Goodwill and Intangible Assets

3 Months Ended

Dec. 29, 2013

4. Goodwill and Intangible Assets

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

	ECS		TSS		RCM		Total
	(in thousands)

Balance at September 29, 2013	$	353,608	$	177,579	$	191,605	$	722,792
Goodwill additions	10,993		–		314		11,307
Foreign exchange impact	(10,604)		(104)		(3,864)		(14,572)
Balance at December 29, 2013	$	353,997	$	177,475	$	188,055	$	719,527

Goodwill additions are primarily attributable to an acquisition completed in the first quarter of fiscal 2014. Substantially all of the goodwill additions are not deductible for income tax purposes. Foreign exchange impact relates to our foreign subsidiaries with functional currencies that are different than our reporting currency. The gross amounts of goodwill for ECS were $411.5 million and $411.1 million at December 29, 2013 and September 29, 2013, respectively, excluding $57.5 million of accumulated impairment.

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 29, 2013					September 29, 2013
	Weighted- Average Remaining Life (in Years)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
	($ in thousands)

Non-compete agreements	2.6	$	2,149	$	(1,268)	$	6,160	$	(5,247)
Client relations	4.3	121,335		(47,567)		128,839		(49,189)
Backlog	0.5	11,336		(9,191)		68,968		(64,675)
Technology and trade names	2.7	3,367		(1,475)		4,204		(2,131)
Total		$	138,187	$	(59,501)	$	208,171	$	(121,242)

The gross amount and accumulated amortization for acquired identifiable intangible assets decreased due to a write-down of fully amortized assets in the first quarter of fiscal 2014. The recent acquisition added $2.2 million of identifiable intangible assets, partially offset by $1.8 million of foreign currency translation adjustments. Amortization expense for the identifiable intangible assets for the first quarters of fiscal 2014 and 2013 was $8.6 million and $5.6 million, respectively. Estimated amortization expense for the remainder of fiscal 2014 and succeeding years is as follows:

	Amount
	(in thousands)

2014	$	18,914
2015	19,563
2016	15,637
2017	13,346
2018	6,289
Beyond	4,937
Total	$	78,686

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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