Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

16. Segment Information

Reportable Segments

The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines.

We operate in three reportable segments: Photonics (formerly known as Laser Products), Vision (formerly known as Vision Technologies), and Precision Motion. The reportable segments and their principal activities consist of the following:

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including CO2 laser sources, laser scanning and laser beam delivery products, to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, metrology, medical and life science imaging, and medical laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Vision

The Vision segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions, to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Precision Motion

The Precision Motion segment designs, manufactures and markets optical encoders, precision motor and motion control technology, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Revenue, gross profit, operating income (loss) from continuing operations, depreciation and amortization, accounts receivable and inventory by reportable segments are as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Revenue
Photonics	$	174,158	$	168,331	$	177,726
Vision		122,250		124,725		122,187
Precision Motion		88,350		80,542		64,793
Total	$	384,758	$	373,598	$	364,706

	Year Ended December 31,
	2016			2015			2014
Gross Profit
Photonics	$	76,696		$	73,602		$	74,224
Vision		47,181			48,966			48,678
Precision Motion		40,044			36,709			28,333
Unallocated Corporate and Shared Services		(1,469	)		(1,387	)		(1,068	)
Total	$	162,452		$	157,890		$	150,167

	Year Ended December 31,
	2016			2015			2014
Operating Income (Loss) from Continuing Operations
Photonics	$	34,825		$	35,971		$	33,053
Vision		(1,277	)		(2,057	)		(43,079	)
Precision Motion		21,101			16,877			13,023
Unallocated Corporate and Shared Services		(22,086	)		(21,858	)		(19,803	)
Total	$	32,563		$	28,933		$	(16,806	)

	Year Ended December 31,
	2016		2015		2014
Depreciation and Amortization
Photonics	$	6,738	$	6,083	$	6,481
Vision		10,402		8,599		13,254
Precision Motion		2,439		2,533		1,943
Unallocated Corporate and Shared Services		1,394		2,981		2,743
Total	$	20,973	$	20,196	$	24,421

	December 31,
	2016		2015
Accounts Receivable
Photonics	$	28,886	$	21,763
Vision		22,885		21,691
Precision Motion		11,998		13,734
Total accounts receivable	$	63,769	$	57,188
Inventory
Photonics	$	28,976	$	29,501
Vision		20,656		19,583
Precision Motion		10,113		10,482
Total inventory	$	59,745	$	59,566
Total segment assets	$	123,514	$	116,754

	December 31,
	2016		2015
Total Assets
Total segment assets		123,514		116,754
Cash and cash equivalents		68,108		59,959
Prepaid income taxes and income taxes receivable		2,058		2,510
Prepaid expenses and other current assets		5,570		5,989
Property, plant and equipment, net		35,421		40,550
Deferred tax assets		8,593		7,885
Other assets		12,502		12,673
Intangible assets, net		61,743		66,269
Goodwill		108,128		103,456
Total	$	425,637	$	416,045

Geographic Information

The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue to these customers is as follows (in thousands, except percentage data):

	Year Ended December 31,
	2016					2015					2014
	Revenue		% of Total			Revenue		% of Total			Revenue		% of Total
United States	$	154,756		40.2	%	$	154,825		41.4	%	$	140,973		38.7	%
Germany		55,940		14.5			54,743		14.7			59,029		16.2
Rest of Europe		51,705		13.4			48,277		12.9			54,308		14.9
China		44,225		11.5			38,491		10.3			40,792		11.2
Rest of Asia-Pacific		60,104		15.6			62,467		16.7			58,830		16.1
Other		18,028		4.8			14,795		4.0			10,774		2.9
Total	$	384,758		100.0	%	$	373,598		100.0	%	$	364,706		100.0	%

Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):

	December 31,
	2016		2015
United States	$	29,509	$	34,907
Europe		4,588		4,014
China		1,286		1,593
Asia-Pacific and other		38		36
Total	$	35,421	$	40,550

Significant Customers

No customer accounted for greater than 10% of the Company’s sales during the years ended December 31, 2016, 2015 or 2014.