Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Intangible Assets [Abstract]

NOTE 5 GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the years ended December 31, 2011 and January 1, 2011 are as follows:


(In thousands)	PPT Division			Lasers Division			Ophir Division		Total
Balance at January 2, 2010:
Goodwill	$	69,932		$	104,562		$	—	$	174,494
Accumulated impairment losses		—			(104,562	)		—		(104,562	)

		69,932			—			—		69,932
Reduction of goodwill allocated to Hilger Crystals Limited		(610	)		—			—		(610	)

Balance at January 1, 2011:
Goodwill		69,322			104,562			—		173,884
Accumulated impairment losses		—			(104,562	)		—		(104,562	)

		69,322			—			—		69,322
Goodwill acquired		—			6,745			67,826		74,571
Foreign currency impact		—			(634	)		—		(634	)

Balance at December 31, 2011:
Goodwill		69,322			110,673			67,826		247,821
Accumulated impairment losses		—			(104,562	)		—		(104,562	)

	$	69,322		$	6,111		$	67,826	$	143,259

During 2011, the Company allocated $6.7 million of goodwill to its Lasers Division due to the acquisition of High Q and $67.8 million to its Ophir Division due to the acquisitions of Ophir and Opticoat.

During 2010, the Company recorded a reduction of $0.6 million of goodwill relating to the disposal of its Hilger Crystals Limited subsidiary, based on the amount of goodwill allocated to such subsidiary.

Intangible assets, excluding goodwill, were as follows:


(In thousands)	December 31, 2011		January 1, 2011
Intangible assets subject to amortization:
Developed technology, net of accumulated amortization of $6,903 and $5,056 as of December 31, 2011 and January 1, 2011, respectively	$	51,159	$	5,074
Customer relationships, net of accumulated amortization of $16,500 and $12,684 as of December 31, 2011 and January 1, 2011, respectively		61,609		7,416
In-process research and development, net of accumulated amortization of $0 as of December 31, 2011 and January 1, 2011		10,057		—
Other, net of accumulated amortization of $1,996 and $340 as of December 31, 2011 and January 1, 2011, respectively		5,507		—

		128,332		12,490
Intangible assets not subject to amortization:
Trademarks and trade names		22,240		12,500

Intangible assets, net	$	150,572	$	24,990

Amortization expense related to intangible assets totaled $7.7 million, $3.2 million and $3.0 million for 2011, 2010 and 2009, respectively.

During 2009, the Company determined that it would not continue to pursue technology related to certain purchased in-process research and development related to the New Focus business and recorded an impairment charge of $0.4 million associated with such technology.

Estimated aggregate amortization expense for future fiscal years will be amortized over a weighted-average life of 11.3 years as follows:


(In thousands)	Estimated Aggregate Amortization Expense
2012	$	18,484
2013		15,269
2014		14,978
2015		13,503
2016		11,160
Thereafter		44,881

	$	118,275

The Company has excluded $10.1 million of amortization expense related to in-process research and development from the table above, as it was uncertain as of December 31, 2011 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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