GOODWILL AND PURCHASED INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2012

GOODWILL AND PURCHASED INTANGIBLE ASSETS

GOODWILL AND PURCHASED INTANGIBLE ASSETS

Note 9—Goodwill and purchased intangible assets

The changes in the carrying amount of goodwill for the four years ended September 30, 2012 are as follows (in thousands):

	Transportation systems			Defense systems			Mission support services		Total



Balances at October 1, 2008	$	8,210		$	16,087		$	36,735		61,032
Reduction of acquired tax accrual		—			(1,083	)		—		(1,083	)
Foreign currency exchange rate changes		(772	)		256			—		(516	)

Balances at September 30, 2009		7,438			15,260			36,735		59,433
Goodwill acquired during the year		—			4,767			—		4,767
Foreign currency exchange rate changes		(115	)		57			—		(58	)

Balances at September 30, 2010		7,323			20,084			36,735		64,142
Goodwill acquired during the year		—			435			81,698		82,133
Foreign currency exchange rate changes		(54	)		134			—		80

Balances at September 30, 2011		7,269			20,653			118,433		146,355
Foreign currency exchange rate changes		248			330			—		578

Balances at September 30, 2012	$	7,517		$	20,983		$	118,433	$	146,933

Purchased intangible assets: The table below summarizes our purchased intangible assets (in thousands):

	September 30, 2012							September 30, 2011							September 30, 2010							September 30, 2009


	Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount

Contract and program intangibles	$	71,145	$	(40,785	)	$	30,360	$	70,159	$	(27,921	)	$	42,238	$	38,560	$	(15,170	)	$	23,390	$	35,614	$	(8,875	)	$	26,739
In-process research & development		—		—			—		798		—			798		1,671		—			1,671		—		—			—
Other purchased intangibles		14,560		(5,546	)		9,014		14,560		(3,457	)		11,103		2,787		(1,553	)		1,234		2,787		(908	)		1,879

Total	$	85,705	$	(46,331	)	$	39,374	$	85,517	$	(31,378	)	$	54,139	$	43,018	$	(16,723	)	$	26,295	$	38,401	$	(9,783	)	$	28,618

The table below shows our expected amortization for purchased intangibles as of September 30, 2012, for each of the next five years and thereafter (in thousands):

	Transportation systems		Defense systems		Mission support services		Total



2013	$	1,671	$	1,019	$	9,556	$	12,246
2014		1,671		593		7,066		9,330
2015		1,476		209		4,810		6,495
2016		1,380		66		2,356		3,802
2017		1,380		—		582		1,962
Thereafter		2,415		—		3,124		5,539

	$	9,993	$	1,887	$	27,494	$	39,374

Our purchased intangible assets are subject to amortization and we use a combination of straight-line and accelerated methods, based on the expected cash flows from the assets, over a weighted average period of 6 years. Total amortization expense for 2012, 2011, 2010 and 2009 was $14.8 million, $14.7 million, $6.8 million and $6.4 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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