|
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. |