Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2017

The following table summarizes changes in goodwill during the three months ended March 31, 2017 (in thousands):

Balance at beginning of the period	$	108,128
Goodwill acquired from Laser Quantum acquisition		31,459
Goodwill acquired from ThingMagic acquisition		9,976
Effect of foreign exchange rate changes		715
Balance at end of the period	$	150,278

Goodwill by reportable segment as of March 31, 2017 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	168,452		$	99,092		$	33,963		$	301,507
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	65,991		$	67,370		$	16,917		$	150,278

Goodwill by reportable segment as of December 31, 2016 was 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

Intangible assets as of March 31, 2017 and December 31, 2016, respectively, are summarized as follows (in thousands):

	March 31, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and acquired technologies	$	105,232	$	(69,585	)	$	35,647	$	84,742	$	(67,902	)	$	16,840
Customer relationships		92,393		(44,892	)		47,501		69,554		(42,934	)		26,620
Customer backlog		2,156		(1,101	)		1,055		622		(540	)		82
Non-compete covenant		2,514		(1,553	)		961		2,514		(1,419	)		1,095
Trademarks and trade names		13,030		(6,858	)		6,172		10,709		(6,630	)		4,079
Amortizable intangible assets		215,325		(123,989	)		91,336		168,141		(119,425	)		48,716
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	228,352	$	(123,989	)	$	104,363	$	181,168	$	(119,425	)	$	61,743

Amortization expense is as follows (in thousands):

	Three Months Ended
	March 31, 2017		April 1, 2016
Amortization expense – cost of revenue	$	1,641	$	1,184
Amortization expense – operating expenses		2,849		2,108
Total amortization expense	$	4,490	$	3,292

Estimated amortization expense for each of the five succeeding years and thereafter as of March 31, 2017 was as follows (in thousands):