Goodwill and Intangible Assets

3 Months Ended

Jan. 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS 

During the quarter ended January 2, 2021, we noted no indications of impairment or triggering events to cause us to review goodwill for potential impairment. We will conduct our annual goodwill testing during the fourth fiscal quarter.

See Note 8, "Goodwill and Intangible Assets" to the Company’s audited consolidated financial statements and notes thereto for the year ended October 3, 2020 included in the Company’s Annual Report on Form 10-K for discussion of the non-cash pre-tax charges we recorded in the quarter ended April 4, 2020 related to the goodwill, intangible assets, property, plant and equipment and ROU assets of the ILS reporting unit of $327.2 million, $33.9 million, $85.6 million and $1.8 million, respectively.

The changes in the carrying amount of goodwill, all of which is in the OLS segment, for the period from October 3, 2020 to January 2, 2021 are as follows (in thousands):

	OEM Laser Sources
Balance as of October 3, 2020	$	101,317
Translation adjustments	3,425
Balance as of January 2, 2021	$	104,742

Components of our amortizable intangible assets are as follows (in thousands):

	January 2, 2021						October 3, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Existing technology	$	38,737	$	(31,547)	$	7,190	$	46,547	$	(37,630)	$	8,917
Customer relationships	23,245		(11,769)		11,476		24,388		(12,923)		11,465
Production know-how	2,300		(1,032)		1,268		2,300		(917)		1,383
Total	$	64,282	$	(44,348)	$	19,934	$	73,235	$	(51,470)	$	21,765

For accounting purposes, when an intangible asset is fully amortized, it is removed from the disclosure schedule.

Amortization expense for intangible assets for the three months ended January 2, 2021 and December 28, 2019 was $2.6 million and $12.3 million, respectively. The change in the accumulated amortization also includes $1.8 million (increase) and $2.8 million (increase) of foreign exchange impact for the three months ended January 2, 2021 and December 28, 2019, respectively.

At January 2, 2021, estimated amortization expense for the remainder of fiscal 2021, the next five succeeding fiscal years and all fiscal years thereafter are as follows (in thousands):

	Estimated Amortization Expense
2021 (remainder)	$	7,632
2022	3,373
2023	2,779
2024	1,997
2025	1,996
2026	1,997
Thereafter	160
Total	$	19,934