Goodwill and Intangible Assets

3 Months Ended

Jan. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

During the quarter ended January 1, 2022, 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 our fourth fiscal quarter.

The changes in the carrying amount of goodwill, all of which is in the OEM Laser Sources ("OLS") segment, for the period from October 2, 2021 to January 1, 2022 are as follows (in thousands):


	OEM Laser Sources
Balance as of October 2, 2021	$	105,261


Translation adjustments	(1,476)
Balance as of January 1, 2022	$	103,785

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


	January 1, 2022						October 2, 2021
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Existing technology	$	5,846	$	(2,677)	$	3,169	$	39,524	$	(35,522)	$	4,002
Customer relationships	21,666		(12,797)		8,869		22,101		(12,586)		9,515


Production know-how	2,300		(1,492)		808		2,300		(1,377)		923
In-process research & development	300		—		300		300		—		300
Total	$	30,112	$	(16,966)	$	13,146	$	64,225	$	(49,485)	$	14,740

For accounting purposes, when an intangible asset is fully amortized, it is removed from the disclosure schedule.

Amortization expense for intangible assets for the three months ended January 1, 2022 and January 2, 2021 was $1.4 million and $2.6 million, respectively. The change in the accumulated amortization also includes $0.2 million decrease and $1.8 million increase of foreign exchange impact for the three months ended January 1, 2022 and January 2, 2021, respectively.

At January 1, 2022, estimated amortization expense for the remainder of fiscal 2022, the next five succeeding fiscal years and all fiscal years thereafter are as follows (in thousands):


	Estimated Amortization Expense
2022 (remainder)	$	2,532
2023	3,373
2024	2,589
2025	2,272
2026	1,925
2027	155

Total(1)	$	12,846

(1) Excluding in-process research & development

COHERENT INC 10-Q