Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2019

The following table summarizes changes in goodwill during the nine months ended September 27, 2019 (in thousands):

Balance at beginning of the period	$	217,662
Goodwill acquired from acquisitions		55,894
Effect of foreign exchange rate changes		(4,815	)
Balance at end of the period	$	268,741

Goodwill by reportable segment as of September 27, 2019 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	209,506		$	158,781		$	51,683		$	419,970
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	107,045		$	127,059		$	34,637		$	268,741

Goodwill by reportable segment as of December 31, 2018 was 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

Intangible assets as of September 27, 2019 and December 31, 2018, respectively, are summarized as follows (in thousands):

	September 27, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	155,528	$	(93,459	)	$	62,069	$	134,034	$	(86,623	)	$	47,411
Customer relationships		158,550		(73,754	)		84,796		139,097		(64,174	)		74,923
Customer backlog		2,208		(1,925	)		283		1,738		(1,191	)		547
Non-compete covenant		—		—			—		2,514		(2,493	)		21
Trademarks and trade names		17,514		(9,611	)		7,903		15,915		(8,924	)		6,991
Amortizable intangible assets		333,800		(178,749	)		155,051		293,298		(163,405	)		129,893
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	346,827	$	(178,749	)	$	168,078	$	306,325	$	(163,405	)	$	142,920

Amortization expense was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
	2019		2018		2019		2018
Amortization expense – cost of revenue	$	2,797	$	2,492	$	7,554	$	7,461
Amortization expense – operating expenses		3,970		3,947		11,740		11,538
Total amortization expense	$	6,767	$	6,439	$	19,294	$	18,999

Estimated amortization expense for each of the five succeeding years and thereafter as of September 27, 2019 was as follows (in thousands):