NOTE 6CAPITAL ASSETS

Property and Equipment

Property and equipment as of January 2, 2016 and October 3, 2015 consist of the following:


		January 2,		October 3,
(in thousands)		2016		2015
Land and improvements	$	1,704	$	1,705
Buildings and improvements		52,840		53,097
Machinery and equipment		168,010		162,472
Total		222,554		217,274

Less accumulated depreciation		(140,326)		(136,820)
Property and equipment, net	$	82,228	$	80,454

Goodwill

Changes to the carrying value of goodwill during the three months ended January 2, 2016 were as follows:


(in thousands)		Test		Sensors		Total
Balance, October 3, 2015	$	26,243	$	1,434	$	27,677
Adjustment related to finalization
of purchase accounting1		(530)		-		(530)
Currency translation gain (loss)		(299)		(17)		(316)
Balance, January 2, 2016	$	25,414	$	1,417	$	26,831

1 Goodwill from our acquisition of Instrument and Calibration Sweden AB (ICS) was determined to be customer lists and reclassified to intangible assets. Refer to Note 16 for information related to our acquisition.

Intangible Assets

Intangible assets as of January 2, 2016 and October 3, 2015 consist of the following:


		January 2, 2016
							Weighted
							Average
		Gross Carrying		Accumulated		Net Carrying	Useful Life
(in thousands)		Amount		Amortization		Value	(in Years)
Software development costs	$	20,305	$	(14,269)	$	6,036	6.2
Patents		11,639		(5,263)		6,376	14.5
Trademarks and trade names		6,052		(1,692)		4,360	29.4
Customer lists		3,100		(700)		2,400	7.5
Land-use rights		1,202		(176)		1,026	47.8
Total	$	42,298	$	(22,100)	$	20,198	13.1


		October 3, 2015
							Weighted
							Average
		Gross Carrying		Accumulated		Net Carrying	Useful Life
(in thousands)		Amount		Amortization		Value	(in Years)
Software development costs	$	19,546	$	(14,046)	$	5,500	6.2
Patents		11,838		(5,141)		6,697	14.5
Trademarks and trade names		6,163		(1,659)		4,504	29.4
Customer lists		2,561		(610)		1,951	8.1
Land-use rights		1,227		(173)		1,054	47.8
Total	$	41,335	$	(21,629)	$	19,706	13.4

Amortization expense recognized during the three months ended January 2, 2016 and December 27, 2014 was $601 and $1,039, respectively. The estimated future amortization expense related to intangible assets for the next five fiscal years is as follows:


Fiscal Year	Amortization Expense (in thousands)
Remainder of 2016	$	1,793
2017	$	2,390
2018	$	1,530
2019	$	1,270
2020	$	1,239
2021	$	1,131

Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods or other factors.