Goodwill And Intangibles

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

The following table sets forth the changes in the carrying amount of goodwill for the year ended December 31, 2013:



	December 31, 2013			December 31, 2012
Balance at January 1	$	2,898		$	—
Adjustment	(95		)	—
Impairment	(2,803		)	—
Total goodwill arising from acquisition	455			2,898
Balance at December 31	$	455		$	2,898

The goodwill balance at January 1 of $2,898 and the adjustment of $95, largely reflected the potential synergies and expansion of the Company’s service offerings complementary to its specialized laser systems and UV and short-pulse fiber lasers resulting from the 2012 acquisition from JPSA.

The goodwill of $455 arising from the Mobius acquisition relates to the expected synergies for the Company's expansion of product offerings with UV and short pulsed fiber lasers. The goodwill arising from the acquisition in 2013 is deductible over 15 years for federal tax purposes.

During the second quarter of 2013, the Company undertook an impairment analysis of long-lived assets and goodwill related to IPGM, the assets of which were acquired in September 2012 which is also described in Note 1.

Intangible assets, subject to amortization, consisted of the following:



	December 31, 2013								December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Lives	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Lives

Patents	$	4,667	$	(4,091	)	$	576	6 Years	$	4,664	$	(4,193	)	$	471	6 Years
Customer relationships	4,112		(3,324		)	788		5 Years	3,993		(2,363		)	1,630		5 Years
Production know-how	7,063		(1,747		)	5,316		8 Years	2,514		(656		)	1,858		9 Years
Technology, trademark and tradename	4,271		(1,387		)	2,884		8 Years	4,229		(678		)	3,551		8 Years
	$	20,113	$	(10,549	)	$	9,564		$	15,400	$	(7,890	)	$	7,510

Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $2,310, $2,091 and $2,246, respectively.

The estimated future amortization expense for intangibles as of December 31, 2013 is as follows:



2014	2015	2016	2017	2018	Thereafter	Total
$2,149	$1,549	$1,454	$1,454	$1,389	$1,569	$9,564

Impairment — In accordance with ASC 350-Intangibles-Goodwill and Other, the Company assesses the impairment of its long-lived assets including its definite-lived intangible assets and goodwill, at least annually for goodwill, and whenever changes in events or circumstances indicate that the carrying value of such assets may not be recoverable. During each reporting period, the Company assesses for factors that may be present which would cause an impairment review.

The Company performed an impairment analysis to assess whether there was impairment of long-lived assets of IPGM including identifiable intangibles included in the table above using the guidance in ASC 360-10-35. The Company concluded that no impairment existed as the undiscounted cash flows from IPGM are forecasted to be greater than the carrying value of identified long-lived assets.

The Company carried out the two-step goodwill impairment test in accordance with the provisions of ASC 350-20-35. That analysis indicated that the fair value of the IPGM reporting unit, based on a discounted cash flow analysis, was less than the carrying value. The implied value of goodwill, as measured in step 2, was zero. Accordingly, the Company adjusted the value of goodwill associated with IPGM to $0.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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