Goodwill and Intangible Assets

6 Months Ended

Jun. 27, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Intangible Assets

Goodwill

Goodwill is recorded when the consideration paid for a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. The Company tests its goodwill balances for impairment annually as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist. The Company performed the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2025 and noted no impairment.

The following table summarizes changes in goodwill during the six months ended June 27, 2025 (in thousands):


	Amount
Balance at beginning of the period	$	584,098
Goodwill acquired from Keonn acquisition		44,214
Effect of foreign exchange rate changes		20,781
Balance at end of the period	$	649,093

Goodwill by reportable segment as of June 27, 2025 was as follows (in thousands):


	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	447,763		$	352,559		$	800,322
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	328,256		$	320,837		$	649,093

Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):


	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	439,980		$	295,347		$	735,327
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	320,473		$	263,625		$	584,098

Intangible Assets

Intangible assets as of June 27, 2025 and December 31, 2024, respectively, are summarized as follows (in thousands):


	June 27, 2025							December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	236,374	$	(172,760	)	$	63,614	$	218,867	$	(159,041	)	$	59,826
Customer relationships		296,698		(177,267	)		119,431		265,156		(158,938	)		106,218
Trademarks and trade names		25,352		(17,794	)		7,558		23,367		(16,594	)		6,773
Amortizable intangible assets		558,424		(367,821	)		190,603		507,390		(334,573	)		172,817
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Total intangible assets	$	571,451	$	(367,821	)	$	203,630	$	520,417	$	(334,573	)	$	185,844

All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2025		2024		2025		2024
Amortization expense – cost of revenue	$	4,220	$	3,685	$	7,781	$	7,377
Amortization expense – operating expenses		6,871		6,907		12,425		12,657
Total amortization expense	$	11,091	$	10,592	$	20,206	$	20,034

As of June 27, 2025, estimated amortization expense for each of the five succeeding years and thereafter was as follows (in thousands):


Year Ending December 31,	Cost of Revenue		Operating Expenses		Total
2025 (remainder of year)	$	8,517	$	13,889	$	22,406
2026		15,057		23,003		38,060
2027		12,128		19,131		31,259
2028		10,318		16,076		26,394
2029		7,446		12,455		19,901
Thereafter		10,148		42,435		52,583
Total	$	63,614	$	126,989	$	190,603