Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v2.4.0.6
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets
(6)  Goodwill and Intangible Assets

Changes in goodwill for the years ended December 31, 2011 and 2010 are as follows (in thousands):

   
Supply Chain
Management
   
IT, Energy and
Management
Consulting
   
 
Infrastructure
   
 
Total
 
Balance as of December 31, 2009
  $ -     $ 13,287     $ 6,243     $ 19,530  
Increase from acquisition of Akimeka
    -        15,082       -       15,082  
Earn-out obligation
     -        1,400        270       1,670  
Balance as of December 31, 2010
    -       29,769       6,513       36,282  
Increase from acquisition of WBI
    61,169       -       -       61,169  
Earn-out obligation
     -        1,114        314       1,428  
Balance as of December 31, 2011
  $ 61,169     $ 30,883     $ 6,827     $ 98,879  

Under the terms of the ICRC and G&B acquisitions, additional consideration is due to the sellers if certain financial performance targets are achieved.  G&B achieved certain financial performance targets for the final earn-out period ended on March 31, 2011. This resulted in a $1.1 million earn-out, which was recorded as goodwill and paid to the seller in the second quarter of 2011.  ICRC achieved certain financial performance targets for the period ended December 31, 2011.  This resulted in a $314 thousand earn-out, which was recorded as goodwill and accrued expenses.  The earn-out will be paid to the sellers in the first quarter of 2012.
 
Intangible assets consist of the value of contract and customer-related intangible assets, acquired technologies and trade names acquired in the acquisitions of ICRC, G&B, Akimeka and WBI. Intangible assets with indefinite lives not subject to amortization consist of ICRC and G&B trade names of approximately $2.4 million as of December 31, 2011 and December 31, 2010.  The trade names acquired in the Akimeka and WBI acquisitions are being amortized over nine years. Amortization expense for the years ended December 31, 2011, 2010 and 2009 was approximately $7.9 million, $2.4 million and $1.8 million, respectively.

Intangible assets consisted of the following (in thousands):

 
December 31, 2011
 
Cost
   
Accumulated
Amortization
   
Net Intangible
Assets
 
Contract and customer-related
  $ 96,884     $ (12,987 )   $ 83,897  
Acquired technologies
    12,400       (642 )     11,758  
Trade names – amortizable
    9,170       (719 )     8,451  
Trade names – indefinite lived
    2,430        -        2,430  
  Total
  $ 120,884     $ (14,348 )   $ 106,536  
 
December 31, 2010
 
Cost
   
 
Accumulated
Amortization
   
Net Intangible
Assets
 
Contract-related
  $ 27,484     $ (6,417 )   $ 21,067  
Trade name – amortizable
    1,570       (64 )     1,506  
Trade names – indefinite lived
    2,430        -        2,430  
  Total
  $ 31,484     $ (6,481 )   $ 25,003  

Future expected amortization of intangible assets is as follows for the years ending December 31, (in thousands):

   
Amortization
 
2012
  $ 11,207  
2013
    10,075  
2014
    9,846  
2015
    9,567  
2016
    9,367  
Thereafter
    54,044  
  Total
  $ 104,106