Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible assets

v2.4.1.9
Goodwill and Intangible assets
6 Months Ended
Mar. 31, 2015
Goodwill and Intangible assets  
Goodwill and Intangible Assets

 

5. Goodwill and Intangible Assets

 

The changes in goodwill for the six months ended March 31, 2015 are as follows:

 

(Amounts in thousands)

 

Health Services

 

Human Services

 

Total

 

Balance as of September 30, 2014

 

$

124,920

 

$

45,706

 

$

170,626

 

Foreign currency translation

 

(6,210

)

(2,202

)

(8,412

)

Balance as of March 31, 2015

 

$

118,710

 

$

43,504

 

$

162,214

 

 

The following table sets forth the components of intangible assets:

 

 

 

As of March 31, 2015

 

As of September 30, 2014

 

(Amounts in thousands)

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

Cost

 

Accumulated
Amortization

 

Intangible
Assets, net

 

Customer contracts and relationships

 

$

40,027 

 

$

9,545 

 

$

30,482 

 

$

42,403 

 

$

7,821 

 

$

34,582 

 

Technology based intangible assets

 

8,828 

 

7,095 

 

1,733 

 

9,295 

 

6,910 

 

2,385 

 

Trademarks and trade names

 

4,306 

 

2,490 

 

1,816 

 

4,374 

 

2,102 

 

2,272 

 

Total

 

$

53,161 

 

$

19,130 

 

$

34,031 

 

$

56,072 

 

$

16,833 

 

$

39,239 

 

 

Our intangible assets at March 31, 2015 had a weighted average remaining life of 11.5 years, comprising 12.5 years for customer contracts and relationships, 2.9 years for technology-based intangible assets and 2.5 years for the trademarks and trade names. Amortization expense for the six months ended March 31, 2015 and 2014 was $2.9 million and $2.8 million, respectively. Estimated future amortization expense excluding the effects of the Acentia and Remploy acquisitions is as follows (in thousands):

 

Six months ended September 30, 2015

 

$

2,758 

 

Year ended September 30, 2016

 

5,354 

 

Year ended September 30, 2017

 

4,955 

 

Year ended September 30, 2018

 

3,820 

 

Year ended September 30, 2019

 

2,936 

 

Year ended September 30, 2020

 

1,832 

 

 

Amortization expenses related to the Acentia and Remploy acquisitions are not included above. The additional expense is anticipated to be approximately $6 million per year.