Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2013

NOTE 6. Goodwill and Other Intangibles

The following table summarizes the activity in the Company’s goodwill account during the nine month period ended September 30, 2013:

(in millions)	September 30, 2013
Balance, December 31, 2012	$	8.7
Acquisitions	444.4
Balance, September 30, 2013	$	453.1

The following table summarizes the Company’s intangible assets for the nine months ended September 30, 2013:

	As of September 30, 2013
(in millions)	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets:
Technology	3 – 5	$	26.9	$	(3.7	)	$	23.2
Customer relationships	12	10.0		(0.6		)	9.4
Trademarks	3	5.0		(1.1		)	3.9
FCC licenses and other	1 - 20	2.7		(0.7		)	2.0
Total		$	44.6	$	(6.1	)	$	38.5

The gross carrying amounts of intangible assets are removed when the recorded amounts have been fully amortized. During the nine month period ended September 30, 2013, the Company added approximately $43.5 million of intangible assets that were related to its acquisition of GeoEye and $1.1 million of intangible assets related to its acquisition of Tomnod. The Company is in the process of finalizing the fair value of goodwill and intangible assets acquired. Such valuations will be completed by January 31, 2014. Accordingly, these amounts represent preliminary estimates, which are subject to change upon finalization of purchase accounting, and any such change may have a material effect on the Company’s results of operations.

Total intangible amortization expense recognized was $2.3 million and $6.1 million during the three and nine month periods ended September 30, 2013, respectively and none during the three and nine month periods ended September 30, 2012. The estimated future annual amortization expense for acquired intangible assets is as follows:

(in millions)
Fiscal Years Ending December 31,	Amount
2013(1)	$	2.3
2014	9.1
2015	8.2
2016	6.2
2017	6.1
Thereafter	6.6
Total amortization expense	$	38.5

(1) Represents estimated amortization for the remaining three month period ended December 31, 2013.

- 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