Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
You should carefully review and consider the information regarding certain factors that could materially affect our business, financial condition or future results set forth under Item 1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. There has been one change from the factors disclosed in our 2023 Annual Report on Form 10-K filed on August 15, 2023, although we may disclose additional changes to such factors from time to time in our future filings with the Securities and Exchange Commission.
We have a significant amount of goodwill and intangible assets on our consolidated financial statements that are subject to impairment based upon future adverse changes in our business or prospects.
At March 29, 2024, the carrying values of goodwill and identifiable intangible assets on our balance sheet were $938.1 million and $261.8 million, respectively. We evaluate indefinite lived intangible assets and goodwill for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Indefinite lived intangible assets are impaired and goodwill impairment is indicated when their book value exceeds fair value. We also review finite-lived intangible assets and long-lived assets when indications of potential impairment exist, such as a significant reduction in undiscounted cash flows associated with the assets. Should the fair value of our long-lived assets decline because of reduced operating performance, market declines, or other indicators of impairment, a charge to operations for impairment may be necessary. The value of goodwill and intangible assets from the allocation of purchase price from our acquisitions will be derived from our business operating plans and is susceptible to an adverse change in demand, input costs or general changes in our business or industry and could require an impairment charge in the future. During the quarter ended March 29, 2024, we assessed potential triggering events for goodwill impairment and concluded that there was a triggering event. Based on the quantitative evaluation during the quarter ended March 29, 2024, we determined that the Mission Systems reporting unit had an estimated fair value in excess of their carrying value of 2.5% and the Microelectronics reporting unit had an estimated fair value that substantially exceeded its carrying value.
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