Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2019

During the first quarter of 2019, we implemented a realignment of our reportable segment structure. The new reportable segments continue to provide a transparent view into Roper’s operations and capital deployment strategy and objectives. The Company’s new reporting segment structure reinforces Roper’s diversified, niche market strategy by reporting based upon business models instead of end markets. The four new reportable segments (and businesses within each; including changes due to acquisitions and divestitures since the realignment) are as follows:


–	Application Software - Aderant, CBORD, CliniSys, Data Innovations, Deltek, Horizon, IntelliTrans, PowerPlan, Strata, Sunquest


–	Network Software & Systems - ConstructConnect, DAT, Foundry, Inovonics, iPipeline, iTradeNetwork, Link Logistics, MHA, RF IDeas, SHP, SoftWriters, TransCore


–	Measurement & Analytical Solutions ⁽¹⁾ - Alpha, CIVCO Medical Solutions, CIVCO Radiotherapy, Dynisco, FMI, Hansen, Hardy, IPA, Logitech, Neptune, Northern Digital, Struers, Technolog, Uson, Verathon


–	Process Technologies - AMOT, CCC, Cornell, FTI, Metrix, PAC, Roper Pump, Viatran, Zetec

⁽¹⁾The Measurement & Analytical Solutions segment includes the results of the divestitures completed in 2019 through the transaction date for (i) the Imaging businesses, sold to Teledyne on February 5, 2019 and (ii) Gatan sold to AMETEK on October 29, 2019.

There were no material transactions between Roper’s business segments during 2019, 2018 and 2017. 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 Consolidated Statements 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 2019, 2018 and 2017 follows:



	Application Software		Network Software & Systems		Measurement &Analytical Solutions		Process Technologies		Corporate			Total
2019
Net revenues	$	1,588.0	$	1,529.5	$	1,596.4	$	652.9	$	—		$	5,366.8
Operating profit	405.4		538.5		501.1		225.8		(172.4		)	1,498.4
Assets:
Operating assets	382.2		472.0		347.0		205.7		4.4			1,411.3
Intangible assets, net	7,833.6		5,871.8		1,420.0		357.7		—			15,483.1
Other	168.5		62.5		120.4		69.0		794.1			1,214.5
Total												18,108.9
Capital expenditures	17.4		15.1		17.3		2.7		0.2			52.7
Capitalized software expenditures	9.7		0.5		—		—		—			10.2
Depreciation and other amortization	230.2		132.9		40.3		12.0		0.6			416.0
2018
Net revenues	$	1,452.7	$	1,345.2	$	1,705.6	$	687.7	$	—		$	5,191.2
Operating profit	358.0		484.4		523.9		233.6		(203.5		)	1,396.4
Assets:
Operating assets	392.6		338.3		336.2		196.4		6.1			1,269.6
Intangible assets, net	7,799.9		3,582.0		1,444.5		362.5		—			13,188.9
Other ¹	163.6		38.4		391.2		94.5		103.3			791.0
Total												15,249.5
Capital expenditures	19.0		8.3		15.4		6.3		0.1			49.1
Capitalized software expenditures	9.1		0.4		—		—		—			9.5
Depreciation and other amortization	212.8		98.1		42.6		12.7		0.8			367.0
2017
Net revenues	$	1,222.2	$	1,254.1	$	1,531.3	$	599.9	$	—		$	4,607.5
Operating profit	279.0		438.7		446.0		188.3		(141.8		)	1,210.2
Assets:
Operating assets	288.1		318.3		402.7		189.7		7.4			1,206.2
Intangible assets, net	6,668.1		3,598.7		1,649.7		379.0		—			12,295.5
Other	180.4		45.6		184.8		185.1		218.8			814.7
Total												14,316.4
Capital expenditures	17.9		13.3		13.5		3.1		1.0			48.8
Capitalized software expenditures	9.9		0.8		0.1		—		—			10.8
Depreciation and other amortization	183.5		99.9		47.5		13.5		0.6			345.0

¹Includes Operating assets of $91.8 and Intangible assets, net of $159.4 associated with the Gatan business and 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 2019, 2018 and 2017, based upon the country of origin of the Roper entity making the sale, was as follows:



	United States		Non-U.S.		Eliminations			Total
2019
Sales to unaffiliated customers	$	4,342.6	$	1,024.2	$	—		$	5,366.8
Sales between geographic areas	124.9		139.3		(264.2		)	—
Net revenues	$	4,467.5	$	1,163.5	$	(264.2	)	$	5,366.8
Long-lived assets	$	164.6	$	33.2	$	—		$	197.8
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

¹Excludes Long-lived assets of $7.6 associated with the Gatan business and 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, 2019, 2018 and 2017 were $531.8, $578.0 and $512.5, respectively. In the year ended December 31, 2019, these exports were shipped primarily to Asia (33%), Europe (24%), Canada (18%), Middle East (13%) and other (12%).

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, 2019, 2018 and 2017 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:



	Application Software		Network Software & Systems		Measurement &Analytical Solutions		Process Technologies		Total
2019
Canada	$	41.0	$	71.1	$	81.4	$	28.9	$	222.4
Europe	188.8		36.7		307.2		113.8		646.5
Asia	3.5		18.8		185.0		108.0		315.3
Middle East	8.6		37.5		13.1		44.4		103.6
Rest of the world	25.8		9.5		45.3		55.2		135.8
Total	$	267.7	$	173.6	$	632.0	$	350.3	$	1,423.6
2018
Canada	$	38.5	$	58.5	$	79.3	$	35.0	$	211.3
Europe	188.6		12.2		361.7		117.5		680.0
Asia	3.2		11.0		220.3		115.4		349.9
Middle East	4.7		48.6		14.4		34.4		102.1
Rest of the world	29.5		7.8		42.5		55.0		134.8
Total	$	264.5	$	138.1	$	718.2	$	357.3	$	1,478.1
2017
Canada	$	26.6	$	52.9	$	72.9	$	34.7	$	187.1
Europe	176.5		11.0		310.6		98.1		596.2
Asia	2.4		7.3		205.9		109.8		325.4
Middle East	4.8		58.8		13.4		35.5		112.5
Rest of the world	23.2		6.1		42.0		48.7		120.0
Total	$	233.5	$	136.1	$	644.8	$	326.8	$	1,341.2