Goodwill and Intangible Assets

12 Months Ended

Sep. 27, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The following table summarizes the changes in the carrying value of goodwill:

	GSG		CIG		Total
	(in thousands)
Balance at September 30, 2018	$	389,741	$	409,079	$	798,820
Acquisitions	53,098		93,601		146,699
Impairment	—		(7,755)		(7,755)
Translation and other	(1,037)		(11,907)		(12,944)
Balance at September 29, 2019	441,802		483,018		924,820
Acquisitions	74,882		5,294		80,176
Impairment	—		(15,800)		(15,800)
Translation and other	(369)		4,671		4,302
Balance at September 27, 2020	$	516,315	$	477,183	$	993,498

The goodwill additions related to our fiscal 2020 acquisitions of SEG and BWF and adjustments of the final valuations for our fiscal 2019 acquisitions. The purchase price allocations for the SEG and BWF acquisitions are preliminary and subject to adjustment based upon the final determinations of the net assets acquired and information to perform the final valuations. Our goodwill was also impacted by foreign currency translation related to the goodwill balances of our foreign subsidiaries with functional currencies that are different than our reporting currency.

We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last review at June 29, 2020 (i.e. the first day of our fourth quarter in fiscal 2020), indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill. All of our reporting units had estimated fair values that exceeded their carrying values by more than 80%, with the exception of our Asia/Pacific ("ASP") reporting unit, which is in our CIG reportable segment. Our ASP reporting unit had an estimated fair value that exceeded its carrying value by less than 20%.

We also regularly evaluate whether events and circumstances have occurred that may indicate a potential change in the recoverability of goodwill. We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, such as a deterioration in general economic conditions; an increase in the competitive environment; a change in management, key personnel, strategy or customers; negative or declining cash flows; or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. Although we believe that our estimates of fair value for these reporting units are reasonable, if financial performance for these reporting units falls significantly below our expectations or market prices for similar business decline, the goodwill for these reporting units could become impaired.

On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending in June 2020. This prompted a strategic review of our ASP reporting unit. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for the ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020. We also performed an interim goodwill impairment review of our ASP reporting unit in September 2020 and recorded a $15.8 million goodwill impairment charge. The impaired goodwill related to our acquisitions of Coffey and NDY. As a result of the impairment charge, the estimated fair value of our ASP reporting unit equaled its carrying value of $144.9 million, including $95.5 million of goodwill, at September 27, 2020.

During the fourth quarter of fiscal 2019, we performed an interim goodwill impairment review of our RFS reporting unit and recorded a $7.8 million goodwill impairment charge. As a result of the impairment charge, the estimated fair value of the RFS reporting unit equaled its carrying value of $61 million at September 29, 2019, including the remaining $48.8 million of goodwill.

The gross amounts of goodwill for GSG were $534.0 million and $459.5 million at fiscal 2020 and 2019 year-ends, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $598.7 million and $588.7 million at fiscal 2020 and 2019 year-ends, respectively, excluding accumulated impairment of $121.5 million and $105.7 million, respectively.

The following table presents the gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in "Intangible assets, net" on the consolidated balance sheets:

	Fiscal Year Ended
	September 27, 2020					September 29, 2019
	Weighted- Average Remaining Life (in years)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
	($ in thousands)
Client relations	2.9	$	60,775	$	(53,392)	$	56,779	$	(50,455)
Backlog	0.7	37,682		(32,761)		32,229		(24,968)
Technology and trade names	1.8	7,964		(6,325)		7,714		(4,859)
Total		$	106,421	$	(92,478)	$	96,722	$	(80,282)

Foreign currency translation adjustments reduced net identifiable intangible assets by $0.4 million and $0.3 million in fiscal 2020 and 2019, respectively. Amortization expense for the identifiable intangible assets for fiscal 2020, 2019 and 2018 was $11.6 million, $11.6 million and $18.2 million, respectively.

Estimated amortization expense for the succeeding four fiscal years is as follows:

	Amount
	(in thousands)
2021	$	8,786
2022	2,652
2023	1,915
2024	590
Total	$	13,943