GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jul. 04, 2015

NOTE 7GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amounts of goodwill were as follows:

	Photonics			Lasers			Optics
(In thousands)	Group			Group			Group			Total
Balance at January 3, 2015:
Goodwill	98,808			129,761			41,314			269,883
Accumulated impairment losses	(47,458		)	(104,562		)	(20,339		)	(172,359		)

	51,350			25,199			20,975			97,524
Goodwill allocated to acquisition	—			6,681			—			6,681
Foreign currency impact	—			(456		)	—			(456		)

Balance at July 4, 2015:
Goodwill	98,808			135,986			41,314			276,108
Accumulated impairment losses	(47,458		)	(104,562		)	(20,339		)	(172,359		)

	$	51,350		$	31,424		$	20,975		$	103,749

As of July 4, 2015, acquisition related intangible assets were as follows:

	Amortization	Gross		Accumulated			Carrying
(In thousands)	Period	Value		Amortization			Value
Intangible assets subject to amortization:
Developed technology	10-20 years	$	39,815	$	(10,974	)	$	28,841
Customer relationships	up to 10 years	28,677		(19,806		)	8,871
In-process research and development	10 years	15,135		(1,879		)	13,256
Other	3 months-10 years	2,202		(1,204		)	998

		85,829		(33,863		)	51,966
Intangible assets not subject to amortization:
Trademarks and trade names		18,305		—			18,305

Intangible assets		$	104,134	$	(33,863	)	$	70,271

As of July 4, 2015, the gross values and accumulated amortization shown in the table above for intangible assets subject to amortization exclude amounts related to the Company’s acquisition of Spectra-Physics, Inc. (and certain related entities), as the purchased intangible assets related to that acquisition have been fully amortized.

As of January 3, 2015, acquisition related intangible assets were as follows:

	Amortization	Gross		Accumulated			Carrying
(In thousands)	Period	Value		Amortization			Value
Intangible assets subject to amortization:
Developed technology	10-20 years	$	45,646	$	(16,782	)	$	28,864
Customer relationships	up to 10 years	47,827		(37,312		)	10,515
In-process research and development	10 years	13,461		(1,496		)	11,965
Other	3 months-10 years	7,461		(6,299		)	1,162

		114,395		(61,889		)	52,506
Intangible assets not subject to amortization:
Trademarks and trade names		18,305		—			18,305

Intangible assets		$	132,700	$	(61,889	)	$	70,811

Amortization expense related to intangible assets totaled $2.1 million and $2.4 million for the three months ended July 4, 2015 and June 28, 2014, respectively, and $4.2 million and $4.9 million for the six months ended July 4, 2015 and June 28, 2014, respectively.

Estimated aggregate amortization expense for future fiscal years is as follows:

(In thousands)	Estimated Aggregate Amortization Expense
2015 (remaining)	$	4,178
2016	7,837
2017	6,689
2018	4,525
2019	3,934
Thereafter	17,500

	$	44,663

The Company has excluded $7.3 million of estimated amortization expense related to certain in-process research and development from the table above, as it was uncertain as of July 4, 2015 when the technology will be completed and when the amortization will begin.

- 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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