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Goodwill and Intangibles
3 Months Ended
Dec. 30, 2012
Goodwill and Intangibles  
Goodwill and Intangibles

4.                                      Goodwill and Intangibles

 

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

 

 

 

ECS

 

TSS

 

RCM

 

Total

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2012(1) (2)

 

$

412,308

 

$

173,867

 

$

49,783

 

$

635,958

 

Goodwill additions

 

12,132

 

 

 

12,132

 

Currency translation adjustments(3)

 

(3,862)

 

 

 

(3,862)

 

Goodwill adjustments

 

 

(79)

 

 

(79)

 

Balance at December 30, 2012

 

$

420,578

 

$

173,788

 

$

49,783

 

$

644,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Prior-year amounts for ECS and TSS have been reclassified to conform to the current-year presentation (see Note 9, “Reportable Segments” for more information). As a result, the ECS revised amount reflects $9.2 million transferred in from EAS and $7.6 million transferred out to TSS. The TSS revised amount reflects $7.5 million transferred in from EAS and $7.6 million transferred in from ECS.

(2)

We recorded impairment charges of $105.0 million in fiscal 2005 and $0.9 million in fiscal 2012 in our former EAS segment.

(3)

Currency translation adjustments relate to our foreign subsidiaries with functional currencies that are different than our reporting currency.

 

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:

 

 

 

December 30, 2012

 

September 30, 2012

 

 

 

Weighted-
Average
Remaining Life
(in Years)

 

Gross
Amount

 

Accumulated
Amortization

 

Gross
Amount

 

Accumulated
Amortization

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-compete agreements

 

2.8

 

$

6,316

 

$

(4,938)

 

$

5,467

 

$

(4,685)

 

Client relations

 

5.3

 

107,439

 

(35,116)

 

99,096

 

(31,477)

 

Backlog

 

0.9

 

60,109

 

(56,863)

 

59,931

 

(55,908)

 

Technology and trade names

 

3.6

 

3,136

 

(1,393)

 

3,034

 

(1,227)

 

Total

 

 

 

$

177,000

 

$

(98,310)

 

$

167,528

 

$

(93,297)

 

 

In the first quarter of fiscal 2013, gross amounts for goodwill and intangible assets increased due to foreign currency translation adjustments and two immaterial acquisitions in the ECS segment.  Amortization expense for the intangible assets for the first quarters of fiscal 2013 and 2012 was $5.6 million and $8.3 million, respectively.  Estimated amortization expense for the remainder of fiscal 2013 and succeeding years is as follows:

 

 

 

Amount

 

 

 

(in thousands)

 

 

 

 

 

2013

 

$

14,717

 

2014

 

16,212

 

2015

 

15,180

 

2016

 

13,543

 

2017

 

11,134

 

Beyond

 

7,904

 

Total

 

$

78,690