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Business Acquisitions, Goodwill and Intangible Assets
9 Months Ended
Jun. 30, 2014
Business Acquisitions, Goodwill and Intangible Assets  
Business Acquisitions, Goodwill and Intangible Assets

4.              Business Acquisitions, Goodwill and Intangible Assets

 

The Company obtained control of an unconsolidated joint venture that resulted in its consolidation during the nine months ended June 30, 2014, as further discussed in Note 6. No other business acquisitions occurred during the nine months ended June 30, 2014.

 

At the time of acquisition, the Company preliminarily estimates the amount of the identifiable intangible assets acquired based upon historical valuations of similar acquisitions and the facts and circumstances available at the time. The Company determines the final value of the identifiable intangible assets as soon as information is available, but not more than 12 months from the date of acquisition. Post-acquisition adjustments primarily relate to project related liabilities.

 

The changes in the carrying value of goodwill by reportable segment for the nine months ended June 30, 2014 and 2013 were as follows:

 

 

 

September 30,
2013

 

Post-
Acquisition
Adjustments

 

Foreign
Exchange
Impact

 

Acquired

 

June 30, 2014

 

 

 

(in millions)

 

Professional Technical Services

 

$

1,645.0

 

$

5.0

 

$

0.4

 

$

79.2

 

$

1,729.6

 

Management Support Services

 

166.8

 

 

 

 

166.8

 

Total

 

$

1,811.8

 

$

5.0

 

$

0.4

 

$

79.2

 

$

1,896.4

 

 

 

 

September 30,
2012

 

Post-
Acquisition
Adjustments

 

Foreign
Exchange
Impact

 

Acquired

 

June 30, 2013

 

 

 

(in millions)

 

Professional Technical Services

 

$

1,608.6

 

$

 

$

(43.4

)

$

65.3

 

$

1,630.5

 

Management Support Services

 

166.8

 

 

 

 

166.8

 

Total

 

$

1,775.4

 

$

 

$

(43.4

)

$

65.3

 

$

1,797.3

 

 

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of June 30, 2014 and September 30, 2013, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:

 

 

 

June 30, 2014

 

September 30, 2013

 

 

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Gross
Amount

 

Accumulated
Amortization

 

Intangible
Assets, Net

 

Amortization
Period

 

 

 

(in millions)

 

(years)

 

Backlog

 

$

104.3

 

$

(95.0

)

$

9.3

 

$

94.9

 

$

(89.4

)

$

5.5

 

1 – 5

 

Customer relationships

 

158.6

 

(81.2

)

77.4

 

147.1

 

(69.5

)

77.6

 

10

 

Trademark / tradename

 

7.8

 

(7.8

)

 

7.8

 

(7.8

)

 

2

 

Total

 

$

270.7

 

$

(184.0

)

$

86.7

 

$

249.8

 

$

(166.7

)

$

83.1

 

 

 

 

Amortization expense of acquired intangible assets included within cost of revenue was $17.3 million and $16.1 million for the nine months ended June 30, 2014 and 2013, respectively. The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2014 and for the succeeding years:

 

Fiscal Year

 

(in millions)

 

2014 (three months remaining)

 

$

5.7

 

2015

 

21.7

 

2016

 

15.5

 

2017

 

13.0

 

2018

 

9.7

 

Thereafter

 

21.1

 

Total

 

$

86.7