Goodwill, Intangible Assets and Impairment Charges

12 Months Ended

Dec. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Impairment Charges

7. Goodwill, Intangible Assets and Impairment Charges

Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2018 (in thousands):

	December 31, 2018
Balance at beginning of year	$	210,988
Goodwill acquired from acquisitions		12,011
Effect of foreign exchange rate changes		(5,337	)
Balance at end of year	$	217,662

Goodwill by reportable segment as of December 31, 2018 is as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	168,955		$	155,017		$	44,919		$	368,891
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	66,494		$	123,295		$	27,873		$	217,662

Goodwill by reportable segment as of December 31, 2017 is 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

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

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	134,034	$	(86,623	)	$	47,411		9.0
Customer relationships		139,097		(64,174	)		74,923		11.7
Customer backlog		1,738		(1,191	)		547		0.4
Non-compete covenant		2,514		(2,493	)		21		0.1
Trademarks and trade names		15,915		(8,924	)		6,991		9.1
Amortizable intangible assets		293,298		(163,405	)		129,893		10.5
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	306,325	$	(163,405	)	$	142,920

	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	130,890	$	(77,295	)	$	53,595		10.2
Customer relationships		131,809		(52,015	)		79,794		12.3
Customer backlog		2,524		(2,284	)		240		0.8
Non-compete covenant		2,514		(1,956	)		558		0.9
Trademarks and trade names		15,708		(7,874	)		7,834		9.7
Amortizable intangible assets		283,445		(141,424	)		142,021		11.3
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	296,472	$	(141,424	)	$	155,048

Amortizable intangible assets as of December 31, 2018 included intangible assets of $1.2 million recognized in conjunction with the acquisition of certain customer relationships in September 2018.

All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense is as follows (in thousands):

	Year Ended December 31,
	2018		2017		2016
Amortization expense – cost of revenue	$	10,060	$	8,824	$	4,164
Amortization expense – operating expenses		15,550		12,096		8,251
Total amortization expense	$	25,610	$	20,920	$	12,415

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

Year Ending December 31,	Cost of Revenue		Operating Expenses		Total
2019	$	9,222	$	14,733	$	23,955
2020		8,321		12,395		20,716
2021		7,406		11,489		18,895
2022		6,308		9,666		15,974
2023		5,409		8,153		13,562
Thereafter		10,745		26,046		36,791
Total	$	47,411	$	82,482	$	129,893

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during 2018, 2017 or 2016.