Note 17 - Segment Reporting

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 17 – Segment Reporting

The Company’s reportable segments are based on the internal reporting used by the Company’s CEO, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Company’s reportable segments are based upon geographic region, consisting of the United States and Europe. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs that are global in nature and that the Company does not allocate directly to its operating segments.

Revenue in the United States is derived from Injection Molding, CNC Machining, 3D Printing and Sheet Metal product lines. Revenue in Europe is derived from Injection Molding, CNC Machining, and 3D Printing product lines. Revenue in Japan is derived from Injection Molding and CNC Machining product lines. Injection Molding revenue consists of sales of custom injection molds and injection-molded parts. CNC Machining revenue consists of sales of CNC-machined and lathe-turned customer parts. 3D Printing revenue consists of sales of 3D-printed parts. Sheet Metal revenue consists of sales of fabricated sheet metal parts.

The accounting policies of the reportable segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not allocated to business segments.

Beginning in 2020, the Company's CODM made a decision to view certain research and development costs by geographic region. As a result, costs previously included in the Corporate Unallocated and Japan category have been included in the respective geographic regions. All periods presented have been restated to reflect this change.

Revenue and income from operations by reportable segment are as follows:

	Year Ended December 31,
(in thousands)	2020		2019		2018
Revenue:
United States	$	345,708	$	360,205	$	350,535
Europe		74,796		82,805		80,889
Japan		13,891		15,718		14,172
Total revenue	$	434,395	$	458,728	$	445,596

	Year Ended December 31,
(in thousands)	2020			2019			2018
Income from Operations:
United States	$	98,762		$	108,594		$	115,710
Europe		11,707			15,077			16,747
Corporate Unallocated and Japan		(50,633	)		(43,815	)		(43,557	)
Total income from operations	$	59,836		$	79,856		$	88,898

Total long-lived assets, expenditures for additions to long-lived assets and depreciation and amortization expense are as follows:

	December 31,		December 31,		December 31,
(in thousands)	2020		2019		2018
Long-lived assets:
United States	$	215,721	$	210,171	$	185,979
Europe		59,388		45,019		34,577
Japan		7,557		8,522		7,445
Total long-lived assets	$	282,666	$	263,712	$	228,001

	Year Ended December 31,
(in thousands)	2020		2019		2018
Expenditures for additions to long-lived assets:
United States	$	29,984	$	45,123	$	78,762
Europe		16,574		14,743		7,576
Japan		452		2,364		766
Total expenditures for additions to long-lived assets	$	47,010	$	62,230	$	87,104

	Year Ended December 31,
(in thousands)	2020		2019		2018
Depreciation and Amortization:
United States	$	25,744	$	24,767	$	21,117
Europe		5,024		4,746		4,679
Japan		1,826		1,351		958
Total depreciation and amortization	$	32,594	$	30,864	$	26,754