Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

18. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer.  Our CODM utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. 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 revenue by specific product was impracticable due to the highly customized and extensive portfolio of technologies offered to customers.

Based upon the information provided to the CODM, the Company has determined it operates 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, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, 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; visualization solutions; wireless, recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; 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 and inductive encoders, precision motor and motion control sub-assemblies, servo drives, air bearings, and air bearing spindles 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), depreciation and amortization expenses, accounts receivable and inventories by reportable segments were as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Revenue
Photonics	$	199,613	$	230,457	$	249,339
Vision		261,650		271,407		232,902
Precision Motion		129,360		124,235		132,096
Total	$	590,623	$	626,099	$	614,337

	Year Ended December 31,
	2020			2019			2018
Gross Profit
Photonics	$	89,060		$	105,845		$	117,109
Vision		100,267			105,228			87,198
Precision Motion		58,279			53,326			59,477
Unallocated Corporate and Shared Services		(3,089	)		(2,314	)		(2,256	)
Total	$	244,517		$	262,085		$	261,528

	Year Ended December 31,
	2020			2019			2018
Operating Income (Loss)
Photonics	$	34,001		$	41,990		$	59,285
Vision		16,354			21,007			8,991
Precision Motion		31,663			22,339			31,674
Unallocated Corporate and Shared Services		(26,130	)		(30,054	)		(28,937	)
Total	$	55,888		$	55,282		$	71,013

	Year Ended December 31,
	2020		2019		2018
Depreciation and Amortization Expenses
Photonics	$	11,261	$	12,139	$	12,042
Vision		21,374		21,161		20,657
Precision Motion		5,443		4,712		3,627
Unallocated Corporate and Shared Services		215		268		726
Total	$	38,293	$	38,280	$	37,052

	December 31,
	2020		2019
Accounts Receivable
Photonics	$	27,328	$	31,046
Vision		33,194		43,941
Precision Motion		14,532		16,091
Total accounts receivable	$	75,054	$	91,078
Inventories
Photonics	$	35,878	$	45,227
Vision		41,137		50,074
Precision Motion		15,722		21,317
Total inventories	$	92,737	$	116,618
Total segment assets	$	167,791	$	207,696

	December 31,
	2020		2019
Total Assets
Total segment assets	$	167,791	$	207,696
Cash and cash equivalents		125,054		78,944
Prepaid income taxes and income taxes receivable		3,203		5,905
Prepaid expenses and other current assets		8,125		11,967
Property, plant and equipment, net		78,676		77,556
Operating lease assets		34,444		35,180
Deferred tax assets		10,491		8,890
Other assets		2,894		2,713
Intangible assets, net		148,521		166,175
Goodwill		285,980		274,710
Total	$	865,179	$	869,736

Geographic Information

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

	Year Ended December 31,
	2020					2019					2018
	Revenue		% of Total			Revenue		% of Total			Revenue		% of Total
United States	$	225,760		38.2	%	$	254,279		40.6	%	$	242,243		39.4	%
Germany		83,765		14.2			82,032		13.1			88,027		14.3
Rest of Europe		127,040		21.5			129,643		20.7			105,608		17.2
China		70,557		11.9			59,512		9.5			66,414		10.8
Rest of Asia-Pacific		74,334		12.6			89,588		14.3			104,300		17.0
Other		9,167		1.6			11,045		1.8			7,745		1.3
Total	$	590,623		100.0	%	$	626,099		100.0	%	$	614,337		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,
	2020		2019
United States	$	25,436	$	28,750
Germany		36,314		32,376
Rest of Europe		14,759		14,303
China		1,809		2,029
Rest of Asia-Pacific		358		98
Total	$	78,676	$	77,556

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

	Year Ended December 31,
	2020			2019			2018
Medical		56	%		55	%		50	%
Advanced Industrial		44	%		45	%		50	%
Total		100	%		100	%		100	%

The majority of the revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of the revenue from the Vision segment is generated from sales to customers in the medical market.

Significant Customers

During the year ended December 31, 2020, an OEM customer primarily from the Vision segment accounted for approximately 11% of our consolidated revenue.  No customer accounted for greater than 10% of the Company’s revenue during the years ended December 31, 2019 or 2018.