GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

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


	September 30, 2022		Acquisitions		Impairment		June 30, 2023
DSA	$	91,458	$	2,828	$	—	$	94,286
RMS	302,372		—		—		302,372
Gross Carrying Amount	393,830		2,828		—		396,658
Accumulated impairment loss - RMS	(236,005)		—		(66,367)		(302,372)
Goodwill	$	157,825	$	2,828	$	(66,367)	$	94,286

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 as of June 30, 2023 is attributed to the DSA segment. Further, certain measurement period adjustments related to the acquisitions of Histion and Protypia were identified during the nine months ended June 30, 2023, which are reflected as changes in goodwill due to acquisitions within the Company’s DSA reportable segment.

Intangible Assets, Net

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


	June 30, 2023
	Carrying Amount, Gross		Accumulated Amortization		Carrying Amount, Net
Customer relationships	$	317,272	$	(47,771)	$	269,501
Intellectual property	56,393		(10,667)		45,726
Non-compete agreements	2,410		(1,214)		1,196
Other	2,396		(1,266)		1,130
	$	378,471	$	(60,918)	$	317,553


	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
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 nine months ended June 30, 2023 related to measurement period adjustments to intangible assets for the Protypia acquisition, partially offset by amortization over the applicable useful lives and by the impact of foreign exchange rates.