Capital Assets

9 Months Ended

Jun. 27, 2020

CAPITAL ASSETS

Property and Equipment

Property and equipment, net are as follows:



	June 27, 2020			September 28, 2019
Land and improvements	$	3,957		$	3,949
Buildings and improvements	72,927			64,140
Machinery and equipment	231,261			224,684
Assets held under capital leases ¹	—			2,796
Total property and equipment	308,145			295,569
Less: Accumulated depreciation	(207,985		)	(194,486		)
Total property and equipment, net	$	100,160		$	101,083


¹	Assets held under capital leases were reclassified from property and equipment, net to other long-term assets as part of the adoption of the new lease standard. See Note 5 for additional information regarding leases.

Goodwill

Changes to the carrying amount of goodwill are as follows:



	Test & Simulation		Sensors		Total
Balance, September 28, 2019	$	61,153	$	367,886	$	429,039
Acquisitions ²	35,794		32		35,826
Currency translation	1,093		20		1,113
Balance, June 27, 2020	$	98,040	$	367,938	$	465,978

² See Note 16 for additional information regarding acquisitions.

Intangible Assets

Intangible assets are as follows:



	June 27, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in Years)
Software development costs³	$	49,666	$	(16,233	)	$	33,433	5.7
Technology and patents	68,457		(19,121		)	49,336		14.9
Trademarks and trade names	28,923		(4,928		)	23,995		17.4
Customer lists	217,233		(44,527		)	172,706		15.6
Land-use rights	2,305		(1,152		)	1,153		25.7
Other	7,975		(3,197		)	4,778		1.9
Trade names	57,500		—			57,500		Indefinite
Total intangible assets	$	432,059	$	(89,158	)	$	342,901	14.1



	September 28, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in Years)
Software development costs³	$	39,546	$	(16,035	)	$	23,511	6.2
Technology and patents	63,015		(15,739		)	47,276		14.9
Trademarks and trade names	20,186		(3,808		)	16,378		18.4
Customer lists	192,488		(34,735		)	157,753		15.6
Land-use rights	2,303		(968		)	1,335		25.7
Other	3,606		(774		)	2,832		4.0
Trade names	57,500		—			57,500		Indefinite
Total intangible assets	$	378,644	$	(72,059	)	$	306,585	14.4


³	The gross carrying amount of software development costs as of June 27, 2020 and September 28, 2019 includes $31,971 and $21,840, respectively, of software not yet available for general release to the public.

Amortization expense recognized related to finite-lived intangible assets is as follows:



	Three Months Ended				Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Amortization expense	$	6,288	$	4,449	$	17,343	$	12,668

Assessing goodwill, indefinite-lived intangible and long-lived assets for impairment requires management to make assumptions and apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. Due to the uncertainty stemming from the COVID-19 pandemic, as described in Note 17, we performed a qualitative assessment over our goodwill and indefinite-lived intangible asset to determine whether it is more likely than not (a likelihood of more than 50%) that the fair value of a reporting unit and indefinite-lived intangible asset were less than their carrying value. We determined that it was more likely than not that the fair value exceeds the carrying amount for all of our reporting units and indefinite-lived intangible asset as of the end of the third quarter of fiscal year 2020. Therefore, a quantitative analysis was not necessary. In performing this assessment, we believe we have made reasonable accounting estimates based on the facts and circumstances that were available as of the reporting date considering the developing situation resulting from the COVID-19 pandemic. However, if actual results are not consistent with the estimates and assumptions used in the calculations, we may be exposed to future impairment losses that could be material.

Estimated future amortization expense related to finite-lived intangible assets is as follows:



	Amortization Expense
Remainder of 2020	$	6,366
2021	24,970
2022	24,557
2023	23,660
2024	23,291
2025	23,134
Thereafter	159,423

Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to fluctuations in foreign currency exchange rates, future acquisitions, impairments, changes in amortization periods or other factors.