Goodwill and Acquired Intangible Assets

12 Months Ended

Apr. 01, 2011

Goodwill and Acquired Intangible Assets [Abstract]

Note 4 — Goodwill and Acquired Intangible Assets

During fiscal year 2011, the Company’s goodwill increased by approximately $8.5 million, net, of which $7.4 million was related to the acquisition of Stonewood recorded within the Company’s government systems segment. In addition, the Company recorded a $0.4 million increase to goodwill primarily for the tax effect of certain pre-acquisition net operating loss carryovers with a corresponding adjustment to deferred tax assets within the Company’s satellite services segment. The Company also recorded a $0.5 million decrease to goodwill for the tax effect of certain pre-acquisition net operating loss carryovers with a corresponding adjustment to deferred tax liabilities within the Company’s government systems segment. The remaining change relates to the effect of foreign currency translation recorded within the Company’s government systems and commercial networks segments.

The other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of eight months to ten years. Amortization expense related to other acquired intangible assets was $19.4 million, $9.5 million and $8.8 million for the fiscal years ended April 1, 2011, April 2, 2010 and April 3, 2009, respectively.

The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of the international businesses acquired. Expected amortization expense for acquired intangible assets for each of the following periods is as follows:


	Amortization
	(In thousands)

Expected for fiscal year 2012	$	18,735
Expected for fiscal year 2013		15,623
Expected for fiscal year 2014		13,879
Expected for fiscal year 2015		13,803
Expected for fiscal year 2016		10,203
Thereafter		9,646

	$	81,889

The allocation of the other acquired intangible assets and the related accumulated amortization as of April 1, 2011 and April 2, 2010 is as follows:


	Weighted	As of April 1, 2011							As of April 2, 2010
	Average			Accumulated			Net book				Accumulated			Net book
	Useful Life	Total		Amortization			Value		Total		Amortization			Value
	(In thousands)

Technology	6	$	54,344	$	(43,930	)	$	10,414	$	44,552	$	(39,147	)	$	5,405
Contracts and customer relationships	7		88,834		(28,597	)		60,237		86,707		(17,184	)		69,523
Non-compete agreements	4		9,332		(9,101	)		231		9,098		(8,870	)		228
Satellite co-location rights	9		8,600		(1,194	)		7,406		8,600		(270	)		8,330
Trade name	3		5,680		(2,446	)		3,234		5,680		(552	)		5,128
Other	6		9,331		(8,964	)		367		9,326		(8,551	)		775

Total other acquired intangible assets		$	176,121	$	(94,232	)	$	81,889	$	163,963	$	(74,574	)	$	89,389

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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