Business Acquisitions

12 Months Ended

Dec. 31, 2011

Business Acquisitions [Abstract]

Business Acquisition

Business Acquisitions

In July 2011, the Company acquired Aerius Photonics, LLC (“Aerius”), a leading provider of short-wavelength infrared detectors and advanced laser components, for approximately $27.0 million in cash. The Company has recorded $8.8 million of identifiable intangible assets and $16.5 million of goodwill, in conjunction with this acquisition, which has been recorded in the Company’s Thermal Vision and Measurement business segment. Goodwill consists largely of the Company’s ability to enhance its component offerings and expand its OEM customer base, to augment the Company’s multi-spectral systems development capabilities, and to minimize the cost of commercializing Aerius detectors and laser components into the Company’s current and future product offerings.

Note 18.    Business Acquisitions—(Continued)

The preliminary allocation of the purchase price is as follows (in thousands):

Cash acquired	$	3,629
Accounts receivable, net	2,567
Inventories	49
Property and equipment	851
Other assets	132
Liabilities	(5,474		)
Net tangible assets	1,754
Identifiable intangible assets	8,830
Goodwill	16,452
Purchase price	$	27,036

Certain tax attributes and the allocation of goodwill are pending final valuation and are expected to be finalized by June 30, 2012. None of the goodwill recognized is deductible for income tax purposes.

The identifiable intangible assets and the estimated useful life of each are as follows (in thousands):

	Estimated Useful Life	Amount
Customer Relationships	7 years	$	780
Patented/Proprietary Technology	7 years	6,500
Backlog & Other	2 years	1,550
		$	8,830

Additionally in 2011, the Company acquired all of the outstanding stock of Tacktick Ltd. and Belamarin OY for approximately $5.1 million in cash. Purchase price allocations recorded in 2011 in connection with these acquisitions in the Raymarine business segment include identifiable intangible assets of approximately $1.1 million and goodwill of approximately $1.5 million.

In May 2010, the Company acquired all of the outstanding stock of Raymarine Holdings Limited (“Raymarine”), a leading provider of a comprehensive range of electronic equipment for recreational boating and light commercial marine markets, for approximately $177.8 million in cash.

In October 2010, the Company acquired all of the outstanding stock of ICx, a leading provider of integrated advanced sensing technologies for homeland security, force protection and critical infrastructure applications, for approximately $264.2 million in cash. In addition, the Company assumed certain outstanding ICx stock options and unvested restricted stock units. As a result, 331,386 shares of the Company’s common stock valued at $2.1 million are issuable by the Company upon exercise of the ICx stock options and vesting of ICx restricted stock units.

The Company has recorded $57.4 million of identifiable intangible assets and $111.0 million of goodwill, in conjunction with the ICx acquisition, which had been recorded in the Company’s Surveillance, Detection and Integrated Systems business segment. Identifiable intangible assets and goodwill by business segment is as follows (in thousands):

	Identifiable Intangible Assets		Goodwill
Surveillance	$	25,730	$	52,665
Detection	16,750		38,162
Integrated Systems	12,080		20,129
Thermal Vision and Measurement	1,130		—
Discontinued Operations	1,740		—
	$	57,430	$	110,956

Note 18.    Business Acquisitions—(Continued)

The final allocation of the purchase price is as follows (in thousands):

Cash acquired	$	36,197
Accounts receivable, net	24,405
Inventories	41,982
Property and equipment	9,016
Other assets	13,947
Liabilities	(41,661		)
Net tangible assets	83,886
Identifiable intangible assets	57,430
Goodwill	110,956
Deferred taxes, net	14,069
Purchase price	$	266,341

None of the goodwill recognized is deductible for income tax purposes.

The operating results of these acquisitions are included in the Company’s results of operations since their respective dates of acquisition.

These acquisitions are not significant, either individually or in the aggregate, as defined in Regulation S-X of the Securities and Exchange Commission, compared to the Company’s overall financial position.