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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles, Net |
Note 3 —Goodwill and Other Intangibles, Net Goodwill The following table details goodwill (in thousands):
Goodwill and Intangibles Impairment Valuation We review goodwill and indefinite-lived intangible assets for impairment annually (in the fourth quarter) or more frequently if impairment indicators arise. During the three months ended June 28, 2025, management identified certain indicators (i.e., decline in market capitalization and reduced operating performance), which required an interim goodwill and indefinite-lived intangible asset impairment evaluation. As a result, we performed a quantitative impairment test for our only reporting unit under ASC 350, Intangibles - Goodwill and Other. The fair value of the reporting unit was estimated using a combined discounted cash flow model and market approach, consistent with valuation methodologies used historically. Key assumptions of the analysis included:
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Discount rate: 16%
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Long-term growth rate: 3%
Based on the results of this analysis, we determined that the fair value of the reporting unit exceeded its carrying amount, and therefore no impairment loss needed to be recognized. Our indefinite-lived intangible assets were tested for impairment using the relief of royalty method consistent with standard valuation methodologies used in prior acquisitions. These same key assumptions were used in the impairment evaluation of our indefinite-lived intangible assets. Based on the analysis performed it was determined that the fair value of the indefinite-lived intangibles was greater than the carrying value and thus no impairment charge was recognized. Other Intangibles Other intangible assets consisted of the following as of June 28, 2025 (in thousands, except weighted average remaining useful life):
Other intangible assets consisted of the following as of September 28, 2024 (in thousands, except weighted average remaining useful life):
Other intangible assets consisted of the following as of June 29, 2024 (in thousands, except weighted average remaining useful life):
Amortization expense was $0.9 million and $0.9 million for the three months ended June 28, 2025 and June 29, 2024. Amortization expense was $2.7 million and $2.8 million for the nine months ended June 28, 2025 and June 29, 2024. No impairment of goodwill or other intangible assets was recorded during the three and nine months ended June 28, 2025 and June 29, 2024. The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our condensed consolidated balance sheet as of June 28, 2025 (in thousands):
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