Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2013

The following table summarizes changes in goodwill for the nine months ended September 27, 2013 (in thousands):


	September 27, 2013
Balance at beginning of the period	$	44,578
Goodwill acquired from NDS acquisition		26,509

Balance at end of period	$	71,087

Goodwill by Reportable Segment

Goodwill acquired from the NDS acquisition is reflected in the Precision Technologies segment. Goodwill by reportable segment as of September 27, 2013 is as follows (in thousands):


	Reportable Segment						Total
	Laser Products			Precision Technologies			Total
Goodwill	$	84,592		$	118,149		$	202,741
Accumulated impairment of goodwill		(54,099	)		(77,555	)		(131,654	)

Total	$	30,493		$	40,594		$	71,087

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			Total
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 September 27, 2013 and December 31, 2012, respectively, are summarized as follows (in thousands):


	September 27, 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	$	68,294	$	(54,778	)	$	13,516	$	61,667	$	(50,904	)	$	10,763
Customer relationships		55,517		(22,911	)		32,606		33,245		(18,981	)		14,264
Customer backlog		3,623		(3,516	)		107		2,355		(2,355	)		—
Trademarks, trade names and other		13,331		(4,322	)		9,009		5,780		(3,814	)		1,966

Amortizable intangible assets		140,765		(85,527	)		55,238		103,047		(76,054	)		26,993

Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027

Totals	$	153,792	$	(85,527	)	$	68,265	$	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				Nine Months Ended
	September 27, 2013		September 28, 2012		September 27, 2013		September 28, 2012
Amortization expense – cost of sales	$	1,343	$	791	$	3,937	$	2,373
Amortization expense – operating expenses		1,772		663		5,625		1,988

Total amortization expense	$	3,115	$	1,454	$	9,562	$	4,361

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years and thereafter as of September 27, 2013, is as follows (in thousands):


Year Ending December 31,	Cost of Sales		Operating Expenses		Total
2013 (remainder of year)	$	1,343	$	1,645	$	2,988
2014		4,953		6,041		10,994
2015		3,310		5,444		8,754
2016		1,965		5,050		7,015
2017		1,573		4,720		6,293
Thereafter		372		18,822		19,194

Total	$	13,516	$	41,722	$	55,238