Goodwill and Intangible Assets (Tables)

6 Months Ended

Jul. 03, 2020

The following table summarizes changes in goodwill during the six months ended July 3, 2020 (in thousands):

Balance at beginning of the period	$	274,710
Net working capital adjustments from a prior-year acquisition		1,118
Effect of foreign exchange rate changes		(2,011	)
Balance at end of the period	$	273,817

Goodwill by reportable segment as of July 3, 2020 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	212,876		$	160,320		$	51,850		$	425,046
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	110,415		$	128,598		$	34,804		$	273,817

Goodwill by reportable segment as of December 31, 2019 was as follows (in thousands):

	Reportable Segment
	Photonics			Vision			Precision Motion			Total
Goodwill	$	213,413		$	160,086		$	52,440		$	425,939
Accumulated impairment of goodwill		(102,461	)		(31,722	)		(17,046	)		(151,229	)
Total	$	110,952		$	128,364		$	35,394		$	274,710

Intangible assets as of July 3, 2020 and December 31, 2019, respectively, are summarized as follows (in thousands):

	July 3, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	158,055	$	(102,368	)	$	55,687	$	159,217	$	(97,523	)	$	61,694
Customer relationships		160,216		(83,978	)		76,238		161,807		(78,206	)		83,601
Customer backlog		—		—			—		2,316		(2,316	)		—
Trademarks and trade names		17,663		(10,445	)		7,218		17,871		(10,018	)		7,853
Amortizable intangible assets		335,934		(196,791	)		139,143		341,211		(188,063	)		153,148
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Totals	$	348,961	$	(196,791	)	$	152,170	$	354,238	$	(188,063	)	$	166,175

Amortization expense was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 3,		June 28,		July 3,		June 28,
	2020		2019		2020		2019
Amortization expense – cost of revenue	$	2,716	$	2,446	$	5,450	$	4,757
Amortization expense – operating expenses		3,410		3,772		6,855		7,770
Total amortization expense	$	6,126	$	6,218	$	12,305	$	12,527

Estimated amortization expense for each of the five succeeding years and thereafter as of July 3, 2020 was as follows (in thousands):