Goodwill and Intangible Assets

12 Months Ended

Sep. 29, 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 2, 2022	$	519,102	$	591,310	$	1,110,412
Acquisition activity	138,380		621,496		759,876
Translation and other adjustments	2,460		7,496		9,956
Balance at October 1, 2023	659,942		1,220,302		1,880,244
Acquisition activity	84,865		—		84,865
Translation and other adjustments	6,010		75,450		81,460
Balance at September 29, 2024	$	750,817	$	1,295,752	$	2,046,569

Goodwill amounts are presented net of reductions from historical impairment adjustments. The fiscal 2024 goodwill addition resulted from the purchase price allocations for our recent 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.

We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last review at July 1, 2024 (i.e., the first day of our fourth quarter in fiscal 2024) 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 1, 2024, we had no reporting units that had estimated fair values that exceeded their carrying values by less than 72%.

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 $768.5 million and $677.6 million at fiscal 2024 and 2023 year-ends, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $1,417.3 million and $1,341.8 million at fiscal 2024 and 2023 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
	September 29, 2024							October 1, 2023
	Weighted- Average Remaining Life (in years)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount

Client relations	8.3	$	198,726	$	(57,975)	$	140,751	$	169,217	$	(36,072)	$	133,145
Backlog	0.4	75,194		(71,101)		4,093		63,825		(47,802)		16,023
Trade names	1.4	40,926		(25,185)		15,741		37,411		(12,643)		24,768
Total		$	314,846	$	(154,261)	$	160,585	$	270,453	$	(96,517)	$	173,936

Amortization expense for the identifiable intangible assets for fiscal 2024, 2023 and 2022 was $50.0 million, $41.2 million and $13.2 million, respectively. Foreign currency translation adjustments increased net identifiable intangible assets by $13.4 million in fiscal 2024. The foreign currency translation adjustments were immaterial in fiscal 2023.

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


	Amount

2025	$	36,198
2026	24,332
2027	17,625
2028	17,116
2029	16,204
Beyond	49,110
Total	$	160,585