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GOODWILL AND INTANGIBLE ASSETS
12 Months Ended
Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
Goodwill
Intangible assets classified as goodwill are not amortized. The Company performs an annual impairment test of its goodwill during the fourth quarter of each fiscal year, which coincides with the completion of its annual forecasting and refreshing of its business outlook processes. The Company performed its annual impairment test in the fourth quarter of fiscal 2015 and concluded that no impairment charge was required. During the     year ended October 3, 2015, the Company reviewed the qualitative factors to ascertain if a “triggering” event may have taken place that may have the effect of reducing the fair value of the reporting unit below its carrying value and concluded that no triggering event had occurred in fiscal 2015.
In 2009, the Company recorded goodwill when it acquired Orthodyne and added wedge bonder products to its business.
On December 29, 2014, KSH, the Company's wholly owned subsidiary, entered into an agreement with Assembléon Holding B.V. Pursuant to the agreement, KSH purchased all of the outstanding equity interests of Assembléon, a subsidiary of Assembléon Holding B.V., in an all cash transaction for approximately $97.4 million (EUR 80 million). Assembléon, together with its subsidiaries, offers assembly equipment, processes and services for the automotive, industrial, and advanced packaging markets. The acquisition expands the Company presence in automotive, industrial and advanced packaging markets.
The acquisition was completed on January 9, 2015. Upon acquisition, Assembléon became a wholly owned subsidiary of the Company. The following table summarizes the Company's recorded goodwill as of October 3, 2015:
 
 
As of
(in thousands)
 
October 3, 2015
Balance at September 27, 2014
 
$
41,546

Acquired in business combination
 
39,726

Balance at October 3, 2015
 
$
81,272


Intangible Assets
Intangible assets with determinable lives are amortized over their estimated useful lives. The Company's intangible assets consist primarily of developed technology, customer relationships and trade and brand names.
The following table reflects net intangible assets as of October 3, 2015 and September 27, 2014
 
 
As of
 
Average estimated
(dollar amounts in thousands)
 
October 3, 2015
 
September 27, 2014
 
useful lives (in years)
Developed technology
 
$
33,200

 
$
33,200

 
7.0 to 15.0
Acquired in business combination
 
40,880

 

 
 
Accumulated amortization
 
(35,244
)
 
(28,458
)
 
 
Net developed technology
 
$
38,836

 
$
4,742

 
 
 
 
 
 
 
 
 
Customer relationships
 
$
19,300

 
$
19,300

 
5.0 to 6.0
Acquired in business combination
 
17,668

 

 
 
Accumulated amortization
 
(21,509
)
 
(19,300
)
 
 
Net customer relationships
 
$
15,459

 
$

 
 
 
 
 
 
 
 
 
Trade and brand names
 
$
4,600

 
$
4,600

 
7.0 to 8.0
Acquired in business combination
 
2,915

 

 
 
Accumulated amortization
 
(4,339
)
 
(3,451
)
 
 
Net trade and brand names
 
$
3,176

 
$
1,149

 
 
 
 
 
 
 
 
 
Other intangible assets
 
$
2,500

 
$
2,500

 
1.9
Accumulated amortization
 
(2,500
)
 
(2,500
)
 
 
Net wedge bonder other intangible assets
 
$

 
$

 
 
 
 
 
 
 
 
 
Net intangible assets
 
$
57,471

 
$
5,891

 
 


The following table reflects estimated annual amortization expense related to intangible assets as of October 3, 2015:
 
As of
(in thousands)
October 3, 2015
Fiscal 2016
$
6,660

Fiscal 2017
6,086

Fiscal 2018
6,086

Fiscal 2019
6,086

Fiscal 2020 and thereafter
32,553

Total amortization expense
$
57,471