Goodwill and Intangible Assets

12 Months Ended

Sep. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The changes to the carrying amount of goodwill are as follows (in millions):



	As of
	September 28, 2018		September 29, 2017
Goodwill at beginning of the period	$	883.0	$	873.3
Goodwill recognized through business combinations (Note 3)	306.8		9.7
Goodwill impairment	—		—
Goodwill at the end of the period	$	1,189.8	$	883.0

The Company performed an impairment test of its goodwill as of the first day of the fourth fiscal quarter in accordance with its regularly scheduled testing. The results of this test indicated that the Company’s goodwill was not impaired. There were no other indicators of impairment noted during the fiscal year ended September 28, 2018.

Intangible assets consist of the following (in millions):



		As of							As of
	Weighted average amortization period (years)	September 28, 2018							September 29, 2017
	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Customer relationships	3.4	$	31.7	$	(13.2	)	$	18.5	$	29.7	$	(14.6	)	$	15.1
Developed technology and other	5.3	89.9		(23.5		)	66.4		59.9		(20.6		)	39.3
Trademarks	3.0	1.6		(0.8		)	0.8		1.6		(0.3		)	1.3
Capitalized software	3.0	18.0		(6.0		)	12.0		12.1		—			12.1
IPR&D		46.0		—			46.0		$	—	—			—
Total intangible assets		$	187.2	$	(43.5	)	$	143.7	$	103.3	$	(35.5	)	$	67.8

Fully amortized intangible assets have been eliminated from both the gross and accumulated amortization amounts. The increase in the gross amount of intangible assets is primarily related to the business combination that closed during the fourth quarter of fiscal 2018. For further information regarding the acquired intangibles see Note 3, Business Combinations, in these Notes to the Consolidated Financial Statements.

Annual amortization expense for the next five fiscal years related to intangible assets is expected to be as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter
Amortization expense, cost of goods sold	$	24.8	$	22.5	$	0.1	$	0.1	$	0.1	$	1.9
Amortization expense, operating expense	22.6		11.8		9.0		1.0		1.0		2.8
Total amortization expense	$	47.4	$	34.3	$	9.1	$	1.1	$	1.1	$	4.7

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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