Goodwill and Intangible Assets

12 Months Ended

Oct. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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


	GSG		CIG		Total

Balance at October 3, 2021	$	538,433	$	570,145	$	1,108,578
Goodwill reallocation	(51,497)		51,497		—
Acquisitions	42,365		26,318		68,683

Translation and other	(10,199)		(56,650)		(66,849)
Balance at October 2, 2022	519,102		591,310		1,110,412
Acquisitions	138,380		621,496		759,876

Translation and other	2,460		7,496		9,956
Balance at October 1, 2023	$	659,942	$	1,220,302	$	1,880,244

Our goodwill balances reflect the goodwill reallocation related to the creation of our new High Performance Buildings 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. The fiscal 2023 goodwill amounts are presented net of reductions from historical impairment adjustments and fiscal 2023 goodwill additions relate to our fiscal 2023 acquisitions. The purchase price allocations for our fiscal 2023 acquisitions are preliminary and subject to adjustment based upon the final determinations of the net assets acquired and information to perform the final valuations.

We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last review at July 3, 2023 (i.e., the first day of our fourth quarter in fiscal 2023) 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 July 3, 2023, and after the reallocation of goodwill on the first day of fiscal 2023, we had no reporting units that had estimated fair values that exceeded their carrying values by less than 45%.

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 gross amounts of goodwill for GSG were $677.6 million and $536.8 million at fiscal 2023 and 2022 year-ends, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $1,341.8 million and $712.8 million at fiscal 2023 and 2022 year-ends, respectively, excluding accumulated impairment of $121.5 million for each period.

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 ($ in thousands):


	Fiscal Year Ended
	October 1, 2023							October 2, 2022
	Weighted- Average Remaining Life (in years)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount


Client relations	9.4	$	169,217	$	(36,072)	$	133,145	$	41,676	$	(21,092)	$	20,584
Backlog	0.9	63,825		(47,802)		16,023		33,286		(29,990)		3,296
Trade names	2.4	37,411		(12,643)		24,768		12,711		(7,428)		5,283
Total		$	270,453	$	(96,517)	$	173,936	$	87,673	$	(58,510)	$	29,163

Amortization expense for the identifiable intangible assets for fiscal 2023, 2022 and 2021 was $41.2 million, $13.2 million and $11.5 million, respectively. Foreign currency translation adjustments reduced net identifiable intangible assets by $0.2 million and $5.3 million in fiscal 2023 and 2022, respectively.

Estimated amortization expense for the succeeding five fiscal years and beyond is as follows (in thousands):


	Amount

2024	$	42,180
2025	28,032
2026	19,922
2027	13,861
2028	13,352
Beyond	56,589
Total	$	173,936