Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

16. Segment Information

Reportable Segments

The Company evaluates the performance of, and allocates resources to, its segments based on sales, gross profit and operating profit. The Company reports assets on a consolidated basis to the chief operating decision maker, which is the Chief Executive Officer. The Company’s reportable segments have been identified based on commonality of end markets, customers, applications and technologies amongst the Company’s individual product lines, which is consistent with the Company’s operating structure, associated management structure, and management compensation programs.

We operate in three reportable segments: Laser Products, Medical Technologies, and Precision Motion. The reportable segments and their principal activities consist of the following:

Laser Products

The Laser Products segment designs, manufactures and markets photonics-based solutions to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, and medical and life science imaging and laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The business sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Medical Technologies

The Medical Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, thermal printers, and light and color measurement instrumentation to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Precision Motion

The Precision Motion segment designs, manufactures and markets optical encoders, air bearing spindles and precision machined componentsto customers worldwide. The vast majority of the segment’s product offerings are sold into the electronics, industrial and, to a lesser extent, the medical markets. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Sales, gross profit, operating income (loss) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands):

	Year Ended December 31,
	2014		2013		2012
Sales
Laser Products	$	177,726	$	166,598	$	158,639
Medical Technologies		122,187		90,276		25,915
Precision Motion		64,793		60,036		59,242
Total	$	364,706	$	316,910	$	243,796

	Year Ended December 31,
	2014			2013			2012
Gross Profit
Laser Products	$	74,224		$	68,819		$	66,498
Medical Technologies		48,678			35,824			13,149
Precision Motion		28,333			27,778			26,796
Corporate, Shared Services and Unallocated		(1,068	)		(194	)		(925	)
Total	$	150,167		$	132,227		$	105,518

	Year Ended December 31,
	2014			2013			2012
Operating Income (Loss) from Continuing Operations
Laser Products	$	33,053		$	25,143		$	24,480
Medical Technologies		(43,079	)		3,566			8,285
Precision Motion		13,023			12,062			9,482
Corporate, Shared Services and Unallocated		(19,803	)		(21,325	)		(21,985	)
Total	$	(16,806	)	$	19,446		$	20,262

	Year Ended December 31,
	2014		2013		2012
Depreciation and Amortization
Laser Products	$	6,481	$	6,335	$	6,448
Medical Technologies		13,254		8,808		702
Precision Motion		1,943		1,979		2,066
Corporate, Shared Services and Unallocated		2,743		2,828		3,467
Total	$	24,421	$	19,950	$	12,683

Geographic Information

The Company aggregates geographic sales based on the customer location where products are shipped. Sales to these customers are as follows (in thousands, except percentage data):

	Year Ended December 31,
	2014					2013					2012
	Sales		% of Total			Sales		% of Total			Sales		% of Total
United States	$	140,973		38.7	%	$	107,892		34.0	%	$	76,437		31.4	%
Germany		59,029		16.2			56,287		17.8			32,822		13.5
Rest of Europe		54,308		14.9			45,698		14.4			41,466		17.0
China		40,792		11.2			37,651		11.9			21,001		8.6
Rest of Asia-Pacific		58,830		16.1			57,802		18.2			65,262		26.8
Other		10,774		2.9			11,580		3.7			6,808		2.7
Total	$	364,706		100.0	%	$	316,910		100.0	%	$	243,796		100.0	%

Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):

	December 31,
	2014		2013
United States	$	32,988	$	23,305
Europe		5,318		5,617
China		1,705		2,196
Asia-Pacific and other		77		185
Total	$	40,088	$	31,303

Significant Customers

No customer accounted for greater than 10% of the Company’s sales during the years ended December 31, 2014, 2013 or 2012.