Annual report pursuant to Section 13 and 15(d)

Goodwill and intangible assets

v2.4.0.8
Goodwill and intangible assets
12 Months Ended
Sep. 30, 2014
Goodwill and intangible assets  
Goodwill and intangible assets

7. Goodwill and intangible assets

        Changes in goodwill for the years ended September 30, 2014 and 2013 are as follows (in thousands):

                                                                                                                                                                                                               

 

 

Health Services

 

Human Services

 

Total

 

Balance as of September 30, 2012

 

$

63,517

 

$

48,515

 

$

112,032

 

Goodwill acquired with HML

 

 

58,316

 

 

 

 

58,316

 

Adjustment to goodwill acquired with PSI

 

 

65

 

 

64

 

 

129

 

Foreign currency translation

 

 

3,198

 

 

(1,808

)

 

1,390

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2013

 

 

125,096

 

 

46,771

 

 

171,867

 

Adjustment to goodwill acquired with HML

 

 

31

 

 

 

 

31

 

Foreign currency translation

 

 

(207

)

 

(1,065

)

 

(1,272

)

 

 

 

 

 

 

 

 

Balance as of September 30, 2014

 

$

124,920

 

$

45,706

 

$

170,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        There have been no impairment charges in our goodwill.

        The following table sets forth the components of intangible assets (in thousands):

                                                                                                                                                                                                               

 

 

As of September 30, 2014

 

As of September 30, 2013

 

 

 

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

 

Customer contracts and relationships

 

$

42,403 

 

$

7,821 

 

$

34,582 

 

$

39,243 

 

$

3,953 

 

$

35,290 

 

 

Technology-based intangible assets

 

 

9,295 

 

 

6,910 

 

 

2,385 

 

 

9,583 

 

 

5,974 

 

 

3,609 

 

 

Trademarks and trade names

 

 

4,374 

 

 

2,102 

 

 

2,272 

 

 

4,421 

 

 

1,303 

 

 

3,118 

 

 

Non-compete arrangements

 

 

 

 

 

 

 

 

243 

 

 

221 

 

 

22 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

56,072 

 

$

16,833 

 

$

39,239 

 

$

53,490 

 

$

11,451 

 

$

42,039 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        The intangible assets include $3.4 million of fully amortized technology-based assets still in use. Our intangible assets have a weighted average remaining life of 11.7 years, comprising 12.9 years for customer contracts and relationships, 3.2 years for technology-based intangible assets and 3.0 years for trademarks and trade names. Amortization expense for the years ended September 30, 2014, 2013 and 2012 was $5.9 million, $4.9 million and $2.7 million, respectively. Estimated future amortization expense is estimated as follows (in thousands):

                                                                                                                                                                                                               

Year ending September 30, 2015

 

$

5,875 

 

Year ending September 30, 2016

 

 

5,613 

 

Year ending September 30, 2017

 

 

5,214 

 

Year ending September 30, 2018

 

 

4,002 

 

Year ending September 30, 2019

 

 

3,042