Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 26, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

On September 24, 2014, we received a payment of $5.4 million, the full remaining amount held in an escrow account established upon the closing of the acquisition of NDS Surgical Imaging, LLC (“NDS”) in January 2013. The escrow recovery resulted from the Company’s claims for a breach of certain terms of the January 15, 2013 Securities Purchase Agreement for the acquisition of NDS. The escrow recovery was accounted for as a reduction to goodwill as the $5.4 million payment was clearly and directly related to the acquisition price. The following table summarizes changes in goodwill for the nine months ended September 26, 2014 (in thousands):

Balance at beginning of the period	$	71,156
Goodwill acquired from the JADAK acquisition		45,045
Recovery of escrow from the NDS acquisition		(5,418	)
Balance at end of period	$	110,783

Goodwill by Reportable Segment

Goodwill by reportable segment as of September 26, 2014 is as follows (in thousands):

	Reportable Segment
	Laser Products			Medical Technologies			Precision Motion			Total
Goodwill	$	132,954		$	83,192		$	26,291		$	242,437
Accumulated impairment of goodwill		(102,461	)		(12,147	)		(17,046	)		(131,654	)
Total	$	30,493		$	71,045		$	9,245		$	110,783

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

	Reportable Segment
	Laser Products			Medical Technologies			Precision Motion			Total
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 September 26, 2014 and December 31, 2013, respectively, are summarized as follows (in thousands):

	September 26, 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	$	79,279	$	(60,726	)	$	18,553	$	68,500	$	(56,327	)	$	12,173
Customer relationships		79,112		(29,716	)		49,396		55,585		(24,340	)		31,245
Customer backlog		3,078		(2,391	)		687		1,269		(1,269	)		—
Non-compete covenant		1,830		(250	)		1,580		—	—				—
Trademarks and trade names		15,478		(5,178	)		10,300		13,378		(4,530	)		8,848
Amortizable intangible assets		178,777		(98,261	)		80,516		138,732		(86,466	)		52,266
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	191,804	$	(98,261	)	$	93,543	$	151,759	$	(86,466	)	$	65,293

Amortization Expense of Intangible Assets

Amortization expense is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 26, 2014		September 27, 2013		September 26, 2014		September 27, 2013
Amortization expense – cost of sales	$	1,614	$	1,343	$	4,529	$	3,937
Amortization expense – operating expenses		2,843		1,772		7,463		5,625
Total amortization expense	$	4,457	$	3,115	$	11,992	$	9,562

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years and thereafter as of September 26, 2014 is as follows (in thousands):

Year Ending December 31,	Cost of Sales		Operating Expenses		Total
2014 (remainder of year)	$	1,614	$	2,800	$	4,414
2015		4,787		9,454		14,241
2016		3,376		9,222		12,598
2017		2,883		8,259		11,142
2018		1,350		7,378		8,728
Thereafter		4,543		24,850		29,393
Total	$	18,553	$	61,963	$	80,516