Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 113

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 113
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 risk of failing the quantitative assessment and goodwill assigned to the respective reporting units could be impaired. Any impairment charges that the Company may record in the future could be material to its results of operations and financial condition.

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G.Intangible Assets

Intangible assets consisted of the following:GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountWeightedAverageUsefulLifeJune 27, 2025Customer relationships$340,110 $(182,656)$157,454 12.2 yearsLicensing agreements and patents4,162 (3,086)1,076 5.0 yearsCompleted technologies125,586 (73,505)52,081 9.2 years$469,858 $(259,247)$210,611 June 28, 2024Customer relationships$342,610 $(155,903)$186,707 12.2 yearsLicensing agreements and patents4,162 (2,254)1,908 5.0 yearsCompleted technologies122,680 (62,975)59,705 9.4 yearsOther3,238 (1,046)2,192 5.0 years$472,690 $(222,178)$250,512 Estimated future amortization expense for intangible assets remaining at June 27, 2025 is as follows:Fiscal YearTotals2026$38,479 202735,680 202831,817 202928,523 203023,788 Thereafter52,324 Total future amortization expense$210,611 The Company reviews net intangible assets with finite lives for impairment when an event occurs indicating the potential for impairment. Based on the Company’s last assessment, the Company believes that the carrying values of net intangible assets were recoverable as of June 27, 2025. However, if business conditions deteriorate, the Company may be required to record impairment losses, and or increase the amortization of intangibles in the future. Any impairment charges that the Company may record in the future could be material to the results of operations and financial condition.During fiscal 2025, the Company acquired completed technologies of $4,866 with a useful life of 7.5 years in connection with the Company's asset acquisition of Star Lab.

H.Restructuring

During fiscal 2025, the Company incurred $7,216 of restructuring charges in connection with workforce reductions that eliminated approximately 145 positions.The Company incurs