Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 27, 2014

Summary of Changes in Goodwill

The following table summarizes changes in goodwill for the six months ended June 27, 2014 (in thousands):

Balance at beginning of the period	$	71,156
Goodwill acquired from JADAK acquisition		44,428
Balance at end of period	$	115,584

Goodwill by Reportable Segment

Technologies segment. Goodwill by reportable segment as of June 27, 2014 is as follows (in thousands):

	Reportable Segment									Total
	Laser Products			Medical Technologies			Precision Motion
Goodwill	$	132,954		$	87,993		$	26,291		$	247,238
Accumulated impairment of goodwill		(102,461	)		(12,147	)		(17,046	)		(131,654	)
Total	$	30,493		$	75,846		$	9,245		$	115,584

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 June 27, 2014 and December 31, 2013, respectively, are summarized as follows (in thousands):

	June 27, 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	$	79,635	$	(59,468	)	$	20,167	$	68,500	$	(56,327	)	$	12,173
Customer relationships		79,232		(27,869	)		51,363		55,585		(24,340	)		31,245
Customer backlog		3,078		(1,872	)		1,206		1,269		(1,269	)		—
Non-compete covenant		1,830		(135	)		1,695		—		—			—
Trademarks and trade names		15,559		(4,993	)		10,566		13,378		(4,530	)		8,848
Amortizable intangible assets		179,334		(94,337	)		84,997		138,732		(86,466	)		52,266
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	192,361	$	(94,337	)	$	98,024	$	151,759	$	(86,466	)	$	65,293

Amortization Expense of Intangible Assets

Amortization expense is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Amortization expense – cost of sales	$	1,614	$	1,343	$	2,915	$	2,594
Amortization expense – operating expenses		2,876		1,617		4,620		3,853
Total amortization expense	$	4,490	$	2,960	$	7,535	$	6,447

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years and thereafter as of June 27, 2014 is as follows (in thousands):

Year Ending December 31,	Cost of Sales		Operating Expenses		Total
2014 (remainder of year)	$	3,228	$	5,645	$	8,873
2015		4,787		9,460		14,247
2016		3,376		9,227		12,603
2017		2,883		8,265		11,148
2018		1,350		7,383		8,733
Thereafter		4,543		24,850		29,393
Total	$	20,167	$	64,830	$	84,997