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GOODWILL AND PURCHASED INTANGIBLE ASSETS
12 Months Ended
Sep. 30, 2011
GOODWILL AND PURCHASED INTANGIBLE ASSETS 
GOODWILL AND PURCHASED INTANGIBLE ASSETS

NOTE 8—GOODWILL AND PURCHASED INTANGIBLE ASSETS

 

The changes in the carrying amount of goodwill for the two years ended September 30, 2011 are as follows:

 

 

 

Transportation
Systems

 

Defense
Systems

 

Mission
Support
Services

 

Total

 

 

 

(in thousands)

 

Balances at October 1, 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

 

 

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

 

 

 

September 30, 2011

 

September 30, 2010

 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net
Carrying
Amount

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

Contract and program intangibles

 

$

70,159

 

$

(27,921

)

$

42,238

 

$

38,560

 

$

(15,170

)

$

23,390

 

In-process research & development

 

798

 

 

798

 

1,671

 

 

1,671

 

Other purchased intangibles

 

14,560

 

(3,457

)

11,103

 

2,787

 

(1,553

)

1,234

 

Total

 

$

85,517

 

$

(31,378

)

$

54,139

 

$

43,018

 

$

(16,723

)

$

26,295

 

 

The table below shows our expected amortization for purchased intangibles as of September 30, 2011, for each of the next five years (in thousands):

 

 

 

Transportation
Systems

 

Defense
Systems

 

Mission
Support
Services

 

Total

 

2012

 

$

1,692

 

$

1,138

 

$

11,980

 

$

14,810

 

2013

 

1,651

 

1,020

 

9,557

 

12,228

 

2014

 

1,651

 

593

 

7,066

 

9,310

 

2015

 

1,470

 

209

 

4,810

 

6,489

 

2016

 

1,380

 

66

 

2,356

 

3,802

 

Thereafter

 

3,796

 

 

3,704

 

7,500

 

 

 

$

11,640

 

$

3,026

 

$

39,473

 

$

54,139

 

 

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 2011, 2010, and 2009, was $14.7 million, $6.8 million and $6.4 million, respectively.