Business Acquisition and Goodwill

6 Months Ended

Jun. 30, 2011

Business Acquisition and Goodwill [Abstract]

Business Acquisition and Goodwill

(2)  Business Acquisition and Goodwill

On April 2, 2010, the company acquired certain assets and liabilities of the spacecraft development and manufacturing business of General Dynamics Advanced Information Systems, a subsidiary of General Dynamics Corporation (the "Seller"), for $55 million in cash, subject to a potential working capital adjustment.  The company's consolidated financial statements reflect the operations of the acquired business since the date of acquisition.  The company and the Seller are each disputing the other party's claim for a purchase price adjustment based on the calculation of working capital as of the closing date.

The allocation of the purchase price for the tangible and identifiable intangible assets acquired and liabilities assumed was based on their estimated fair values at the date of acquisition using established valuation techniques.  The company may recognize changes to the acquired assets or liabilities as a result of a working capital adjustment or if new information is obtained about facts and circumstances that existed as of the acquisition date.  During the quarter ended June 30, 2011, the company recorded an additional $0.5 million of goodwill related to the update of purchase accounting associated with the acquisition.