Goodwill and Intangibles

9 Months Ended

Jul. 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(4)		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)		–
Goodwill additions	5,283		31,201		–		1,945		38,429
Currency translation adjustments(2)	9,511		–		–		–		9,511
Goodwill adjustments(3)	9,792		35		–		–		9,827
Balance at July 1, 2012	$	400,926	$	158,762	$	17,710	$	49,783	$	627,181

(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)Adjustments resulted from contingent earn-out paymentsrelated to acquisitions completed prior to fiscal 2010.

(4)Gross amount of goodwill for the Engineering and Architecture Services segment was $122.7 million for both July 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:

	July 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	$	5,365	$	(4,331)	$	5,175	$	(3,430)
Client relations	5.8	97,364		(27,533)		81,619		(17,951)
Backlog	1.3	59,116		(51,421)		52,938		(39,452)
Technology and trade names	3.9	2,949		(1,020)		2,684		(530)
Total		$	164,794	$	(84,305)	$	142,416	$	(61,363)

In the first nine months of fiscal 2012, the increases in gross amounts are attributable to the fiscal 2012 acquisitions described in Note 3, “Mergers and Acquisitions” and, to a lesser extent, foreign currency translation adjustments.  Amortization expense for these intangible assets for the three and nine months ended July 1, 2012 was $6.9 million and $22.1 million, respectively, compared to $7.0 million and $20.7 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	$	7,470
2013	17,554
2014	14,016
2015	12,975
2016	11,400
Beyond	17,074
Total	$	80,489