Goodwill and Intangible Assets (Tables)

6 Months Ended

Jul. 01, 2016

The following table summarizes changes in goodwill during the six months ended July 1, 2016 (in thousands):

Balance at beginning of the period	$	103,456
Net working capital adjustment of Lincoln Laser acquisition		(43	)
Goodwill acquired from Reach acquisition		4,840
Balance at end of the period	$	108,253

Goodwill by reportable segment as of July 1, 2016 was as follows (in thousands):

	Reportable Segment
	Laser Products			Vision Technologies			Precision Motion			Total
Goodwill	$	136,278		$	89,241		$	33,963		$	259,482
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	33,817		$	57,519		$	16,917		$	108,253

Goodwill by reportable segment as of December 31, 2015 was as follows (in thousands):

	Reportable Segment
	Laser Products			Vision Technologies			Precision Motion			Total
Goodwill	$	136,321		$	84,401		$	33,963		$	254,685
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	33,860		$	52,679		$	16,917		$	103,456

Intangible assets as of July 1, 2016 and December 31, 2015, respectively, are summarized as follows (in thousands):

	July 1, 2016							December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and acquired technologies	$	81,085	$	(66,224	)	$	14,861	$	82,821	$	(66,297	)	$	16,524
Customer relationships		69,775		(39,840	)		29,935		67,168		(36,914	)		30,254
Customer backlog		636		(225	)		411		2,644		(2,589	)		55
Non-compete covenant		2,514		(1,150	)		1,364		2,514		(882	)		1,632
Trademarks and trade names		10,790		(6,368	)		4,422		10,711		(5,934	)		4,777
Amortizable intangible assets		164,800		(113,807	)		50,993		165,858		(112,616	)		53,242
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	177,827	$	(113,807	)	$	64,020	$	178,885	$	(112,616	)	$	66,269

Amortization expense is as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2016		July 3, 2015		July 1, 2016		July 3, 2015
Amortization expense – cost of revenue	$	985	$	1,174	$	2,169	$	2,293
Amortization expense – operating expenses		1,979		1,852		4,087		3,741
Total amortization expense	$	2,964	$	3,026	$	6,256	$	6,034

Estimated amortization expense for each of the five succeeding years and thereafter as of July 1, 2016 was as follows (in thousands):