Quarterly report [Sections 13 or 15(d)]

Goodwill and Other Intangibles, Net (Tables)

v3.25.2
Goodwill and Other Intangibles, Net (Tables)
 9 Months Ended
Jun. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill

The following table details goodwill (in thousands):

 

 

 

June 28, 2025

 

 

September 28, 2024

 

 

June 29, 2024

 

Balance at beginning of the period

 

$

180,698

 

 

$

180,698

 

 

$

180,698

 

Acquisitions, net of measurement period adjustments

 

 

-

 

 

 

-

 

 

 

-

 

Balance at the end of the period

 

$

180,698

 

 

$

180,698

 

 

$

180,698

 

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:

•
Discount rate: 16%
•
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.
Summary of Other Intangible Assets

Other intangible assets consisted of the following as of June 28, 2025 (in thousands, except weighted average remaining useful life):

 

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

8.2

 

 

$

22,100

 

 

$

(6,834

)

 

$

15,266

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

9,350

 

 

 

—

 

 

 

9,350

 

Non-compete agreements

 

 

3.7

 

 

 

2,260

 

 

 

(1,523

)

 

 

737

 

Consumer relationships

 

 

6.1

 

 

 

15,400

 

 

 

(9,097

)

 

 

6,303

 

Other intangibles

 

 

3.3

 

 

 

4,000

 

 

 

(3,947

)

 

 

53

 

Total

 

 

 

 

$

53,110

 

 

$

(21,401

)

 

$

31,709

 

 

Other intangible assets consisted of the following as of September 28, 2024 (in thousands, except weighted average remaining useful life):

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

8.9

 

 

$

22,100

 

 

$

(5,355

)

 

$

16,745

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

9,350

 

 

 

—

 

 

 

9,350

 

Non-compete agreements

 

 

4.4

 

 

 

2,260

 

 

 

(1,368

)

 

 

892

 

Consumer relationships

 

 

6.6

 

 

 

15,400

 

 

 

(8,038

)

 

 

7,362

 

Other intangibles

 

 

4.1

 

 

 

4,000

 

 

 

(3,920

)

 

 

80

 

Total

 

 

 

 

$

53,110

 

 

$

(18,681

)

 

$

34,429

 

 

Other intangible assets consisted of the following as of June 29, 2024 (in thousands, except weighted average remaining useful life):

 

 

Weighted
Average
Remaining
Useful Life
(in Years)

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Trade name and trademarks (finite life)

 

 

9.2

 

 

$

22,100

 

 

$

(4,861

)

 

$

17,239

 

Trade name and trademarks (indefinite life)

 

Indefinite

 

 

 

9,350

 

 

 

—

 

 

 

9,350

 

Non-compete agreements

 

 

4.6

 

 

 

2,260

 

 

 

(1,317

)

 

 

943

 

Consumer relationships

 

 

6.8

 

 

 

15,400

 

 

 

(7,685

)

 

 

7,715

 

Other intangibles

 

 

4.3

 

 

 

4,000

 

 

 

(3,904

)

 

 

96

 

Total

 

 

 

 

$

53,110

 

 

$

(17,767

)

 

$

35,343

 
Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets

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):

 

 

Amount

 

Remainder of fiscal 2025

 

$

980

 

2026

 

 

3,382

 

2027

 

 

3,262

 

2028

 

 

3,150

 

2029

 

 

2,899

 

Thereafter

 

 

8,686

 

Total

 

$

22,359