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Goodwill and Intangible Assets | 9 Months Ended
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Oct. 01, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill Goodwill is recorded when the consideration for a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. The Company tests its goodwill balances for impairment annually as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist. The Company performed the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2021 and noted no impairment. The following table summarizes changes in goodwill during the nine months ended October 1, 2021 (in thousands):
Balance at beginning of the period | $ | 285,980 |
Goodwill acquired from acquisitions |  | 213,915 |
Effect of foreign exchange rate changes |  | (6,955 | )
Balance at end of the period | $ | 492,940 |
Goodwill by reportable segment as of October 1, 2021 was as follows (in thousands):
| Reportable Segment |  |  |  |  |
| Photonics |  |  | Vision |  |  | Precision Motion |  |  | Total |
Goodwill | $ | 215,453 |  |  | $ | 161,885 |  |  | $ | 266,831 |  |  | $ | 644,169 |
Accumulated impairment of goodwill |  | (102,461 | ) |  |  | (31,722 | ) |  |  | (17,046 | ) |  |  | (151,229 | )
Total | $ | 112,992 |  |  | $ | 130,163 |  |  | $ | 249,785 |  |  | $ | 492,940 |
Goodwill by reportable segment as of December 31, 2020 was as follows (in thousands):
| Reportable Segment |  |  |  |  |
| Photonics |  |  | Vision |  |  | Precision Motion |  |  | Total |
Goodwill | $ | 218,517 |  |  | $ | 165,195 |  |  | $ | 53,497 |  |  | $ | 437,209 |
Accumulated impairment of goodwill |  | (102,461 | ) |  |  | (31,722 | ) |  |  | (17,046 | ) |  |  | (151,229 | )
Total | $ | 116,056 |  |  | $ | 133,473 |  |  | $ | 36,451 |  |  | $ | 285,980 |
Intangible Assets Intangible assets as of October 1, 2021 and December 31, 2020, respectively, are summarized as follows (in thousands):
| October 1, 2021 |  |  | December 31, 2020 |
| Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Patents and developed technologies | $ | 190,485 |  |  | $ | (118,535 | ) |  | $ | 71,950 |  |  | $ | 164,430 |  |  | $ | (110,572 | ) |  | $ | 53,858 |
Customer relationships |  | 229,369 |  |  |  | (101,546 | ) |  |  | 127,823 |  |  |  | 167,429 |  |  |  | (92,892 | ) |  |  | 74,537 |
Customer backlog |  | 6,753 |  |  |  | (563 | ) |  |  | 6,190 |  |  |  | — |  |  |  | — |  |  |  | — |
Trademarks and trade names |  | 24,052 |  |  |  | (12,015 | ) |  |  | 12,037 |  |  |  | 18,367 |  |  |  | (11,268 | ) |  |  | 7,099 |
Amortizable intangible assets |  | 450,659 |  |  |  | (232,659 | ) |  |  | 218,000 |  |  |  | 350,226 |  |  |  | (214,732 | ) |  |  | 135,494 |
Non-amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  | 13,027 |  |  |  | — |  |  |  | 13,027 |  |  |  | 13,027 |  |  |  | — |  |  |  | 13,027 |
Totals | $ | 463,686 |  |  | $ | (232,659 | ) |  | $ | 231,027 |  |  | $ | 363,253 |  |  | $ | (214,732 | ) |  | $ | 148,521 |
All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortizat ion expense was as follows (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
| 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Amortization expense – cost of revenue | $ | 3,316 |  |  | $ | 2,820 |  |  | $ | 9,275 |  |  | $ | 8,270 |
Amortization expense – operating expenses |  | 4,139 |  |  |  | 3,533 |  |  |  | 11,300 |  |  |  | 10,388 |
Total amortization expense | $ | 7,455 |  |  | $ | 6,353 |  |  | $ | 20,575 |  |  | $ | 18,658 |
Estimated amortization expense for each of the five succeeding years and thereafter as of October 1, 2021 was as follows (in thousands):
Year Ending December 31, |  | Cost of Revenue |  |  | Operating Expenses |  |  | Total |
2021 (remainder of year) |  | $ | 4,029 |  |  | $ | 5,294 |  |  | $ | 9,323 |
2022 |  |  | 13,854 |  |  |  | 27,032 |  |  |  | 40,886 |
2023 |  |  | 12,544 |  |  |  | 20,998 |  |  |  | 33,542 |
2024 |  |  | 10,170 |  |  |  | 17,631 |  |  |  | 27,801 |
2025 |  |  | 8,579 |  |  |  | 14,917 |  |  |  | 23,496 |
Thereafter |  |  | 22,774 |  |  |  | 60,178 |  |  |  | 82,952 |
Total |  | $ | 71,950 |  |  | $ | 146,050 |  |  | $ | 218,000 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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