Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 28, 2014

Summary of Changes in Goodwill

The following table summarizes changes in goodwill for the three months ended March 28, 2014 (in thousands):

Balance at beginning of the period	$	71,156
Goodwill acquired from JADAK acquisition		44,026
Balance at end of period	$	115,182

Goodwill by Reportable Segment

Goodwill by reportable segment as of March 28, 2014 is as follows (in thousands):

	Reportable Segment									Total
	Laser Products			Medical Technologies			Precision Motion
Goodwill	$	132,954		$	87,591		$	26,291		$	246,836
Accumulated impairment of goodwill		(102,461	)		(12,147	)		(17,046	)		(131,654	)
Total	$	30,493		$	75,444		$	9,245		$	115,182

Goodwill by reportable segment as of December 31, 2013 is as follows (in thousands):

	Reportable Segment									Total
	Laser Products			Medical Technologies			Precision Motion
Goodwill	$	132,954		$	43,565		$	26,291		$	202,810
Accumulated impairment of goodwill		(102,461	)		(12,147	)		(17,046	)		(131,654	)
Total	$	30,493		$	31,418		$	9,245		$	71,156

Intangible Assets

Intangible assets as of March 28, 2014 and December 31, 2013, respectively, are summarized as follows (in thousands):

	March 28, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and acquired technologies	$	79,675	$	(57,674	)	$	22,001	$	68,500	$	(56,327	)	$	12,173
Customer relationships		79,737		(25,821	)		53,916		55,585		(24,340	)		31,245
Customer backlog		2,900		(1,346	)		1,554		1,269		(1,269	)		—
Non-compete covenant		1,487		(16	)		1,471		—		—			—
Trademarks and trade names		15,517		(4,723	)		10,794		13,378		(4,530	)		8,848
Amortizable intangible assets		179,316		(89,580	)		89,736		138,732		(86,466	)		52,266
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	192,343	$	(89,580	)	$	102,763	$	151,759	$	(86,466	)	$	65,293

Amortization Expense of Intangible Assets

Amortization expense is as follows (in thousands):

	Three Months Ended
	March 28, 2014		March 29, 2013
Amortization expense – cost of sales	$	1,301	$	1,251
Amortization expense – operating expenses		1,744		2,236
Total amortization expense	$	3,045	$	3,487

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years and thereafter as of March 28, 2014 is as follows (in thousands):

Year Ending December 31,	Cost of Sales		Operating Expenses		Total
2014 (remainder of year)	$	4,849	$	8,481	$	13,330
2015		4,804		9,292		14,096
2016		3,379		9,231		12,610
2017		2,890		8,255		11,145
2018		1,362		7,362		8,724
Thereafter		4,717		25,114		29,831
Total	$	22,001	$	67,735	$	89,736