Goodwill, Intangible Assets and Impairment Charges

12 Months Ended

Dec. 31, 2021

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, 2021 (in thousands):

	December 31, 2021
Balance at beginning of year	$	285,980
Goodwill from current year acquisitions		202,711
Effect of foreign exchange rate changes		(9,191	)
Balance at end of year	$	479,500

Goodwill by reportable segment as of December 31, 2021 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	214,564		$	160,675		$	255,490		$	630,729
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	112,103		$	128,953		$	238,444		$	479,500

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

Intangible Assets

Intangible assets as of December 31, 2021 and 2020, respectively, are summarized as follows (dollar amounts in thousands):

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and developed technologies	$	189,609	$	(122,130	)	$	67,479		10.7
Customer relationships		228,656		(104,386	)		124,270		15.5
Customer backlog		6,862		(2,254	)		4,608		0.7
Trademarks and trade names		23,976		(12,371	)		11,605		10.5
Amortizable intangible assets		449,103		(241,141	)		207,962		13.3
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	462,130	$	(241,141	)	$	220,989

	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

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,
	2021		2020		2019
Amortization expense – cost of revenue	$	13,288	$	11,123	$	10,588
Amortization expense – operating expenses		16,577		13,970		15,857
Total amortization expense	$	29,865	$	25,093	$	26,445

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
2022	$	13,749	$	27,071	$	40,820
2023		12,451		20,935		33,386
2024		10,100		17,575		27,675
2025		8,529		14,867		23,396
2026		7,108		12,659		19,767
Thereafter		15,542		47,376		62,918
Total	$	67,479	$	140,483	$	207,962

Impairment Charges

The Company did not have any goodwill or indefinite-lived intangible asset impairment charges during 2021, 2020 or 2019.