Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v2.4.0.6
Goodwill and Intangible Assets
9 Months Ended
Jun. 30, 2012
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

10. Goodwill and Intangible Assets

 

The changes in goodwill for the nine months ended June 30, 2012 are as follows (in thousands):

 

 

 

Health Services

 

Human Services

 

Total

 

Balance as of September 30, 2011

 

$

43,242

 

$

28,081

 

$

71,323

 

Acquisition of PSI

 

22,223

 

10,482

 

32,705

 

Foreign currency translation

 

57

 

612

 

669

 

Balance as of June 30, 2012

 

$

65,522

 

$

39,175

 

$

104,697

 

 

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

 

 

 

As of June 30, 2012

 

As of September 30, 2011

 

 

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

20,672

 

$

2,326

 

$

18,346

 

$

3,454

 

$

1,513

 

$

1,941

 

Technology-based intangible assets

 

8,954

 

4,593

 

4,361

 

7,146

 

4,097

 

3,049

 

Trademark

 

4,524

 

279

 

4,245

 

620

 

102

 

518

 

Non-compete arrangements

 

244

 

146

 

98

 

242

 

99

 

143

 

Total

 

$

34,394

 

$

7,344

 

$

27,050

 

$

11,462

 

$

5,811

 

$

5,651

 

 

The intangible assets include $3.4 million of fully-amortized technology-based assets still in use by the Company. The Company’s intangible assets have a weighted average remaining life of 6.4 years, comprising 3.8 years for technology-based intangible assets, 7.3 years for customer contracts and relationships, 5.1 years for the trademark, and 1.6 years for non-compete arrangements. Amortization expense for the three and nine months ended June 30, 2012 was $0.8 million and $1.4 million. Future amortization expense is estimated as follows (in thousands):

 

Three months ended September 30, 2012

 

$

1,276

 

Year ended September 30, 2013

 

4,918

 

Year ended September 30, 2014

 

3,894

 

Year ended September 30, 2015

 

3,873

 

Year ended September 30, 2016

 

3,873

 

Year ended September 30, 2017

 

3,481

 

Thereafter

 

5,735

 

Total

 

$

27,050