Goodwill and Intangible Assets

3 Months Ended

Dec. 29, 2024

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 by reportable segment (in thousands):

	GSG		CIG		Total
Balance at September 29, 2024	$	750,817	$	1,295,752	$	2,046,569
Translation adjustments	(4,124)		(73,761)		(77,885)
Balance at December 29, 2024	$	746,693	$	1,221,991	$	1,968,684

Translation adjustments resulted from our goodwill amounts in foreign subsidiaries with functional currencies that are different than our reporting currency. The goodwill amounts presented in the table above are net of reductions from historical impairment adjustments. The gross amounts for GSG were $764.4 million and $768.5 million at December 29, 2024 and September 29, 2024, respectively, excluding accumulated impairment of $17.7 million at each date. The gross amounts of goodwill for Commercial/International Services Group ("CIG") were $1,343.5 million and $1,417.3 million at December 29, 2024 and September 29, 2024, respectively, excluding accumulated impairment of $121.5 million at each period end.

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

	As of
	December 29, 2024							September 29, 2024
	Weighted- Average Remaining Life (in Years)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Client relations	8.0	$	189,027	$	(60,294)	$	128,733	$	198,726	$	(57,975)	$	140,751
Backlog	0.2	71,647		(70,405)		1,242		75,194		(71,101)		4,093
Trade names	1.2	38,349		(26,227)		12,122		40,926		(25,185)		15,741
Total		$	299,023	$	(156,926)	$	142,097	$	314,846	$	(154,261)	$	160,585

Amortization expense for the identifiable intangible assets for the first quarter of fiscal 2025 was $10.7 million, compared to $12.5 million for the prior-year quarter. Estimated amortization expense for the remainder of fiscal 2025 and succeeding years is as follows (in thousands):

	Amount
2025 (remaining)	$	24,093
2026	23,384
2027	16,754
2028	16,245
2029	15,387
Beyond	46,234
Total	$	142,097