18. Segment Information

Reportable Segments

The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers.

We operate in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities consist of the following:

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. 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.

Vision

The Vision segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; surgical displays and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal printers; spectrometry technologies; and embedded touch screen solutions. 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, precision motor and motion control technology, air bearing spindles and precision machined components 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.

Reportable Segment Financial Information

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

	Year Ended December 31,
	2017		2016		2015
Revenue
Photonics	$	232,359	$	174,158	$	168,331
Vision		183,074		122,250		124,725
Precision Motion		105,857		88,350		80,542
Total	$	521,290	$	384,758	$	373,598

	Year Ended December 31,
	2017			2016			2015
Gross Profit
Photonics	$	106,117		$	76,696		$	73,602
Vision		69,249			47,181			48,966
Precision Motion		46,564			40,044			36,709
Unallocated Corporate and Shared Services		(1,399	)		(1,469	)		(1,387	)
Total	$	220,531		$	162,452		$	157,890

	Year Ended December 31,
	2017			2016			2015
Operating Income (Loss) from Continuing Operations
Photonics	$	51,289		$	34,825		$	35,971
Vision		7,883			(1,277	)		(2,057	)
Precision Motion		27,146			21,101			16,877
Unallocated Corporate and Shared Services		(29,123	)		(22,086	)		(21,858	)
Total	$	57,195		$	32,563		$	28,933

	Year Ended December 31,
	2017		2016		2015
Depreciation and Amortization
Photonics	$	13,806	$	6,738	$	6,083
Vision		13,590		10,402		8,599
Precision Motion		2,308		2,439		2,533
Unallocated Corporate and Shared Services		1,054		1,394		2,981
Total	$	30,758	$	20,973	$	20,196

	December 31,
	2017		2016		2015
Accounts Receivable
Photonics	$	33,490	$	28,886	$	21,763
Vision		36,089		22,885		21,691
Precision Motion		11,903		11,998		13,734
Total accounts receivable	$	81,482	$	63,769	$	57,188
Inventory
Photonics		44,451		28,976		29,501
Vision		33,836		20,656		19,583
Precision Motion		12,991		10,113		10,482
Total inventory	$	91,278	$	59,745	$	59,566
Total segment assets	$	172,760	$	123,514	$	116,754

	December 31,
	2017		2016		2015
Total Assets
Total segment assets	$	172,760	$	123,514	$	116,754
Cash and cash equivalents		100,057		68,108		59,959
Prepaid income taxes and income taxes receivable		4,387		2,058		2,510
Prepaid expenses and other current assets		10,675		5,570		5,989
Property, plant and equipment, net		61,718		35,421		40,550
Deferred tax assets		7,052		8,593		7,885
Other assets		4,018		12,502		12,673
Intangible assets, net		155,048		61,743		66,269
Goodwill		210,988		108,128		103,456
Total	$	726,703	$	425,637	$	416,045

Geographic Information

The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers is as follows (in thousands, except percentage data):

	Year Ended December 31,
	2017					2016					2015
	Revenue		% of Total			Revenue		% of Total			Revenue		% of Total
United States	$	220,583		42.3	%	$	154,756		40.2	%	$	154,825		41.4	%
Germany		68,003		13.0			55,940		14.5			54,743		14.7
Rest of Europe		81,001		15.5			51,705		13.4			48,277		12.9
China		56,128		10.8			44,225		11.5			38,491		10.3
Rest of Asia-Pacific		84,727		16.3			60,104		15.6			62,467		16.7
Other		10,848		2.1			18,028		4.8			14,795		4.0
Total	$	521,290		100.0	%	$	384,758		100.0	%	$	373,598		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,
	2017		2016		2015
United States	$	29,920	$	29,509	$	34,907
Europe		30,621		4,588		4,014
China		1,127		1,286		1,593
Asia-Pacific and other		50		38		36
Total	$	61,718	$	35,421	$	40,550

Significant Customers

No customer accounted for greater than 10% of the Company’s revenue during the years ended December 31, 2017, 2016 or 2015.