Goodwill and Intangible Assets
Goodwill
The table below presents changes in the carrying amount of goodwill by reportable segment for the periods presented:
(Amounts in millions)DSGESTotal
Balance as of September 29, 2023$1,256 $1,635 $2,891 
Acquisition of CMS1,156 1,509 2,665 
Balance as of September 27, 20242,412 3,144 5,556 
Measurement period adjustments (1)
41 298 339 
Divestitures(193)— (193)
Foreign currency translation— 
Balance as of October 3, 2025$2,260 $3,443 $5,703 
(1)    Represents changes to goodwill resulting from measurement period adjustments recorded in fiscal year 2025 associated with the acquisition of CMS purchase price allocation.
During the first quarter of fiscal year 2025, we performed an interim goodwill impairment test both before and after we amended our organizational structure. In the fourth quarter of fiscal year 2025, we performed our annual goodwill impairment test. We concluded no impairment charges were necessary as a result of either test.
During the first quarter of fiscal year 2023, we performed an interim goodwill impairment test both before and after we amended our organizational structure. Our interim quantitative goodwill impairment test concluded that the carrying value of one reporting unit exceeded its fair value. As a result, a non-cash impairment charge of $186 million was recognized during the year ended September 29, 2023.
Accumulated goodwill impairment was $294 million as of both October 3, 2025 and September 27, 2024.
Intangible Assets
Intangible assets, net consisted of the following:
As of October 3, 2025
(Amounts in millions, except years)Weighted
Average
Useful Life
(Years)
Gross
Carrying
Value
Accumulated
Amortization
Net
Backlog5.1$661 $(586)$75 
Customer relationship intangible assets11.12,587 (721)1,866 
Capitalized software4.627 (13)14 
Total intangible assets, net$3,275 $(1,320)$1,955 
As of September 27, 2024
(Amounts in millions, except years)Weighted
Average
Useful Life
(Years)
Gross
Carrying
Value
Accumulated
Amortization
Net
Backlog2.4$931 $(552)$379 
Customer relationship intangible assets12.92,781 (550)2,231 
Capitalized software4.823 (10)13 
Total intangible assets, net$3,735 $(1,112)$2,623 
Amortization expense was $479 million, $228 million and $298 million for the years ended October 3, 2025, September 27, 2024 and September 29, 2023, respectively.
Future amortization expense is expected to be as follows:
Year Ending September 30,
(Amounts in millions)
2026$376 
2027334 
2028265 
2029220 
2030186 
Thereafter574 
Total$1,955 

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Dec 17, 2024

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.