Segment and Geographic Area Information

Roper’s operations are reported in four segments around common customers, markets, sales channels, technologies and common cost opportunities. The segments are: RF Technology, Medical & Scientific Imaging, Industrial Technology and Energy Systems & Controls. The RF Technology segment provides comprehensive application management software, software-as-a-service applications and products and systems that utilize RFID communication technology. The Medical & Scientific Imaging segment offers medical products and software and high performance digital imaging products and software. Products included within the Industrial Technology segment are water and fluid handling pumps, flow measurement and metering equipment, industrial valves and controls, materials analysis equipment and consumables and industrial leak testing. The Energy Systems & Controls segment’s products include control systems, equipment and consumables for fluid properties testing, vibration sensors and other non-destructive inspection and measurement products and services. Roper’s management structure and internal reporting are aligned consistently with these four segments.

Prior to the end of the first quarter of 2019, Roper’s management expects to finalize the realignment of the Company’s reportable segments. Roper’s management believes the new reporting structure continues to provide a transparent view into the operations of the Company while more closely aligning the structure with management’s view given the evolution the Company’s portfolio has undergone in recent years. The Company expects to report the first quarter 2019 interim financial statements under the new segment structure with prior periods recasted to reflect the change.

There were no material transactions between Roper’s business segments during 2018, 2017 and 2016. Sales between geographic areas are primarily of finished products and are accounted for at prices intended to represent third-party prices. Operating profit by business segment and by geographic area is defined as net revenues less operating costs and expenses. These costs and expenses do not include unallocated corporate administrative expenses. Items below income from operations on Roper’s statement of earnings are not allocated to business segments.

Operating assets are those assets used primarily in the operations of each business segment or geographic area. Corporate assets are principally comprised of cash and cash equivalents, deferred tax assets, recoverable insurance claims, deferred compensation assets and property and equipment.

Selected financial information by business segment for 2018, 2017 and 2016 follows:



	RF Technology		Medical & Scientific Imaging		Industrial Technology		Energy Systems & Controls		Corporate			Total
2018
Net revenues	$	2,168.4	$	1,522.4	$	900.0	$	600.4	$	—		$	5,191.2
Operating profit	613.8		521.0		284.3		180.8		(203.5		)	1,396.4
Assets:
Operating assets	622.7		266.2		202.9		171.7		6.1			1,269.6
Intangible assets, net	7,881.1		4,300.7		483.8		523.3		—			13,188.9
Other ¹	163.8		368.2		49.4		106.3		103.3			791.0
Total												15,249.5
Capital expenditures	23.3		15.4		6.6		3.7		0.1			49.1
Capitalized software expenditures	9.4		0.1		—		—		—			9.5
Depreciation and other amortization	218.1		115.5		16.9		15.7		0.8			367.0
2017
Net revenues	$	1,862.1	$	1,410.4	$	783.7	$	551.3	$	—		$	4,607.5
Operating profit	479.3		486.6		235.0		151.1		(141.8		)	1,210.2
Assets:
Operating assets	518.4		309.2		195.4		175.8		7.4			1,206.2
Intangible assets, net	6,660.9		4,590.7		499.5		544.4		—			12,295.5
Other	192.1		131.1		76.2		196.5		218.8			814.7
Total												14,316.4
Capital expenditures	20.1		18.8		5.7		3.2		1.0			48.8
Capitalized software expenditures	10.0		0.8		—		—		—			10.8
Depreciation and other amortization	191.9		118.6		17.1		16.8		0.6			345.0
2016
Net revenues	$	1,210.3	$	1,362.8	$	706.6	$	510.2	$	—		$	3,789.9
Operating profit	372.5		477.5		202.5		129.6		(127.5		)	1,054.6
Assets:
Operating assets	487.9		282.4		182.4		164.4		11.8			1,128.9
Intangible assets, net	6,635.0		4,660.3		493.9		513.8		—			12,303.0
Other	156.4		154.8		88.1		135.0		358.7			893.0
Total												14,324.9
Capital expenditures	11.5		16.1		6.6		2.2		0.9			37.3
Capitalized software expenditures	—		2.8		—		—		—			2.8
Depreciation and other amortization	82.7		119.2		18.6		19.7		0.3			240.5

¹Includes Operating assets of $91.8 and Intangible assets, net of $159.4 associated with the Scientific Imaging businesses classified as held for sale. See Note 2 of the Notes to Consolidated Financial Statements included in this Annual Report.

