Segment and Geographic Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems and ID products that are used to automate the manufacture and tracking of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, papers, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense.

The following table summarizes information about the Company’s segments (in thousands):

	MVSD		SISD		Reconciling Items			Consolidated
Year Ended December 31, 2014
Product revenue	$	409,017	$	42,049				$	451,066
Service revenue	17,432		17,772					35,204
Depreciation and amortization	10,580		1,138		$	749		12,467
Goodwill and intangibles	87,059		5,329		—			92,388
Operating income	156,552		15,598		(28,487		)	143,663
Year Ended December 31, 2013
Product revenue	$	298,186	$	28,600				$	326,786
Service revenue	9,465		17,635					27,100
Depreciation and amortization	9,569		1,078		$	455		11,102
Goodwill and intangibles	90,718		5,694		—			96,412
Operating income	99,383		8,990		(22,005		)	86,368
Year Ended December 31, 2012
Product revenue	$	263,308	$	32,280				$	295,588
Service revenue	10,388		18,303					28,691
Depreciation and amortization	9,505		963		$	390		10,858
Goodwill and intangibles	90,390		6,069		—			96,459
Operating income	89,378		11,941		(17,912		)	83,407

Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world.

The following table summarizes information about geographic areas (in thousands):

	United States		Europe		Japan		Other		Total
Year Ended December 31, 2014
Product revenue	$	132,298	$	192,463	$	38,952	$	87,353	$	451,066
Service revenue	15,143		12,536		4,434		3,091		35,204
Long-lived assets	118,991		11,385		1,551		9,904		141,831
Year Ended December 31, 2013
Product revenue	$	103,610	$	104,497	$	33,763	$	84,916	$	326,786
Service revenue	13,505		6,012		4,103		3,480		27,100
Long-lived assets	118,619		5,059		1,732		10,276		135,686
Year Ended December 31, 2012
Product revenue	$	87,877	$	95,376	$	38,151	$	74,184	$	295,588
Service revenue	13,248		6,083		5,043		4,317		28,691
Long-lived assets	120,596		4,939		2,229		6,342		134,106

Revenue is presented geographically based upon the customer’s country of domicile.

In 2014, revenue from a single MVSD customer accounted for 14% of total revenue. In 2013 and 2012, no customer accounted for greater than 10% of total revenue.