GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jul. 03, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the activity of goodwill by reportable operating segment:


(In millions)	Oncology Systems		Other		Total⁽¹⁾
Balance at September 27, 2019	$	447.9	$	164.3	$	612.2
Business combination	2.6		—		2.6

Measurement period adjustments to business combinations in prior year	(5.6)		3.8		(1.8)
Foreign currency translation adjustments	(4.3)		(1.3)		(5.6)
Balance at July 3, 2020	$	440.6	$	166.8	$	607.4

⁽¹⁾The total carrying value of goodwill at both July 3, 2020, and September 27, 2019 is net of $50.5 million of accumulated impairment charges related to the Company recording an impairment charge for the full value of the Proton Solutions operating segment goodwill in fiscal year 2019.

Due to certain indicators identified related to the Company's Interventional Solutions reporting unit in the second quarter of fiscal year 2020, including a significant decrease in near term revenue projections due to COVID-19, the Company identified a triggering event and performed an interim impairment test on its $164.3 million of goodwill in its Interventional Solutions reporting unit, within the Other reportable operating segment. The fair value of the Interventional Solutions’ reporting unit was in excess of its carrying value by approximately $20 million, or 7%. Management believes the methodology and assumptions used to calculate the fair value to be reasonable as of July 3, 2020. However, the Interventional Solutions reporting unit could be at risk for a future goodwill impairment if there are adjustments to certain assumptions used in the fair value calculation, including revenue growth rates, operating margins, and weighted-average cost of capital and/or working capital requirements. Given the uncertain impact of COVID-19 and/or other market factors on the Company's business, its cash flow projections for this business could decrease in the future, which could lead to an impairment of goodwill.

Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates, operating margins, working capital requirements, weighted-average cost of capital, future economic and market conditions, estimation of the long-term rate of growth for the Company's business and determination of appropriate market comparables. Management bases the fair value estimates on assumptions it believes to be reasonable but that are inherently uncertain. Actual future results related to assumed variables could differ from these estimates. In addition, management makes certain judgments and assumptions in allocating assets and liabilities to determine the carrying values for each reporting unit.

The following table summarizes the gross carrying amount and accumulated amortization of the Company's intangible assets:


	July 3, 2020										September 27, 2019
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Technologies and patents	$	226.2	$	(104.2)	$	122.0	$	226.4	$	(85.9)	$	140.5
Customer contracts, supplier relationships, and partner relationships	117.8		(32.5)		85.3		121.1		(25.7)		95.4
Trade names	52.2		(6.0)		46.2		55.1		(3.0)		52.1
Other	6.1		(6.1)		—		6.1		(6.1)		—
Total intangible with finite lives	402.3		(148.8)		253.5		408.7		(120.7)		288.0
In-process research and development with indefinite lives	12.2		—		12.2		12.7		—		12.7
Total intangible assets	$	414.5	$	(148.8)	$	265.7	$	421.4	$	(120.7)	$	300.7

Amortization expense for intangible assets was $9.0 million and $6.0 million during the three months ended July 3, 2020, and June 28, 2019, respectively, and $28.6 million and $17.4 million during the nine months ended July 3, 2020, and June 28, 2019, respectively.

As of July 3, 2020, the Company estimates its remaining amortization expense for intangible assets with finite lives will be as follows (in millions):


Fiscal Years:	Remaining Amortization Expense
Remainder of 2020	$	9.1
2021	35.3
2022	33.7
2023	32.5
2024	25.4
Thereafter	117.5
Total remaining amortization for intangible assets	$	253.5