Goodwill and Intangible Assets (Tables)

9 Months Ended

Oct. 02, 2020

The following table summarizes changes in goodwill during the nine months ended October 2, 2020 (in thousands):

Balance at beginning of the period	$	274,710
Net working capital adjustments from a prior-year acquisition		1,118
Effect of foreign exchange rate changes		3,695
Balance at end of the period	$	279,523

Goodwill by reportable segment as of October 2, 2020 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	215,697		$	162,580		$	52,475		$	430,752
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	113,236		$	130,858		$	35,429		$	279,523

Goodwill by reportable segment as of December 31, 2019 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	213,413		$	160,086		$	52,440		$	425,939
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	110,952		$	128,364		$	35,394		$	274,710

Intangible assets as of October 2, 2020 and December 31, 2019, respectively, are summarized as follows (in thousands):

	October 2, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	160,496	$	(106,118	)	$	54,378	$	159,217	$	(97,523	)	$	61,694
Customer relationships		163,155		(88,072	)		75,083		161,807		(78,206	)		83,601
Customer backlog		—		—			—		2,316		(2,316	)		—
Trademarks and trade names		17,939		(10,814	)		7,125		17,871		(10,018	)		7,853
Amortizable intangible assets		341,590		(205,004	)		136,586		341,211		(188,063	)		153,148
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	354,617	$	(205,004	)	$	149,613	$	354,238	$	(188,063	)	$	166,175

Amortization expense was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 2,		September 27,		October 2,		September 27,
	2020		2019		2020		2019
Amortization expense – cost of revenue	$	2,820	$	2,797	$	8,270	$	7,554
Amortization expense – operating expenses		3,533		3,970		10,388		11,740
Total amortization expense	$	6,353	$	6,767	$	18,658	$	19,294

Estimated amortization expense for each of the five succeeding years and thereafter as of October 2, 2020 was as follows (in thousands):