Goodwill and Intangible Assets

3 Months Ended

Jan. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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


	GSG		CIG		Total
	(in thousands)
Balance at October 3, 2021	$	538,433	$	570,145	$	1,108,578
Goodwill reallocation	(51,497)		51,497		—
Acquisition activity	14,671		—		14,671

Translation and adjustments	44		(233)		(189)
Balance at January 2, 2022	$	501,651	$	621,409	$	1,123,060

Our goodwill balances reflect the goodwill reallocation related to the creation of our new HPB division on the first day of fiscal 2022, which included a transfer of some related operations in our GSG reportable segment to our CIG reportable segment. The foreign currency translation adjustments resulted from our foreign subsidiaries with functional currencies that are different than our reporting currency. These amounts are presented net of reductions from historical impairment adjustments. The gross amounts of goodwill for GSG were $519.4 million and $556.1 million at January 2, 2022 and October 3, 2021, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $742.9 million and $691.6 million at January 2, 2022 and October 3, 2021, respectively, excluding accumulated impairment of $121.5 million for each period.

We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our most recent annual review at June 28, 2021 (i.e. the first day of our fourth quarter in fiscal 2021) 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. As of June 28, 2021, and after the reallocation of goodwill on the first day of fiscal 2022, we had no reporting units that had estimated fair values that exceeded their carrying values by less than 150%.

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.

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:


	Period Ended
	January 2, 2022							October 3, 2021
	Weighted- Average Remaining Life (in Years)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
	($ in thousands)
Client relations	6.4	$	43,646	$	(18,723)	$	24,923	$	69,455	$	(43,984)	$	25,471
Backlog	1.2	32,113		(28,573)		3,540		34,577		(30,670)		3,907
Technology and trade names	4.3	14,936		(6,864)		8,072		14,939		(6,327)		8,612
Total		$	90,695	$	(54,160)	$	36,535	$	118,971	$	(80,981)	$	37,990

Amortization expense for the three months ended January 2, 2022 was $2.7 million, compared to $3.4 million for the prior-year periods. Estimated amortization expense for the remainder of fiscal 2022 and succeeding years is as follows:


	Amount
	(in thousands)
2022	$	7,733
2023	7,859
2024	5,193
2025	4,359
2026	3,963
Beyond	7,428
Total	$	36,535