Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 28, 2013

Summary of Changes in Goodwill

The following table summarizes changes in goodwill for the six months ended June 28, 2013 (in thousands):

	June 28, 2013
Balance at beginning of the period	$	44,578
Goodwill acquired from NDS acquisition		28,936
Balance at end of period	$	73,514

Goodwill by Reportable Segment

Goodwill acquired from the NDS acquisition is reflected in the Precision Technologies segment. Goodwill by reportable segment as of June 28, 2013 is as follows (in thousands):

	Reportable Segment						Total
	Laser Products			Precision Technologies
Goodwill	$	84,592		$	120,576		$	205,168
Accumulated impairment of goodwill		(54,099	)		(77,555	)		(131,654	)
Total	$	30,493		$	43,021		$	73,514

Goodwill by reportable segment as of December 31, 2012, as restated to conform to the current period segment presentation, is as follows (in thousands):

	Reportable Segment						Total
	Laser Products			Precision Technologies
Goodwill	$	84,592		$	91,640		$	176,232
Accumulated impairment of goodwill		(54,099	)		(77,555	)		(131,654	)
Total	$	30,493		$	14,085		$	44,578

Intangible Assets

Intangible assets as of June 28, 2013 and December 31, 2012, respectively, are summarized as follows (in thousands):

	June 28, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and acquired technologies	$	67,859	$	(53,000	)	$	14,859	$	61,667	$	(50,904	)	$	10,763
Customer relationships		54,582		(21,319	)		33,263		33,245		(18,981	)		14,264
Customer backlog		3,598		(3,366	)		232		2,355		(2,355	)		—
Trademarks, trade names and other		13,232		(4,082	)		9,150		5,780		(3,814	)		1,966
Amortizable intangible assets		139,271		(81,767	)		57,504		103,047		(76,054	)		26,993
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	152,298	$	(81,767	)	$	70,531	$	116,074	$	(76,054	)	$	40,020

Amortization Expense of Intangible Assets

Amortization expense, by classification, in the consolidated statements of operations is summarized as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 28, 2013		June 29, 2012		June 28, 2013		June 29, 2012
Amortization expense – cost of sales	$	1,343	$	791	$	2,594	$	1,582
Amortization expense – operating expenses		1,617		663		3,853		1,325
Total amortization expense	$	2,960	$	1,454	$	6,447	$	2,907

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years and thereafter as of June 28, 2013, is as follows (in thousands):

Year Ending December 31,	Cost of Sales		Operating Expenses		Total
2013 (remainder of year)	$	2,686	$	3,211	$	5,897
2014		4,953		5,914		10,867
2015		3,310		5,343		8,653
2016		1,965		4,969		6,934
2017		1,573		4,654		6,227
Thereafter		372		18,554		18,926
Total	$	14,859	$	42,645	$	57,504