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Goodwill and Intangibles
6 Months Ended
Apr. 01, 2012
Goodwill and Intangibles  
Goodwill and Intangibles

4.                                      Goodwill and Intangibles

 

The following table summarizes the changes in the carrying value of goodwill:

 

 

 

Engineering and
Consulting
Services

 

Technical
Support
Services

 

Engineering
and
Architecture
Services 
(3)

 

Remediation
and
Construction
Management

 

Total

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at October 2, 2011

 

$

405,678

 

 

$

82,091

 

 

$

17,710

 

 

$

63,935

 

 

$

569,414

 

 

Inter-segment transfers(1)

 

(29,338

)

 

45,435

 

 

 

 

(16,097

)

 

 

 

Currency translation adjustments(2)

 

14,727

 

 

 

 

 

 

 

 

14,727

 

 

Balance at April 1, 2012

 

$

391,067

 

 

$

127,526

 

 

$

17,710

 

 

$

47,838

 

 

$

584,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)                Transfers resulted from a realignment of certain operating activities in our reportable segments (See Note 9, “Reportable Segments” for more information).

(2)                Currency translation adjustments relate to our foreign subsidiaries with functional currencies different than our reporting currency.

(3)                Gross amount of goodwill for the Engineering and Architecture Services segment was $122.7 million for both April 1, 2012, and October 2, 2011.  For both periods, accumulated impairment losses for this segment were $105 million, reflecting impairment charges in fiscal 2005. There were no impairment losses in the other reportable segments.

 

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

 

 

 

April 1, 2012

 

October 2, 2011

 

 

 

Weighted-
Average
Remaining Life
(in Years)

 

Gross
Amount

 

Accumulated
Amortization

 

Gross
Amount

 

Accumulated
Amortization

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-compete agreements

 

1.5

 

$

5,329

 

 

$

(4,086

)

 

$

5,175

 

 

$

(3,430

)

 

Client relations

 

5.8

 

84,623

 

 

(24,652

)

 

81,619

 

 

(17,951

)

 

Backlog

 

0.5

 

54,220

 

 

(48,502

)

 

52,938

 

 

(39,452

)

 

Technology and trade names

 

4.2

 

2,816

 

 

(873

)

 

2,684

 

 

(530

)

 

Total

 

 

 

$

146,988

 

 

$

(78,113

)

 

$

142,416

 

 

$

(61,363

)

 

 

In the first half of fiscal 2012, gross amounts increased due to foreign currency translation adjustments. Amortization expense for these intangible assets for the three and six months ended April 1, 2012 were $6.9 million and $15.2 million, respectively, compared to $6.9 million and $13.7 million for the same periods last year. Estimated amortization expense for the remainder of fiscal 2012 and succeeding years is as follows:

 

 

 

Amount

 

 

 

(in thousands)

 

 

 

 

 

 

2012

 

$

12,321

 

 

2013

 

12,509

 

 

2014

 

11,399

 

 

2015

 

11,101

 

 

2016

 

9,552

 

 

Beyond

 

11,993

 

 

Total

 

$

68,875