Goodwill, Intangible Assets and Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2016

The following table summarizes changes in goodwill during the year ended December 31, 2016 (in thousands):

	December 31, 2016
Balance at beginning of year	$	103,456
Net working capital adjustment of Lincoln Laser acquisition		(43	)
Goodwill acquired from Reach acquisition		4,715
Balance at end of year	$	108,128

Goodwill by reportable segment as of December 31, 2016 is as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	136,278		$	89,116		$	33,963		$	259,357
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	33,817		$	57,394		$	16,917		$	108,128

Goodwill by reportable segment as of December 31, 2015 is as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	136,321		$	84,401		$	33,963		$	254,685
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	33,860		$	52,679		$	16,917		$	103,456

Intangible assets as of December 31, 2016 and 2015, respectively, are summarized as follows (dollar amounts in thousands):

	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and acquired technologies	$	84,742	$	(67,902	)	$	16,840		7.6
Customer relationships		69,554		(42,934	)		26,620		12.9
Customer backlog		622		(540	)		82		0.9
Non-compete covenant		2,514		(1,419	)		1,095		2.0
Trademarks and trade names		10,709		(6,630	)		4,079		8.3
Amortizable intangible assets		168,141		(119,425	)		48,716		10.2
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	181,168	$	(119,425	)	$	61,743

	December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Amortizable intangible assets:
Patents and acquired technologies	$	82,821	$	(66,297	)	$	16,524		7.7
Customer relationships		67,168		(36,914	)		30,254		13.6
Customer backlog		2,644		(2,589	)		55		1.0
Non-compete covenant		2,514		(882	)		1,632		3.2
Trademarks and trade names		10,711		(5,934	)		4,777		9.1
Amortizable intangible assets		165,858		(112,616	)		53,242		11.0
Non-amortizable intangible assets:
Trade names		13,027		—			13,027
Total	$	178,885	$	(112,616	)	$	66,269

The fair value of intangible assets acquired is comprised of the following (dollar amounts in thousands):

Amortization expense is as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Amortization expense – cost of revenue	$	4,164	$	4,712	$	6,143
Amortization expense – operating expenses		8,251		7,611		10,262
Total amortization expense	$	12,415	$	12,323	$	16,405

Estimated future amortization expense for each of the five succeeding years and thereafter is as follows (in thousands):