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Acquisitions and Divestitures
12 Months Ended
Dec. 31, 2014
Acquisitions and Divestitures

Note 13 – Acquisitions and Divestitures

Acquisitions

We paid $898 million in 2014 for acquisitions of businesses and investments in affiliates, net of cash acquired, primarily related to the acquisitions of Systems Made Simple, Zeta and Industrial Defender. On December 1, 2014, we completed the acquisition of all interests in Systems Made Simple, which provides solutions that leverage information technology in the healthcare domain to improve, increase, enable and ensure the exchange and interoperability of information between patients, providers, and payers and has been included in our IS&GS business segment. On August 18, 2014, we completed the acquisition of all interests in Zeta, which designs systems that enable collection, processing, safeguarding and dissemination of information for intelligence and defense communities, which has been included in our Space Systems business segment. On April 7, 2014, we completed the acquisition of all interest in Industrial Defender, a provider of cyber security solutions for control systems in the oil and gas, utility and chemical industries, which has been included in our IS&GS business segment. In connection with these acquisitions, we preliminarily recorded goodwill of $657 million, related to expected synergies from combining operations and value of the existing workforce. The recorded goodwill is not deductible for tax purposes. Additionally, we recorded other intangible assets of $223 million, primarily related to customer relationships and technologies, which will be amortized over a weighted average period of eight years.

We paid $269 million in 2013 for acquisitions of businesses and investments in affiliates, net of cash acquired, primarily related to the acquisition of all interests in Amor Group, a United Kingdom-based company specializing in information technology, civil government services and the energy market and has been included in our IS&GS business segment. In connection with these acquisitions, we recorded goodwill of $175 million, which is not deductible for tax purposes. Additionally, we recorded other intangible assets of $34 million, related to customer relationships and technologies, which will be amortized over a weighted average period of eight years.

We paid $259 million in 2012 for acquisitions of businesses and investments in affiliates, net of cash acquired, primarily related to the acquisitions of Chandler/May, Inc., CDL Systems Ltd. and Procerus Technologies, L.C., and each has been included within our MST business segment. These companies specialize in the design, development, manufacturing, control and support of advanced unmanned systems. In connection with these acquisitions, we recorded goodwill of $197 million, of which $69 million will be amortized for tax purposes. Additionally, we recorded other intangible assets of $41 million, related to technologies and customer relationships, which will be amortized over a weighted average period of six years.

Divestitures

Discontinued operations for 2013 included a benefit of $31 million resulting from the resolution of certain tax matters related to a business previously sold prior to 2013.