Capital Assets

3 Months Ended

Jan. 02, 2021

CAPITAL ASSETS

Property and Equipment

Property and equipment, net are as follows:


	January 2, 2021		October 3, 2020
Land and improvements	$	3,967	$	3,963
Buildings and improvements	72,076		75,689
Machinery and equipment	231,802		228,155
Total property and equipment	307,845		307,807
Less: Accumulated depreciation	(217,599)		(212,697)
Total property and equipment, net	$	90,246	$	95,110

Goodwill

Changes to the carrying amount of goodwill are as follows:


	Test & Simulation		Sensors		Total
Balance, October 3, 2020 1	$	48,840	$	179,800	$	228,640

Currency translation	1,948		35		1,983
Balance, January 2, 2021	$	50,788	$	179,835	$	230,623

1 Goodwill is net of impairment charges recorded in fiscal year 2020 of $53,344 in Test & Simulation and $188,174 in Sensors.

Intangible Assets

Intangible assets are as follows:


	January 2, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (in Years)
Software development costs 2	$	55,441	$	(16,365)	$	39,076	6.9
Technology and patents	59,267		(20,360)		38,907		14.7
Trademarks and trade names	25,332		(5,229)		20,103		17.6
Customer lists	197,403		(48,347)		149,056		15.7
Land-use rights	1,201		(997)		204		5.4
Other	5,291		(3,804)		1,487		1.7
Trade names	44,100		—		44,100		Indefinite
Total intangible assets	$	388,035	$	(95,102)	$	292,933	14.0


	October 3, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (in Years)
Software development costs 2	$	53,171	$	(16,299)	$	36,872	6.9
Technology and patents	58,575		(19,033)		39,542		14.7
Trademarks and trade names	24,688		(4,752)		19,936		17.6
Customer lists	196,251		(45,079)		151,172		15.7
Land-use rights	2,345		(1,223)		1,122		26.1
Other	5,070		(2,719)		2,351		1.7
Trade names	44,100		—		44,100		Indefinite
Total intangible assets	$	384,200	$	(89,105)	$	295,095	14.1

2 The gross carrying amount of software development costs as of January 2, 2021 and October 3, 2020 includes $37,736 and $35,466, respectively, of software not yet available for general release to the public.

Amortization expense recognized related to finite-lived intangible assets is as follows:


	Three Months Ended
	January 2, 2021		December 28, 2019
Amortization expense	$	5,655	$	4,785

Assessing goodwill, indefinite-lived intangible asset and long-lived assets for impairment requires management to make assumptions and apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. Due to the uncertainty stemming from the COVID-19 pandemic, as described in Note 17, we assessed whether there has been an event or change in circumstances that would indicate that it is more likely than not (a likelihood of more than 50%) that the fair value of a reporting unit and indefinite-lived intangible asset were less than their carrying value. We determined that it was more likely than not that the fair value exceeds the carrying amount for all of our reporting units and our indefinite-lived intangible asset as of the end of the first quarter of fiscal year 2021. Therefore, a quantitative analysis was not necessary. In performing this assessment, we believe we have made reasonable accounting conclusions based on the facts and circumstances that were available as of the reporting date considering the evolving situation resulting from the COVID-19 pandemic and the pending merger with Amphenol. However, if actual results are not consistent with the estimates and assumptions used in the calculations, we may be exposed to future impairment losses that could be material.

Estimated future amortization expense related to finite-lived intangible assets is as follows:


	Amortization Expense
Remainder of 2021	$	16,611
2022	21,738
2023	21,636
2024	21,398
2025	21,210
2026	20,942
Thereafter	125,298

Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to fluctuations in foreign currency exchange rates, future acquisitions, impairments, changes in amortization periods or other factors.