Goodwill And Other Intangible Assets

6 Months Ended

Jul. 02, 2011

Goodwill And Other Intangible Assets

Goodwill And Other Intangible Assets

3. Goodwill and Other Intangible Assets

The consolidated financial statements include the identifiable intangible assets and goodwill resulting from acquisitions of businesses completed prior to 2010.  The following table presents the changes in the carrying amount of goodwill by reportable operating segment during the six months ended July 2, 2011 (in thousands):

		Global
	LXE	Tracking	Aviation	Total
Balance as of December 31, 2010	$                1,937	23,429	35,108	60,474
Foreign currency translation adjustment	80	0	0	80
Balance as of July 2, 2011	$                2,017	23,429	35,108	60,554

The Company had $21.0 million of accumulated impairment losses recorded on LXE's goodwill as of July 2, 2011.

The following table presents the gross carrying amounts and accumulated amortization, in total and by major intangible asset class, for the Company's intangible assets subject to amortization as of July 2, 2011 and December 31, 2010 (in thousands):

		As of July 2, 2011
	Gross		Net
	Carrying	Accumulated	Carrying
	Amount	Amortization	Amount
Developed technology	$            42,115	21,905	20,210
Customer relationships	19,305	5,941	13,364
Trade names and trademarks	6,332	2,318	4,014
Other	2,440	2,346	94
	$            70,192	32,510	37,682

		As of December 31, 2010
	Gross		Net
	Carrying	Accumulated	Carrying
	Amount	Amortization	Amount
Developed technology	$            41,525	19,039	22,486
Customer relationships	19,164	4,787	14,377
Trade names and trademarks	6,281	1,961	4,320
Other	2,428	2,292	136
	$            69,398	28,079	41,319

Amortization expense related to these intangible assets for the three months and six months ended July 2, 2011 was $1.9 million and $3.9 million, respectively, and for the three months and six months ended July 3, 2010 was $2.1 million and $4.1 million, respectively. Expected amortization expense for the remainder of 2011 and for each of the five succeeding years is as follows:  2011 - $3.9 million, 2012 - $8.0 million, 2013 - $7.4 million, 2014 - $3.9 million, 2015 - $3.7 million and 2016 - $3.5 million.

Amortization expense for intangible assets and other items included in cost of sales, selling, general and administrative expense, and in research and development expenses for the three and six months ended July 2, 2011 and July 3, 2010 are summarized in the following table (in millions of dollars):

	Three Months Ended		Six Months Ended
	July 2	July 3	July 2	July 3
	2011	2010	2011	2010
Cost of sales	$              1.0	0.9	2.1	1.9
Selling, general and administrative	1.0	1.4	1.9	2.3
Research and development	0.1	0.1	0.1	0.1
Total amortization expense	$              2.1	2.4	4.1	4.3