10)	Goodwill and Intangible Assets

Goodwill

The Company’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. The Company assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results.

Effective July 1, 2018, the Company reassigned goodwill to certain reporting units within the Light & Motion reportable segment resulting from a reorganization of the composition of goodwill reporting units. The goodwill was reassigned to the reporting units affected using the relative fair value approach. In conjunction with this goodwill reassignment, the Company performed an interim quantitative impairment test as of July 1, 2018 for all of its reporting units and concluded that the fair values of each reporting unit exceeded their respective carrying values.

Effective January 1, 2019, the Company reassigned goodwill to certain reporting units within the Light & Motion reportable segment resulting from a reorganization of the composition of goodwill reporting units. The goodwill was reassigned to the reporting units affected using the relative fair value approach. The Company also concluded that the fair value of each reporting unit exceeded its respective carrying value.

The changes in the carrying amount of goodwill and accumulated impairment loss during the three months ended March 31, 2019 and year ended December 31, 2018 were as follows:


	Three Months Ended March 31, 2019									Twelve Months Ended December 31, 2018
	Gross Carrying Amount			Accumulated Impairment Loss			Net			Gross Carrying Amount			Accumulated Impairment Loss			Net
Beginning balance at January 1	$	731,272		$	(144,276	)	$	586,996		$	735,323		$	(144,276	)	$	591,047
Acquired goodwill⁽¹⁾		471,403			—			471,403			—			—			—
Foreign currency translation		(1,068	)		—			(1,068	)		(4,051	)		—			(4,051	)

Ending balance at March 31, 2019 and December 31, 2018	$	1,201,607		$	(144,276	)	$	1,057,331		$	731,272		$	(144,276	)	$	586,996

⁽¹⁾	During the three months ended March 31, 2019, the Company recorded $471,403 of goodwill related to the ESI Merger.

Intangible Assets

Components of the Company’s intangible assets are comprised of the following:


As of March 31, 2019:	Gross		Accumulated Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology⁽¹⁾	$	448,831	$	(105	)	$	(146,614	)	$	(162	)	$	301,950
Customer relationships⁽¹⁾		308,144		(1,406	)		(68,738	)		(819	)		237,181
Patents, trademarks, trade names and other⁽¹⁾		120,895		—			(40,976	)		41			79,960

	$	877,870	$	(1,511	)	$	(256,328	)	$	(940	)	$	619,091

⁽¹⁾

During the three months ended March 31, 2019, the Company recorded $318,600 of separately identified intangible assets related to the ESI Merger, of which $276,400 was completed technology, $25,400 was customer relationships and $16,800 was trademarks, trade names and backlog. Separately, on January 1, 2019, the Company reclassified $6,428 of gross favorable lease assets and $3,445 of related accumulated amortization from patents, trademarks, trade names and other to the right-of-use asset line in the balance sheet.


As of December 31, 2018:	Gross		Impairment Charges			Accumulated Amortization			Foreign Currency Translation			Net
Completed technology	$	172,431	$	(105	)	$	(137,283	)	$	(73	)	$	34,970
Customer relationships		282,744		(1,406	)		(63,788	)		(269	)		217,281
Patents, trademarks, trade names and other		110,523		—			(42,954	)		(13	)		67,556

	$	565,698	$	(1,511	)	$	(244,025	)	$	(355	)	$	319,807

Aggregate amortization expense related to acquired intangibles for the three months ended March 31, 2019 and 2018 was $15,727 and $11,190, respectively. The net amortization expense from favorable lease commitments for the three months ended March 31, 2019 and 2018 was net of $0 and $407, respectively. Aggregate net amortization expense related to acquired intangible assets for future years is as follows:


Year	Amount
2019 (remaining)	$	51,638
2020		55,751
2021		47,958
2022		45,480
2023		45,121
2024		44,204
Thereafter		273,039