Segment Disclosure

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Disclosure

17.     Segment Disclosure

ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing business performance. The Company’s chief operating decision-making group is the Executive Staff, which is comprised of the Chief Executive Officer and his direct reports (CODM).

In late 2013, the Company underwent a reorganization into two operating segments, Grid and IIoT, which resulted in, among other things, a complex movement affecting a majority of the Company's employees, a significant modification to the Company's departmental organization structure, and a completely new way of presenting and reviewing operating performance for the new organizations. Prior to this point, the Company was not structured nor was it managed in a “product line” manner. Therefore, for years prior to 2013, the Company’s organizational structure was set up to report and track information for a single reporting unit, the Company as a whole. Thus, management believes that restatement of information for the Grid business for years prior to 2013 is impracticable. In September 2014, the Company sold its Grid business to S&T, thus reducing the number of reportable segments from two to one. For the years ending December 31, 2014 and 2013, the Grid business is captured in discontinued operations.

The Company operates in one principal industry segment - the IIoT segment, which is its reportable segment. The IIoT segment sells products and services aimed at Embedded Control Platforms, such as LONWORKS and IzoT, which include components, control nodes, and development software, and which are sold typically to Original Equipment Manufacturers (OEMs) to build into their industrial application solutions. These platforms allow a single device to be brought to market as a LONWORKS®, BACnet®, or other protocol-supporting device; and it can be used with any underlying wired or wireless communications link, such as Ethernet, RS-485, Wi-Fi, 15.4, or Echelon’s free topology (FT) standard. The IzoT platform provides a smooth migration path for legacy devices to the IIoT. The product portfolio includes Smart Transceivers, SmartServer Controllers, LNS and OpenLNS Operating Systems, Outdoor Lighting Controllers, SmartServer Segment Controllers and PL/RF Bridges.

The Company operates in three main geographic areas: the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific / Japan (“APJ”). Each geographic area provides products and services to the Company’s customers located in the respective region. The Company’s long-lived assets include property and equipment, goodwill, purchased technology, and deposits on its leased facilities. Long-lived assets are attributed to geographic areas based on the country where the assets are located. As of December 31, 2014 and December 31, 2013, long-lived assets of approximately $15.6 million and $24.6 million, respectively, were domiciled in the United States. Long-lived assets for all other locations are not material to the consolidated financial statements.

In North America, the Company sells its products primarily through a direct sales organization and select third-party electronics representatives. Outside North America, the Company sells its products through direct sales organizations in EMEA and APJ, value-added resellers, and local distributors. Revenues are attributed to geographic areas based on the country where the products are shipped to or the services are delivered. Summary revenue information by geography for the years endedDecember 31, 2014, 2013 and 2012 is as follows (in thousands):

	Year ended December 31,
	2014		2013		2012
Americas
United States	$	10,680	$	11,787	$	32,981
Other Americas	2,074		1,380		2,485
Total Americas	12,754		13,167		35,466
EMEA
Germany	10,733		12,789		13,097
Finland	77		95		38,958
Denmark	66		55		10,939
Other EMEA	3,618		6,955		21,195
Total EMEA	14,494		19,894		84,189
APJ
China	$	3,225	$	5,286	$	6,848
Other APJ	$	8,257	$	7,510	$	7,514
Total APJ	$	11,482	$	12,796	$	14,362
Total	$	38,730	$	45,857	$	134,017

For information regarding the Company’s major customers, please refer to Note 9, Significant Customers.