Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill is tested for impairment on an annual basis and between annual tests if events or circumstances indicate that an impairment loss may have occurred, and we write down these assets when impaired. We perform our annual impairment tests during the fourth quarter of each fiscal year using the opening balance sheet as of the first day of the fourth quarter, with any resulting impairment recorded in the fourth quarter of the fiscal year.

We evaluate long-lived assets and amortizable intangible assets whenever events or changes in business circumstances or our planned use of assets indicate that their carrying amounts may not be fully recoverable or that their useful lives are no longer appropriate. Reviews are performed to determine whether the carrying values of assets are impaired based on comparison to the undiscounted expected future cash flows identifiable to such long-lived and amortizable intangible assets. If the comparison indicates that impairment exists, the impaired asset is written down to its fair value.

During the three months ended December 31, 2011, we noted no indications of impairment or triggering events to cause us to review goodwill for potential impairment. We will conduct our annual goodwill testing during the fourth fiscal quarter.

The changes in the carrying amount of goodwill by segment for the period from October 1, 2011 to December 31, 2011 are as follows (in thousands):



	Commercial Lasers and Components			Specialty Lasers and Systems			Total
Balance as of October 1, 2011	$	6,365		$	69,589		$	75,954
Translation adjustments and other	(2		)	(1,196		)	(1,198		)
Balance as of December 31, 2011	$	6,363		$	68,393		$	74,756

Components of our amortizable intangible assets are as follows (in thousands):



	December 31, 2011							October 1, 2011
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Existing technology	$	52,011	$	(42,646	)	$	9,365	$	52,283	$	(41,615	)	$	10,668
Patents	6,982		(6,956		)	26		7,246		(7,220		)	26
Customer lists	9,748		(5,248		)	4,500		9,807		(5,142		)	4,665
Trade name	3,483		(2,539		)	944		3,566		(2,504		)	1,062
Non-compete agreement	831		(764		)	67		837		(784		)	53
Production know-how	910		(627		)	283		910		(621		)	289
In-process research & development	1,220		—			1,220		1,217		—			1,217
Total	$	75,185	$	(58,780	)	$	16,405	$	75,866	$	(57,886	)	$	17,980

Amortization expense for intangible assets for the three months ended December 31, 2011 and January 1, 2011 was $1.6 million and $2.1 million, respectively, which includes $1.2 million and $1.4 million, respectively, for amortization of existing technology and production know-how.

At December 31, 2011, estimated amortization expense for the remainder of fiscal 2012, the next five succeeding fiscal years and all fiscal years thereafter are as follows (in thousands):



	Estimated Amortization Expense
2012 (remainder)	$	4,710
2013	4,857
2014	3,373
2015	2,044
2016	1,257
2017	154
Thereafter	10
Total	$	16,405

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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