(1,212)		1,184
	$	382,168	$	(43,712)	$	338,456


	September 30, 2022
	Carrying		Accumulated		Carrying
	Amount, Gross		Amortization		Amount, Net
Customer relationships	$	318,896	$	(26,990)	$	291,906
Intellectual property		56,997		(5,767)		51,230
Non-compete agreements		2,410		(872)		1,538
Other		2,396		(1,184)		1,212
	$	380,699	$	(34,813)	$	345,886

The decrease in intangible assets, net during the three months ended December 31, 2022 related to amortization over the applicable useful lives, offset set by the impact of foreign exchange rates.