Goodwill, Intangible Assets and Impairment Charges

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets and Impairment Charges

6. Goodwill, Intangible Assets and Impairment Charges

Goodwill

The following table summarizes changes in goodwill during the year ended December 31, 2020 (in thousands):

	December 31, 2020
Balance at beginning of year	$	274,710
Goodwill adjustment from acquisitions		(93	)
Effect of foreign exchange rate changes		11,363
Balance at end of year	$	285,980

Goodwill by reportable segment as of December 31, 2020 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	218,517		$	165,195		$	53,497		$	437,209
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	116,056		$	133,473		$	36,451		$	285,980

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

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

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	164,430	$	(110,572	)	$	53,858		8.8
Customer relationships		167,429		(92,892	)		74,537		10.9
Trademarks and trade names		18,367		(11,268	)		7,099		7.8
Amortizable intangible assets		350,226		(214,732	)		135,494		9.9
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	363,253	$	(214,732	)	$	148,521

	December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	159,217	$	(97,523	)	$	61,694		9.5
Customer relationships		161,807		(78,206	)		83,601		11.9
Customer backlog		2,316		(2,316	)		—	—
Trademarks and trade names		17,871		(10,018	)		7,853		8.6
Amortizable intangible assets		341,211		(188,063	)		153,148		10.7
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	354,238	$	(188,063	)	$	166,175

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 was as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Amortization expense – cost of revenue	$	11,123	$	10,588	$	10,060
Amortization expense – operating expenses		13,970		15,857		15,550
Total amortization expense	$	25,093	$	26,445	$	25,610

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
2021	$	11,998	$	14,376	$	26,374
2022		10,274		13,535		23,809
2023		9,033		11,777		20,810
2024		6,752		9,738		16,490
2025		5,273		8,105		13,378
Thereafter		10,528		24,105		34,633
Total	$	53,858	$	81,636	$	135,494

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during 2020, 2019 or 2018.