XML 47 R10.htm IDEA: XBRL DOCUMENT

Goodwill and Intangibles

12 Months Ended

Oct. 02, 2011

5. Goodwill and Intangibles

Our goodwill was $569.4 million at October 2, 2011, and $394.4 million at October 3, 2010. Our acquired identifiable intangible assets had a net book value of $81.1 million and $46.0 million at October 2, 2011, and October 3, 2010, respectively. The following table summarizes the changes in the carrying value of goodwill:

		ECS			TSS		EAS⁽¹⁾		RCM		Total

		(in thousands)

Balance at September 27, 2009		$	189,416		$	57,256	$	15,970	$	57,043	$	319,685
	Additions		42,293			10,226		–		3,892		56,411
	Adjustments		7,474			1,179		1,240		3,000		12,893
	Currency translation adjustments		5,433			–		–		–		5,433

Balance at October 3, 2010			244,616			68,661		17,210		63,935		394,422
	Additions		149,193			11,469		–		–		160,662
	Adjustments		15,355			1,961		500		–		17,816
	Currency translation adjustments		(3,486	)		–		–		–		(3,486	)

Balance at October 2, 2011		$	405,678		$	82,091	$	17,710	$	63,935	$	569,414

⁽¹⁾: Gross amount of goodwill for the EAS segment was $122.7 million and $122.2 million at October 2, 2011, and October 3, 2010, respectively. For both periods, accumulated impairment losses for the EAS segment were $105 million reflecting impairment charges in fiscal 2005. There were no impairment losses in the other reportable segments.

The goodwill additions are attributable to the fiscal 2011 acquisitions described in Note 4, "Mergers and Acquisitions." Substantially all of the goodwill additions are not deductible for income tax purposes. The foreign currency translation adjustments relate to our foreign operations. The goodwill adjustments reflect earn-out payments and accruals associated with acquisitions consummated prior to fiscal 2010, which are accounted for as goodwill adjustments under previous accounting rules.

The gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in "Intangible assets – net" on the consolidated balance sheets, were as follows:

		October 2, 2011							October 3, 2010

		Weighted- Average Remaining Life (in years)		Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
		($ in thousands)

Non-compete agreements			2.0	$	5,175	$	(3,430	)	$	4,295	$	(2,177	)
Client relations			6.3		81,619		(17,951	)		41,020		(8,351	)
Backlog			0.9		52,938		(39,452	)		35,311		(24,329	)
Technology and trade names			4.5		2,684		(530	)		246		(20	)

	Total			$	142,416	$	(61,363	)	$	80,872	$	(34,877	)

In fiscal 2011, the increases in gross amounts are attributable to the fiscal 2011 acquisitions described in Note 4, "Mergers and Acquisitions" and, to a lesser extent, foreign currency translation adjustments. Amortization expense for these intangible assets for fiscal 2011, 2010 and 2009 was $28.0 million, $12.7 million and $9.8 million, respectively. Estimated amortization expense for the succeeding five years and beyond is as follows:

		Amount

		(in thousands)

2012		$	26,203
2013			12,146
2014			10,875
2015			10,588
2016			9,096
Beyond			12,145

	Total	$	81,053

- 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.

+ References+ Details