Goodwill, Net Intangibles and Other Noncurrent Assets

9 Months Ended

Dec. 31, 2015

Goodwill and Deferred Charges and Other Non-Current Assets

Goodwill, Net Intangibles and Other Noncurrent Assets

Changes in goodwill by segment were as follows:



	Flight Systems Group		Defense Systems Group		Space Systems Group			Total
	As Restated		As Restated		As Restated			As Restated
Balance, March 31, 2014	$	530,869	$	363,247	$	145,647		$	1,039,763
Merger	266,657		—		590,135			856,792
Impairment	—		—		(34,300		)	(34,300		)
Balance, March 31, 2015	$	797,526	$	363,247	$	701,482		$	1,862,255
Measurement period adjustments	125,465		—		(159,354		)	(33,889		)
Balance, December 31, 2015	$	922,991	$	363,247	$	542,128		$	1,828,366

The results of the Company's annual goodwill impairment test in fiscal 2015 indicated that the net book value of Space Systems Group's, Space Components division exceeded the implied fair market value. The fair value of the reporting unit was determined using both an income and market approach. The value estimated using a discounted cash flow model was weighted against the estimated value derived from the guideline company market approach method. This market approach method estimated the price reasonably expected to be realized from the sale of the business based on comparable companies. As the net book value of the division exceeded fair market value, the second step analysis was performed and the fair value of goodwill was determined based on the allocation of the reporting unit's assets, in a manner similar to purchase price allocation. As a result of this second step, the Company recorded an impairment of $34,300 in the fourth quarter of fiscal 2015. The impairment was primarily driven by a reduction in near-term estimated cash flows compared to the prior year forecast, resulting from, among other things, government budget constraints and increased competitive pressures in the satellite and spacecraft manufacturing market. Goodwill recorded within Space Systems Group is presented net of accumulated impairment losses totaling $142,800.

Goodwill recorded within Defense Systems Group is presented net of accumulated impairment losses totaling $3,700 (see Note 2-"Restatement", for further discussion).

Other noncurrent assets consisted of the following:



	December 31, 2015		March 31, 2015
	As Restated		As Restated
Parts inventory	$	10,303	$	9,973
Environmental remediation receivable	15,145		23,771
Derivative contracts	1,105		4,105
Tax refund receivable	42,555		38,392
Other noncurrent assets	70,354		66,220
Total other noncurrent assets	$	139,462	$	142,461

Net intangibles consisted of the following amortizing intangibles:



	December 31, 2015							March 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Total		Gross Carrying Amount		Accumulated Amortization			Total
Contract Backlog	$	179,000	$	(36,696	)	$	142,304	$	164,000	$	(6,167	)	$	157,833
Patented technology	11,018		(6,206		)	4,812		10,700		(5,350		)	5,350
Customer relationships and other	24,294		(24,254		)	40		24,294		(22,270		)	2,024
Net intangibles	$	214,312	$	(67,156	)	$	147,156	$	198,994	$	(33,787	)	$	165,207

The contract backlog asset in the table above is being amortized as underlying costs are recognized under the contract. The other assets in the table above are being amortized using a straight-line method. The weighted-average remaining period of amortization of total net intangibles above is 2.9 years. Amortization expense related to these assets was $33,371 in the 2015 transition period, $9,263 in fiscal 2015 and $3,112 in fiscal 2014.

Scheduled amortization is as follows:



	Contract Backlog		Patents and Customer Relationships		Total
2016	$	42,495	$	1,220	$	43,715
2017	41,005		1,180		42,185
2018	33,045		1,120		34,165
2019	19,184		1,072		20,256
2020	6,575		260		6,835
Total	$	142,304	$	4,852	$	147,156

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. Also includes disclosure of the nature of deferred charges and other non-current assets, including data and tables.

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