Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 29, 2017

The following table summarizes changes in goodwill during the nine months ended September 29, 2017 (in thousands):

Balance at beginning of the period	$	108,128
Goodwill acquired from Laser Quantum acquisition		31,041
Goodwill acquired from ThingMagic acquisition		9,929
Goodwill acquired from WOM acquisition		53,775
Effect of foreign exchange rate changes		4,847
Balance at end of the period	$	207,720

Goodwill by reportable segment as of September 29, 2017 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	170,450		$	154,536		$	33,963		$	358,949
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	67,989		$	122,814		$	16,917		$	207,720

Goodwill by reportable segment as of December 31, 2016 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	136,278		$	89,116		$	33,963		$	259,357
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	33,817		$	57,394		$	16,917		$	108,128

Intangible assets as of September 29, 2017 and December 31, 2016, respectively, are summarized as follows (in thousands):

	September 29, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	129,059	$	(74,456	)	$	54,603	$	84,742	$	(67,902	)	$	16,840
Customer relationships		130,311		(49,765	)		80,546		69,554		(42,934	)		26,620
Customer backlog		3,216		(2,273	)		943		622		(540	)		82
Non-compete covenant		2,514		(1,821	)		693		2,514		(1,419	)		1,095
Trademarks and trade names		15,644		(7,518	)		8,126		10,709		(6,630	)		4,079
Amortizable intangible assets		280,744		(135,833	)		144,911		168,141		(119,425	)		48,716
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	293,771	$	(135,833	)	$	157,938	$	181,168	$	(119,425	)	$	61,743

Amortization expense is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 29, 2017		September 30, 2016		September 29, 2017		September 30, 2016
Amortization expense – cost of revenue	$	2,741	$	994	$	6,078	$	3,163
Amortization expense – operating expenses		3,217		2,066		9,413		6,153
Total amortization expense	$	5,958	$	3,060	$	15,491	$	9,316

Estimated amortization expense for each of the five succeeding years and thereafter as of September 29, 2017 was as follows (in thousands):