Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 28, 2018

The following table summarizes changes in goodwill during the nine months ended September 28, 2018 (in thousands):

Balance at beginning of the period	$	210,988
Goodwill acquired from acquisitions		11,862
Effect of foreign exchange rate changes		(3,078	)
Balance at end of the period	$	219,772

Goodwill by reportable segment as of September 28, 2018 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	169,803		$	156,129		$	45,069		$	371,001
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	67,342		$	124,407		$	28,023		$	219,772

Goodwill by reportable segment as of December 31, 2017 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	170,818		$	157,436		$	33,963		$	362,217
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	68,357		$	125,714		$	16,917		$	210,988

Intangible assets as of September 28, 2018 and December 31, 2017, respectively, are summarized as follows (in thousands):

	September 28, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	134,144	$	(84,359	)	$	49,785	$	130,890	$	(77,295	)	$	53,595
Customer relationships		140,539		(61,253	)		79,286		131,809		(52,015	)		79,794
Customer backlog		1,779		(761	)		1,018		2,524		(2,284	)		240
Non-compete covenant		2,514		(2,358	)		156		2,514		(1,956	)		558
Trademarks and trade names		16,064		(8,688	)		7,376		15,708		(7,874	)		7,834
Amortizable intangible assets		295,040		(157,419	)		137,621		283,445		(141,424	)		142,021
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	308,067	$	(157,419	)	$	150,648	$	296,472	$	(141,424	)	$	155,048

Amortization expense was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
	2018		2017		2018		2017
Amortization expense – cost of revenue	$	2,492	$	2,741	$	7,461	$	6,078
Amortization expense – operating expenses		3,947		3,217		11,538		9,413
Total amortization expense	$	6,439	$	5,958	$	18,999	$	15,491

Estimated amortization expense for each of the five succeeding years and thereafter as of September 28, 2018 was as follows (in thousands):