Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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


	GSG		CIG		Total

Balance at October 1, 2023	$	659,942	$	1,220,302	$	1,880,244
Acquisition activity	84,865		—		84,865

Translation and other adjustments	2,282		24,719		27,001
Balance at June 30, 2024	$	747,089	$	1,245,021	$	1,992,110

The goodwill addition in GSG resulted from the purchase price allocations for our fiscal 2024 acquisitions which are preliminary and subject to adjustment based upon the final determinations of the net assets acquired and information to perform the final valuation. Goodwill adjustments primarily related to the foreign currency translation adjustments which resulted from our foreign subsidiaries with functional currencies that are different than our reporting currency. These goodwill amounts are presented net of reductions from historical impairment adjustments. The gross amounts for GSG were $764.8 million and $677.6 million at June 30, 2024 and October 1, 2023, respectively, excluding accumulated impairment of $17.7 million at each

date. The gross amounts of goodwill for CIG were $1,366.5 million and $1,341.8 million at June 30, 2024 and October 1, 2023, respectively, excluding accumulated impairment of $121.5 million at each date.

We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our most recent annual 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. At July 3, 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 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):


	Period Ended
	June 30, 2024							October 1, 2023
	Weighted- Average Remaining Life (in Years)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount

Client relations	8.4	$	190,329	$	(50,980)	$	139,349	$	169,217	$	(36,072)	$	133,145
Backlog	0.6	72,579		(65,050)		7,529		63,825		(47,802)		16,023
Trade names	1.7	38,773		(21,192)		17,581		37,411		(12,643)		24,768
Total		$	301,681	$	(137,222)	$	164,459	$	270,453	$	(96,517)	$	173,936

Amortization expense for the third quarter and first nine months of fiscal 2024 was $13.8 million and $38.4 million, compared to $14.1 million and $29.6 million, respectively, for the prior-year periods. Estimated amortization expense for the remainder of fiscal 2024 and succeeding years is as follows (in thousands):


	Amount

2024 (remaining)	$	11,322
2025	34,712
2026	23,334
2027	16,830
2028	16,320
Beyond	61,941
Total	$	164,459