Goodwill represents the excess of the consideration transferred net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.

The Company reviews goodwill for impairment on a reporting unit basis annually as of the end of the fiscal year, and whenever events or circumstances (“triggering events”) indicate that the carrying value of goodwill may not be recoverable. The Company monitors for interim triggering events on an ongoing basis. Such triggering events include unfavorable operating results and macroeconomic trends.

The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge.

On February 14, 2025, as discussed in Note B, the Company acquired goodwill in the estimated amount of $2,131 and intangible assets in the estimated amount of $2,847 as part of the acquisition of Kobelt. These estimates are preliminary and are pending completion of several elements, including finalization of an independent valuation of fair value of the assets acquired and liabilities assumed and final review by the Company’s management. The final determination of fair values and resulting goodwill may differ significantly from what is currently reflected.

As of March 28, 2025, changes in the carrying amount of goodwill is summarized as follows:

For the quarter ended March 28. 2025, the Company performed a review of potential triggering events, and concluded there were no triggering events that indicated that the fair value of its reporting units had not more likely than not declined to below their carrying values at March 28, 2025. The Company will perform an annual impairment test for its new and stand-alone reporting unit, Kobelt, as of June 30, 2025.

As of March 28, 2025, the following acquired intangible assets have definite useful lives and are subject to amortization:

Other intangibles consist mainly of computer software. Amortization is recorded on the basis of straight-line or accelerated, as appropriate, over the estimated useful lives of the assets.

The weighted average remaining useful life of the intangible assets included in the table above is approximately 8 years.

Intangible amortization expense was $915 and $822 for the quarters ended March 28, 2025, and March 29, 2024, respectively. Intangible amortization expense was $2,721 and $2,458 for the three quarters ended March 28, 2025, and March 29, 2024, respectively. Estimated intangible amortization expense for the remainder of fiscal 2025 and each of the next five fiscal years and thereafter is as follows: