Geographic Information

36 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Geographic Information

GEOGRAPHIC INFORMATION

Historically, we operated in five verticals—3D Manufacturing, Construction Building Information Modeling (“Construction BIM”), Public Safety Forensics, 3D Design and Photonics—and had three reporting segments—3D Manufacturing, Construction BIM and Emerging Verticals. During the second half of 2019, our Chief Executive Officer (“CEO”) and FARO's management team formulated and began to implement a new comprehensive strategic plan for our business. Our strategic planning process included extensive conversations with employees, customers, investors and suppliers to identify both where the Company can provide sustained and differentiated customer value and where opportunities existed to improve operating efficiencies. We identified areas of our business that needed enhanced focus or change in order to improve our efficiency and cost structure. As part of our strategic plan, we reassessed and redefined our go-to-market strategy, refocused our marketing engagement with our customers, re-evaluated our hardware and software product portfolio and examined how key decisions are made throughout our global organization. Additionally, we focused on other organizational optimization efforts, including the simplification of our overly complex management structure.

As part of our new strategic plan, and based on the recommendation of our CEO, who is also our Chief Operating Decision Maker (“CODM”), in the fourth quarter of 2019, we eliminated our vertical structure and began reorganizing the Company into a functional structure. Our executive leadership team is now comprised of functional leaders in areas such as sales, marketing, operations, research and development and general and administrative, and resources are allocated to each function at a consolidated unit level. We no longer have separate business units, or segment managers or vertical leaders who report to the CODM with respect to operations, operating results or planning for levels or components below the total Company level. Instead, our CODM now allocates resources and evaluates performance on a Company-wide basis. Based on these changes, commencing with the fourth quarter of 2019, we are now reporting as one reporting segment that develops, manufactures, markets, supports and sells CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems. Our reporting segment sells into a variety of end markets, including automotive, aerospace, metal and machine fabrication, architecture, engineering, construction and public safety. These activities represent more than 99% of consolidated sales.

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

	For the Years Ended December 31,
	2020		2019		2018
Total sales to external customers
United States and Canada	$	119,769	$	151,646	$	156,242
Americas-Other	9,057		14,110		15,086
Germany	46,166		52,083		53,251
Europe-Other	45,224		70,196		74,010
Japan	4,998		33,361		37,607
China	31,748		32,934		36,130
Asia-Other	46,806		27,435		31,301
	$	303,768	$	381,765	$	403,627

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,
	2020		2019		2018
Long-Lived Assets
United States	$	42,729	$	45,225	$	61,557
Americas-Other	10,415		10,889		10,702
Germany	26,671		26,295		30,154
Europe-Other	10,966		4,984		24,935
Japan	1,192		1,423		1,039
Asia-Other	1,960		2,313		2,358
	$	93,933	$	91,129	$	130,745