Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

NOTE 15 BUSINESS SEGMENT INFORMATION

The operating segments reported below are the segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company's Chief Executive Officer, who is the Company's chief operating decision maker, in deciding how to allocate resources and in assessing performance.

The Company develops, manufactures and markets its products within three distinct business segments, its PPT Division, its Lasers Division and its Ophir Division.

The PPT Division's products and systems are sold to end users in a wide range of markets, including the microelectronics, scientific research, aerospace and defense/security, life and health sciences and industrial markets. In addition, the division sells subsystems to third parties that integrate these products into larger systems, particularly for microelectronics and life and health sciences applications. The products sold by this division include photonics instruments and systems, precision positioning systems and subsystems, vibration isolation systems and subsystems, optical components, optical hardware, and opto-mechanical subassemblies. The PPT Division also offers automated systems and subsystems for advanced applications in the manufacturing of solar panels and communications and electronic devices, including microwave, optical, radio frequency and multi-chip modules.

The Lasers Division offers a broad array of laser technology products and services to OEM and end-user customers across a wide range of applications and markets, including the microelectronics, scientific research, life and health sciences and industrial markets. The lasers and laser-based systems include ultrafast lasers and amplifiers, diode-pumped solid-state lasers, high-energy pulsed lasers, tunable lasers and gas lasers.

The Ophir Division offers a wide range of products to OEM and end-user customers across a wide range of applications and markets, including scientific research, aerospace and defense/security, life and health sciences and industrial markets. The division's primary product offerings consist of precision infrared optics and lens assemblies, laser measurement instrumentation and three-dimensional non-contact measurement equipment.

The Company measured operating income (loss) reported for each business segment, which included only the costs that were directly attributable to the operations of that segment, and excluded certain unallocated operating expenses (including expenses related to the amortization of acquired intangible assets), other charges and gains, interest and other expense, net, and income taxes.

Selected segment financial information for the Company's reportable segments for the years ended December 31, 2011, January 1, 2011 and January 2, 2010 were as follows:

(In thousands)	PPT		Lasers			Ophir
	Division		Division			Division		Total
Year ended December 31, 2011
Sales to external customers	$	325,972	$	191,528		$	27,554	$	545,054
Depreciation and amortization	$	6,035	$	3,632		$	1,574	$	11,241
Segment income	$	74,936	$	19,150		$	1,510	$	95,596
Segment assets	$	210,776	$	131,799		$	304,564	$	647,139
Expenditures for long-lived assets	$	6,109	$	2,423		$	991	$	9,523
Year ended January 1, 2011
Sales to external customers	$	297,666	$	182,121		$	—	$	479,787
Depreciation and amortization	$	7,039	$	3,583		$	—	$	10,622
Loss on disposal assets and related costs	$	542	$	—		$	—	$	542
Segment income	$	62,759	$	14,275		$	—	$	77,034
Segment assets	$	237,231	$	80,433		$	—	$	317,664
Expenditures for long-lived assets	$	4,815	$	854		$	—	$	5,669
Year ended January 2, 2010
Sales to external customers	$	219,645	$	147,344		$	—	$	366,989
Depreciation and amortization	$	7,341	$	4,422		$	—	$	11,763
Impairment charges	$	360	$	—		$	—	$	360
Loss on disposal of diode laser assets and related costs	$	—	$	4,355		$	—	$	4,355
Segment income (loss)	$	30,245	$	(5,567	)	$	—	$	24,678
Segment assets	$	212,551	$	102,065		$	—	$	314,616
Expenditures for long-lived assets	$	3,317	$	6,605		$	—	$	9,922

The segment income reported for the Company's PPT Division for 2010 included a loss on the sale of assets and related costs, totaling $0.5 million related to the sale of the Company's Hilger Crystals Limited subsidiary (see Note 2).

The segment income reported for the Company's PPT Division for 2009 included an impairment charge of $0.4 million related to the write off of in-process research and development related to the New Focus acquisition. The segment loss reported for the Company's Lasers Division for 2009 included a loss on the sale of assets and related costs, totaling $4.4 million related to the divestiture of the Company's diode laser operations in July 2009.

The following reconciles segment income to consolidated income (loss) before income taxes:

		0,00000			0,00000			0,00000
	Year Ended
(In thousands)	December 31,			January 1,			January 2,
	2011			2011			2010
Segment income	$	95,596		$	77,034		$	24,678
Unallocated operating expenses		(41,773	)		(24,312	)		(35,916	)
Foreign currency translation gain from sale of subsidiary		7,198			—			—
Recovery of note receivable and other amounts related to previously discontinued operations, net		619			—			101
Gain (loss) on extinguishment of debt		(582	)		—			328
Interest and other expense, net		(10,550	)		(8,481	)		(8,564	)
Consolidated income (loss) before income taxes	$	50,508		$	44,241		$	(19,373	)

The following reconciles segment depreciation and amortization, total assets and expenditures to consolidated amounts:

		00,00000		00,00000		00,00000
	As of or for the Year Ended
(In thousands)	December 31,		January 1,		January 2,
	2011		2011		2010
Depreciation and amortization for reportable segments	$	11,241	$	10,622	$	11,763
Depreciation and amortization for assets held at corporate		12,758		8,046		8,169
Total depreciation and amortization	$	23,999	$	18,668	$	19,932
Assets of reportable segments	$	647,139	$	317,664	$	314,616
Assets held at corporate, primarily cash and cash equivalents, restricted cash and marketable securities		116,930		238,726		178,791
Total assets	$	764,069	$	556,390	$	493,407
Expenditures for long-lived assets for reportable segments	$	9,523	$	5,669	$	9,922
Expenditures for assets held at corporate		4,091		1,745		1,211
Total expenditures for long-lived assets	$	13,614	$	7,414	$	11,133

Selected financial information for the Company's operations by geographic area was as follows:

	As of or for the Year Ended
(In thousands)	December 31,		January 1,		January 2,
	2011		2011		2010
Geographic area net sales:
United States	$	240,736	$	233,479	$	169,947
Europe		134,537		102,369		97,886
Pacific Rim		133,702		123,364		79,770
Other		36,079		20,575		19,386
	$	545,054	$	479,787	$	366,989
Geographic area long-lived assets:
Israel	$	42,042	$	—
United States		36,082		34,939
Europe		8,201		7,565
Other		3,548		3,656
	$	89,873	$	46,160