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GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Jun. 27, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
Intangible assets classified as goodwill are not amortized. The goodwill established in connection with our acquisitions represents the estimated future economic benefits arising from the assets we acquired that did not qualify to be identified and recognized individually. The goodwill also includes the value of expected future cash flows from the acquisitions, expected synergies with our other affiliates and other unidentifiable intangible assets. 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 business outlook process.
The Company performed its annual impairment test in the fourth quarter of fiscal 2019 and concluded that no impairment charge was required. Any future adverse changes in expected operating results and/or unfavorable changes in other economic factors used to estimate fair values could result in a noncash impairment in the future.
During the three and nine months ended June 27, 2020, the Company reviewed 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. While we have concluded that a triggering event did not occur during the quarter ended June 27, 2020, a prolonged COVID-19 pandemic could impact the results of operations due to changes to assumptions utilized in the determination of the estimated fair values of the reporting units that could be significant enough to trigger an impairment. Net sales and earnings growth rates could be negatively impacted by reductions or changes in demand for our products. The discount rate utilized in our valuation model could also be impacted by changes in the underlying interest rates and risk premiums included in the determination of the cost of capital.
The following table summarizes the Company's recorded goodwill by reporting segments as of June 27, 2020 and September 28, 2019:
 
As of
(in thousands)
June 27, 2020
 
September 28, 2019
Capital Equipment
$
29,765

 
$
29,480

Aftermarket Products and Services ("APS")
26,288

 
26,211

Total goodwill
$
56,053

 
$
55,691


 
 
 
 
 
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 June 27, 2020 and September 28, 2019: 
 
As of
 
Average estimated
(dollar amounts in thousands)
June 27, 2020
 
September 28, 2019
 
useful lives (in years)
Developed technology
$
88,591

 
$
87,209

 
7.0 to 15.0
Accumulated amortization
(52,327
)
 
(48,718
)
 
 
Net developed technology
$
36,264

 
$
38,491

 
 
 
 
 
 
 
 
Customer relationships
$
35,586

 
$
35,180

 
5.0 to 6.0
Accumulated amortization
(34,218
)
 
(31,862
)
 
 
Net customer relationships
$
1,368

 
$
3,318

 
 
 
 
 
 
 
 
Trade and brand names
$
7,285

 
$
7,219

 
7.0 to 8.0
Accumulated amortization
(6,710
)
 
(6,377
)
 
 
Net trade and brand names
$
575

 
$
842

 
 
 
 
 
 
 
 
Other intangible assets
$
2,500

 
$
2,500

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

 
$
—

 
 
 
 
 
 
 
 
Net intangible assets
$
38,207

 
$
42,651

 
 

The following table reflects estimated annual amortization expense related to intangible assets as of June 27, 2020:
 
As of
(in thousands)
June 27, 2020
Remaining fiscal 2020
$
1,845

Fiscal 2021
5,346

Fiscal 2022
4,380

Fiscal 2023
4,284

Fiscal 2024
4,284

Thereafter
18,068

Total amortization expense
$
38,207