Goodwill, Intangible Assets and Impairment Charges

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Impairment Charges

6. Goodwill, Intangible Assets and Impairment Charges

Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2022 (in thousands):

	Amount
Balance at beginning of year	$	479,500
Goodwill from current year acquisitions		9,863
Effect of foreign exchange rate changes		(10,466	)
Balance at end of year	$	478,897

Goodwill by reportable segment as of December 31, 2022 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	208,387		$	167,891		$	253,848		$	630,126
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	105,926		$	136,169		$	236,802		$	478,897

Goodwill by reportable segment as of December 31, 2021 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	214,564		$	160,675		$	255,490		$	630,729
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	112,103		$	128,953		$	238,444		$	479,500

Intangible Assets

Intangible assets as of December 31, 2022 and 2021, respectively, are summarized as follows (dollar amounts in thousands):

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	184,589	$	(132,350	)	$	52,239		10.1
Customer relationships		222,173		(121,527	)		100,646		15.0
Trademarks and trade names		23,311		(13,457	)		9,854		10.0
Amortizable intangible assets		430,073		(267,334	)		162,739		13.2
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	443,100	$	(267,334	)	$	175,766

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	189,609	$	(122,130	)	$	67,479		10.7
Customer relationships		228,656		(104,386	)		124,270		15.5
Customer backlog		6,862		(2,254	)		4,608		0.7
Trademarks and trade names		23,976		(12,371	)		11,605		10.5
Amortizable intangible assets		449,103		(241,141	)		207,962		13.3
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	462,130	$	(241,141	)	$	220,989

All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Amortization expense – cost of revenue	$	13,270	$	13,288	$	11,123
Amortization expense – operating expenses		26,338		16,577		13,970
Total amortization expense	$	39,608	$	29,865	$	25,093

Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):

Year Ending December 31,	Cost of Revenue		Operating Expenses		Total
2023	$	12,065	$	20,322	$	32,387
2024		9,805		17,053		26,858
2025		8,312		14,428		22,740
2026		6,949		12,275		19,224
2027		4,206		9,900		14,106
Thereafter		10,902		36,522		47,424
Total	$	52,239	$	110,500	$	162,739

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during 2022, 2021, or 2020.