Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 29, 2018

The following table summarizes changes in goodwill during the six months ended June 29, 2018 (in thousands):

Balance at beginning of the period	$	210,988
Goodwill acquired from Zettlex acquisition		10,844
Effect of foreign exchange rate changes		(3,508	)
Balance at end of the period	$	218,324

Goodwill by reportable segment as of June 29, 2018 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	169,768		$	155,494		$	44,291		$	369,553
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	67,307		$	123,772		$	27,245		$	218,324

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

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	170,818		$	157,436		$	33,963		$	362,217
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	68,357		$	125,714		$	16,917		$	210,988

Intangible assets as of June 29, 2018 and December 31, 2017, respectively, are summarized as follows (in thousands):

	June 29, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	133,484	$	(81,818	)	$	51,666	$	130,890	$	(77,295	)	$	53,595
Customer relationships		138,868		(58,112	)		80,756		131,809		(52,015	)		79,794
Customer backlog		3,907		(2,584	)		1,323		2,524		(2,284	)		240
Non-compete covenant		2,514		(2,224	)		290		2,514		(1,956	)		558
Trademarks and trade names		16,042		(8,390	)		7,652		15,708		(7,874	)		7,834
Amortizable intangible assets		294,815		(153,128	)		141,687		283,445		(141,424	)		142,021
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	307,842	$	(153,128	)	$	154,714	$	296,472	$	(141,424	)	$	155,048

Amortization expense was as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2018		2017		2018		2017
Amortization expense – cost of revenue	$	2,489	$	1,696	$	4,969	$	3,337
Amortization expense – operating expenses		3,893		3,347		7,591		6,196
Total amortization expense	$	6,382	$	5,043	$	12,560	$	9,533

Estimated amortization expense for each of the five succeeding years and thereafter as of June 29, 2018 was as follows (in thousands):