Segment Reporting

12 Months Ended

Dec. 31, 2018

SEGMENT REPORTING

We have three reporting segments: 3D Manufacturing, Construction BIM, and Emerging Verticals. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reporting segments are aggregated in the Emerging Verticals category.

We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems in each of these reporting segments. These activities represent more than 99% of consolidated sales.

Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reporting segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly-titled measures reported by other companies.

Our segment structure presented below represents a change from the prior year as further described in Note 1 “Summary of Significant Accounting Policies”. The amounts related to our reporting segment information for the year ended December 31, 2017 have been restated throughout this Annual Report on Form 10-K to reflect such changes in our reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2016 were restated but were not impacted by such changes in our reporting segments. Each of our reporting segments continue to employ consistent accounting policies.

The following tables present information about our reporting segments, including a reconciliation of total segment profit to income (loss) from continuing operations included in the consolidated statements of operations for the years ended 2018, 2017, and 2016:



	3D Manufacturing		Construction BIM		Emerging Verticals		Total
2018
Total sales to external customers	$	264,430	$	96,185	$	43,012	$	403,627
Segment profit	$	80,775	$	27,513	$	3,137	$	111,425

General and administrative							47,652
Depreciation and amortization							18,313
Research and development							39,706
Income from operations							$	5,754



	3D Manufacturing		Construction BIM		Emerging Verticals		Total
2017
Total sales to external customers	$	243,464	$	86,349	$	31,104	$	360,917
Segment profit	$	77,537	$	21,077	$	2,479	$	101,093

General and administrative							43,807
Depreciation and amortization							16,588
Research and development							35,376
Income from operations							$	5,322



	3D Manufacturing		Construction BIM		Emerging Verticals		Total
2016
Total sales to external customers	$	236,313	$	65,056	$	24,215	$	325,584
Segment profit	$	73,656	$	14,799	$	9,635	$	98,090

General and administrative							40,813
Depreciation and amortization							13,868
Research and development							30,125
Income from operations							$	13,284

Total sales to external customers is based upon the geographic location of the customer.



	For the Years Ended December 31,
	2018		2017		2016
Total sales to external customers
United States	$	156,242	$	141,595	$	133,924
Americas-Other	15,086		13,531		11,815
Germany	53,251		49,860		44,041
Europe-Other	74,010		65,201		57,710
Japan	37,607		35,270		32,530
Asia-Other	67,431		55,460		45,564
	$	403,627	$	360,917	$	325,584

Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable.



	As of December 31,
	2018		2017		2016
Long-Lived Assets
United States	$	61,557	$	54,703	$	54,157
Americas-Other	10,702		13,834		13,486
Germany	30,154		26,611		23,734
Europe-Other	24,935		9,124		6,949
Japan	1,039		558		460
Asia-Other	2,358		2,246		1,915
	$	130,745	$	107,076	$	100,701