Goodwill and Intangibles

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following table sets forth the changes in the carrying amount of goodwill:


	Nine Months Ended September 30,
	2021		2020
Balance at January 1	$	41,366	$	82,092

Adjustment to goodwill during measurement period	(2,205)		—
Foreign exchange adjustment	(456)		228
Impairment losses	—		(44,589)
Balance at September 30	$	38,705	$	37,731

During the fourth quarter of 2020, the Company acquired Pi-Tecnologia S.A. ("PiTec"), which is located in Brazil, to support development in advanced photonics. The acquisition price was $2,717, of which $906 was paid at closing and the remainder of which may be earned over three years based on achievement of certain financial targets. The acquisition date contingent purchase consideration amount was $1,811. The Company paid $466 of the contingent purchase consideration on January 31, 2021. The liabilities related to the contingent purchase consideration were included in accrued expenses and other current liabilities and deferred taxes and other long-term liabilities as of September 30, 2021 and December 31, 2020. During the first quarter of 2021, the Company finalized the purchase price allocations related to the intangible assets, which resulted in adjusting the amounts that were provisionally reported as goodwill to intangible assets for customer relationships and

production know-how. This adjustment reduced goodwill by $2,205, increased intangible assets by $2,929 and increased deferred tax liabilities by $724. After completion of the purchase price allocations, the $724 excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed was recorded to goodwill. The goodwill arising from this acquisition will not be deductible for tax purposes.

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


	September 30, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives
Customer relationships	$	59,804	$	(22,149)	$	37,655	10 years	$	58,041	$	(17,674)	$	40,367	11 years
Technology, trademark and trade name	40,601		(25,002)		15,599		7 years	40,518		(20,949)		19,569		7 years
Production know-how	10,449		(8,604)		1,845		7 years	9,325		(8,167)		1,158		7 years
Patents	8,036		(7,349)		687		8 years	8,036		(7,016)		1,020		8 years
Total	$	118,890	$	(63,104)	$	55,786		$	115,920	$	(53,806)	$	62,114

Amortization expense for the three months ended September 30, 2021 and 2020 was $3,051 and $2,947, respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 was $9,387 and $9,029, respectively. The estimated future amortization expense for intangibles for the remainder of 2021 and subsequent years is as follows:


2021 (a)		2022		2023	2024		2025		Thereafter		Total
$	3,050	$	11,459	10,552	$	8,025	$	6,518	$	16,182	$	55,786

(a) For the three-month period beginning October 1, 2021.