Goodwill and Intangible Assets

3 Months Ended

Mar. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets

Goodwill

Goodwill is recorded when the consideration paid 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 2024 and noted no impairment.

The following table summarizes changes in goodwill during the three months ended March 28, 2025 (in thousands):


	Amount
Balance at beginning of the period	$	584,098
Effect of foreign exchange rate changes		4,956
Balance at end of the period	$	589,054

Goodwill by reportable segment as of March 28, 2025 was as follows (in thousands):


	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	432,461		$	307,822		$	740,283
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	312,954		$	276,100		$	589,054

Goodwill by reportable segment as of December 31, 2024 was as follows (in thousands):


	Reportable Segment
	Automation Enabling Technologies			Medical Solutions			Total
Goodwill	$	439,980		$	295,347		$	735,327
Accumulated impairment of goodwill		(119,507	)		(31,722	)		(151,229	)
Total	$	320,473		$	263,625		$	584,098

Intangible Assets

Intangible assets as of March 28, 2025 and December 31, 2024, respectively, are summarized as follows (in thousands):


	March 28, 2025							December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizable intangible assets:
Patents and developed technologies	$	220,852	$	(164,259	)	$	56,593	$	218,867	$	(159,041	)	$	59,826
Customer relationships		267,582		(166,044	)		101,538		265,156		(158,938	)		106,218
Trademarks and trade names		23,600		(17,034	)		6,566		23,367		(16,594	)		6,773
Amortizable intangible assets		512,034		(347,337	)		164,697		507,390		(334,573	)		172,817
Non-amortizable intangible assets:
Trade names		13,027		—			13,027		13,027		—			13,027
Total intangible assets	$	525,061	$	(347,337	)	$	177,724	$	520,417	$	(334,573	)	$	185,844

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. Amortization expense was as follows (in thousands):


	Three Months Ended
	March 28,		March 29,
	2025		2024
Amortization expense – cost of revenue	$	3,561	$	3,692
Amortization expense – operating expenses		5,554		5,750
Total amortization expense	$	9,115	$	9,442

As of March 28, 2025, estimated amortization expense for each of the five succeeding years and thereafter was as follows (in thousands):


Year Ending December 31,	Cost of Revenue		Operating Expenses		Total
2025 (remainder of year)	$	10,739	$	16,762	$	27,501
2026		13,455		20,037		33,492
2027		10,616		15,894		26,510
2028		8,875		12,802		21,677
2029		6,095		9,196		15,291
Thereafter		6,813		33,413		40,226
Total	$	56,593	$	108,104	$	164,697