Goodwill And Other Intangible Assets

6 Months Ended

Jul. 02, 2011

Goodwill And Other Intangible Assets

3. Goodwill and Other Intangible Assets

The consolidated financial statements include the identifiable intangible assets and goodwill resulting from acquisitions of businesses completed prior to 2010. The following table presents the changes in the carrying amount of goodwill by reportable operating segment during the six months ended July 2, 2011 (in thousands):

		Global
	LXE	Tracking	Aviation	Total
Balance as of December 31, 2010	$ 1,937	23,429	35,108	60,474

Foreign currency translation adjustment	80	0	0	80

Balance as of July 2, 2011	$ 2,017	23,429	35,108	60,554

The Company had $21.0 million of accumulated impairment losses recorded on LXE's goodwill as of July 2, 2011.

The following table presents the gross carrying amounts and accumulated amortization, in total and by major intangible asset class, for the Company's intangible assets subject to amortization as of July 2, 2011 and December 31, 2010 (in thousands):

		As of July 2, 2011
	Gross		Net
	Carrying	Accumulated	Carrying
	Amount	Amortization	Amount

Developed technology	$ 42,115	21,905	20,210
Customer relationships	19,305	5,941	13,364
Trade names and trademarks	6,332	2,318	4,014
Other	2,440	2,346	94

	$ 70,192	32,510	37,682

		As of December 31, 2010
	Gross		Net
	Carrying	Accumulated	Carrying
	Amount	Amortization	Amount

Developed technology	$ 41,525	19,039	22,486
Customer relationships	19,164	4,787	14,377
Trade names and trademarks	6,281	1,961	4,320
Other	2,428	2,292	136

	$ 69,398	28,079	41,319

Amortization expense related to these intangible assets for the three months and six months ended July 2, 2011 was $1.9 million and $3.9 million, respectively, and for the three months and six months ended July 3, 2010 was $2.1 million and $4.1 million, respectively. Expected amortization expense for the remainder of 2011 and for each of the five succeeding years is as follows: 2011 - $3.9 million, 2012 - $8.0 million, 2013 - $7.4 million, 2014 - $3.9 million, 2015 - $3.7 million and 2016 - $3.5 million.

Amortization expense for intangible assets and other items included in cost of sales, selling, general and administrative expense, and in research and development expenses for the three and six months ended July 2, 2011 and July 3, 2010 are summarized in the following table (in millions of dollars):


	Three Months Ended		Six Months Ended
	July 2	July 3	July 2	July 3
	2011	2010	2011	2010


Cost of sales	$ 1.0	0.9	2.1	1.9
Selling, general and administrative	1.0	1.4	1.9	2.3
Research and development	0.1	0.1	0.1	0.1
Total amortization expense	$ 2.1	2.4	4.1	4.3

- 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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EMS TECHNOLOGIES INC 10-Q/A