Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2017

The following table summarizes changes in goodwill during the six months ended June 30, 2017 (in thousands):

Balance at beginning of the period	$	108,128
Goodwill acquired from Laser Quantum acquisition		31,459
Goodwill acquired from ThingMagic acquisition		9,929
Effect of foreign exchange rate changes		2,022
Balance at end of the period	$	151,538

Goodwill by reportable segment as of June 30, 2017 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	169,759		$	99,045		$	33,963		$	302,767
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	67,298		$	67,323		$	16,917		$	151,538

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 June 30, 2017 and December 31, 2016, respectively, are summarized as follows (in thousands):

	June 30, 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 developed technologies	$	106,058	$	(71,498	)	$	34,560	$	84,742	$	(67,902	)	$	16,840
Customer relationships		93,445		(47,435	)		46,010		69,554		(42,934	)		26,620
Customer backlog		2,218		(1,686	)		532		622		(540	)		82
Non-compete covenant		2,514		(1,687	)		827		2,514		(1,419	)		1,095
Trademarks and trade names		13,167		(7,130	)		6,037		10,709		(6,630	)		4,079
Amortizable intangible assets		217,402		(129,436	)		87,966		168,141		(119,425	)		48,716
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	230,429	$	(129,436	)	$	100,993	$	181,168	$	(119,425	)	$	61,743

Amortization expense is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2017		July 1, 2016		June 30, 2017		July 1, 2016
Amortization expense – cost of revenue	$	1,696	$	985	$	3,337	$	2,169
Amortization expense – operating expenses		3,347		1,979		6,196		4,087
Total amortization expense	$	5,043	$	2,964	$	9,533	$	6,256

Estimated amortization expense for each of the five succeeding years and thereafter as of June 30, 2017 was as follows (in thousands):