Goodwill, Intangible Assets and Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2014

The results of the impairment review as of December 31, 2014 are summarized in the following table (in thousands):

	Pre-Impairment Net Carrying Value		Impairment Charge			Post-Impairment Net Carrying Value
Goodwill	$	110,321	$	(19,575	)	$	90,746
Intangible assets		89,109		(21,867	)		67,242
Total	$	199,430	$	(41,442	)	$	157,988

The following table summarizes changes in goodwill during the year ended December 31, 2014 (in thousands):

	December 31, 2014
Balance at beginning of year	$	71,156
Goodwill acquired from the JADAK acquisition		44,584
Recovery of escrow from the NDS acquisition		(5,419	)
NDS goodwill impairment		(19,575	)
Balance at end of year	$	90,746

Goodwill by reportable segment as of December 31, 2014 is as follows (in thousands):

	Reportable Segment
	Laser Products			Medical Technologies			Precision Motion			Total
Goodwill	$	132,954		$	82,730		$	26,291		$	241,975
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	30,493		$	51,008		$	9,245		$	90,746

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

	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and acquired technologies	$	78,253	$	(62,010	)	$	16,243		7.5
Customer relationships		63,029		(31,531	)		31,498		14.7
Customer backlog		1,810		(1,641	)		169		0.2
Non-compete covenant		1,830		(366	)		1,464		4.2
Trademarks and trade names		10,205		(5,364	)		4,841		9.8
Amortizable intangible assets		155,127		(100,912	)		54,215		11.8
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Totals	$	168,154	$	(100,912	)	$	67,242

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and acquired technologies	$	68,500	$	(56,327	)	$	12,173		5.3
Customer relationships		55,585		(24,340	)		31,245		13.9
Customer backlog		1,269		(1,269	)		—		—
Trademarks and trade names		13,378		(4,530	)		8,848		16.4
Amortizable intangible assets		138,732		(86,466	)		52,266		12.3
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Totals	$	151,759	$	(86,466	)	$	65,293

Amortization expense is as follows (in thousands):

	Year Ended December 31,
	2014		2013		2012
Amortization expense – cost of sales	$	6,143	$	5,280	$	3,165
Amortization expense – operating expenses		10,262		7,270		2,650
Total amortization expense	$	16,405	$	12,550	$	5,815

Estimated amortization expense for each of the five succeeding years and thereafter as of December 31, 2014 is as follows (in thousands):