Goodwill and Intangibles

9 Months Ended

Jul. 03, 2011

Goodwill and Intangibles

Goodwill and Intangibles

4.             Goodwill and Intangibles

The changes in the carrying value of goodwill by segment for the nine months ended July 3, 2011 were as follows:

	October 3, 2010		Goodwill Additions		Currency Translation Adjustments		Goodwill Adjustments		July 3, 2011
	(in thousands)
Engineering and consulting services	$	244,616	$	137,091	$	16,446	$	14,474	$	412,627
Technical support services	68,661		–		–		1,193		69,854
Engineering and architecture services	17,210		–		–		500		17,710
Remediation and construction management	63,935		–		–		–		63,935
Total	$	394,422	$	137,091	$	16,446	$	16,167	$	564,126

The goodwill additions are attributable to fiscal 2011 acquisitions described in Note 3, “Mergers and Acquisitions” and represent the value paid for the assembled workforce, the international geographic presence, and engineering and consulting expertise.  Substantially all of the goodwill additions are not deductible for income tax purposes.  The foreign currency translation adjustments relate to our Canadian 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 purchase price allocations related to the fiscal 2011 acquisitions are preliminary, and subject to adjustment based on the valuation and final determination of net assets acquired.  We do not believe that any adjustment will have a material effect on our consolidated results of operations.

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

	July 3, 2011						October 3, 2010
	Weighted- Average Remaining Life (in Years)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
	($ in thousands)
Non-compete agreements	1.9	$	5,407	$	(3,253	)	$	4,295	$	(2,177	)
Client relations	5.8	70,352		(16,105		)	41,020		(8,351		)
Backlog	1.0	49,896		(36,803		)	35,311		(24,329		)
Technology and trade names	5.1	2,641		(432		)	246		(20		)
Total		$	128,296	$	(56,593	)	$	80,872	$	(34,877	)

For the nine months ended July 3, 2011, the increases in gross amounts are attributable to fiscal 2011 acquisitions described in Note 3, “Mergers and Acquisitions” and, to a lesser extent, foreign currency translation adjustments. For the three and nine months ended July 3, 2011, amortization expense for these intangible assets was $7.0 million and $20.7 million, compared to $2.9 million and $8.9 million for the same periods last year, respectively. Estimated amortization expense for the remainder of fiscal 2011 and the succeeding years is as follows:

	Amount
	(in thousands)
2011	$	7,007
2012	21,015
2013	10,577
2014	9,591
2015	9,376
Beyond	14,137
Total	$	71,703