Goodwill And Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets, Net [Abstract]

Goodwill And Other Intangible Assets, Net

Note 11 - GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Composition:


	Weighted average
	useful lives		December 31,
Identifiable intangible assets			2011		2010
Original cost:
Technology (1)		12	$	254,668	$	248,868
Customer relations (2)		6		201,346		200,336
Trade marks and other (3)		14		64,872		64,442
				520,886		513,646
Accumulated amortization:
Technology				120,988		98,814
Customer relations				115,284		86,166
Trademarks and other				20,868		15,073
				257,140		200,053
Amortized cost			$	263,746	$	313,593

(1)

The technology acquired consists of the following major items:

During 2011, the Company invested $3,800 in technology related to cyber security and warfare, following the acquisition of C4 (see Note 1(D)(4)). During 2010, the Company invested $13,800 in aerospace technology related to the M7 acquisition (See Note 1(E)(4)) and $28,200 in armored vehicles electro-optics technologies related to the acquisition of Soltam, ITL and Saymar (See Note 1(E)(2)). During 2009, the Company invested $7,400 in technology related to simulation and debriefing systems and $8,200 in technology for broadband communications (See Note 1(F)). An amount of $70,300 was allocated to technology related to communication equipment and C4ISR, in connection with the acquisition of Tadiran's shares in 2005 - 2007.

(2)

Includes mainly customer relations resulting from the acquisition of Tadiran ($137,300) and FTL ($9,000) in 2007.

(3)

Includes trademarks in the amount of $8,000 acquired in the merger with Elop in 2000, and an amount of $33,200 that was allocated to trademarks resulting mainly from the acquisition of Tadiran in 2005 – 2007.

Amortization expenses amounted to $56,952, $47,729 and $42,601 for the years ended December 31, 2011, 2010 and 2009, respectively.

The estimated aggregate amortization expense for each of the five succeeding fiscal years:

2012	$	49,620
2013		46,117
2014		43,688
2015		37,099
2016		28,043
2017 and after		59,181

Changes in goodwill, during 2011 are as follows:


	2011
Balance, at January 1, (1)	$	486,046
Adjustment in respect of previous acquisitions (2)		994
Net translation differences (3)		(725	)

Goodwill acquired during the year:
Elite		5,384
C4 Security		7,627
Balance, at December 31,	$	499,326

(1)

Including an adjustment of approximately $3000 related to a 2010 acquisition.

(2)

In 2011, the Company adjusted provisions related to an acquisition made during 2010.

(3)

Foreign currency translation differences resulting from goodwill allocated to reporting units, whose functional currency has been determined to be other than the U.S. dollar.

- 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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