Summarized data for Roper’s U.S. and foreign operations (principally in Canada, Europe and Asia) for 2018, 2017 and 2016, based upon the country of origin of the Roper entity making the sale, was as follows:



	United States		Non-U.S.		Eliminations			Total
2018
Sales to unaffiliated customers	$	4,176.2	$	1,015.0	$	—		$	5,191.2
Sales between geographic areas	143.9		137.0		(280.9		)	—
Net revenues	$	4,320.1	$	1,152.0	$	(280.9	)	$	5,191.2
Long-lived assets ¹	$	145.2	$	30.0	$	—		$	175.2
2017
Sales to unaffiliated customers	$	3,679.1	$	928.4	$	—		$	4,607.5
Sales between geographic areas	133.2		187.7		(320.9		)	—
Net revenues	$	3,812.3	$	1,116.1	$	(320.9	)	$	4,607.5
Long-lived assets	$	144.0	$	31.4	$	—		$	175.4
2016
Sales to unaffiliated customers	$	2,978.5	$	811.4	$	—		$	3,789.9
Sales between geographic areas	137.3		109.4		(246.7		)	—
Net revenues	$	3,115.8	$	920.8	$	(246.7	)	$	3,789.9
Long-lived assets	$	146.0	$	21.0	$	—		$	167.0

¹Excludes Long-lived assets of $7.6 associated with the Scientific Imaging businesses classified as held for sale. See Note 2 of the Notes to Consolidated Financial Statements included in this Annual Report.

Export sales from the U.S. during the years ended December 31, 2018, 2017 and 2016 were $578, $513 and $460, respectively. In the year ended December 31, 2018, these exports were shipped primarily to Asia (34%), Europe (27%), Canada (16%), Middle East (13%) and other (10%).

Sales to customers outside the U.S. accounted for a significant portion of Roper’s revenues. Sales are attributed to geographic areas based upon the location where the product is ultimately shipped. Roper’s net revenues for the years ended December 31, 2018, 2017 and 2016 are shown below by region, except for Canada, which is presented separately as it is the only country in which Roper has had greater than 4% of total revenues for any of the three years presented:



	RF Technology		Medical & Scientific Imaging		Industrial Technology		Energy Systems & Controls		Total
2018
Canada	$	90.8	$	19.2	$	73.7	$	27.6	$	211.3
Europe	152.2		284.9		102.4		140.5		680.0
Asia	14.9		129.8		65.2		140.0		349.9
Middle East	50.9		13.4		3.5		34.3		102.1
Rest of the world	30.9		27.5		24.4		52.0		134.8
Total	$	339.7	$	474.8	$	269.2	$	394.4	$	1,478.1
2017
Canada	$	73.3	$	23.5	$	64.1	$	26.2	$	187.1
Europe	140.4		244.0		92.4		119.4		596.2
Asia	10.2		119.2		58.3		137.7		325.4
Middle East	61.4		11.1		4.8		35.2		112.5
Rest of the world	26.2		22.7		21.5		49.6		120.0
Total	$	311.5	$	420.5	$	241.1	$	368.1	$	1,341.2
2016
Canada	$	52.7	$	22.0	$	60.5	$	22.4	$	157.6
Europe	71.7		228.1		89.2		119.0		508.0
Asia	12.0		111.8		52.1		126.8		302.7
Middle East	50.6		10.1		3.0		37.5		101.2
Rest of the world	17.0		21.6		20.7		46.2		105.5
Total	$	204.0	$	393.6	$	225.5	$	351.9	$	1,175.0