Business Segment Information

12 Months Ended

Sep. 28, 2019

Our Chief Executive Officer (the Chief Operating Decision Maker) regularly reviews financial information for our two operating segments, Test & Simulation and Sensors. Test & Simulation manufactures and sells equipment and related software and services which are used by customers to characterize a product's mechanical properties or performance. Sensors manufactures and sells high-performance sensors which provide measurements of vibration, pressure, position, force and sound in a variety of applications.

In evaluating each segment's performance, our Chief Executive Officer focuses on income from operations. This measure excludes interest income and expense, income taxes and other non-operating items. Corporate expenses, including costs associated with various support functions such as human resources, information technology, legal, finance and accounting, and general and administrative costs are allocated to the reportable segments on the basis of revenue. The accounting policies of the reportable segments are the same as those described in Note 1 and Note 3 of this Annual Report on Form 10-K.

Intersegment revenue is based on standard costs with reasonable mark-ups established between the reportable segments. All significant intersegment amounts are eliminated to arrive at consolidated financial results.

Financial information by reportable segment is as follows:



	2019			2018			2017
Revenue
Test & Simulation	$	558,908		$	464,924		$	504,087
Sensors	334,976			314,269			283,868
Intersegment eliminations	(1,366		)	(1,161		)	—
Total revenue	$	892,518		$	778,032		$	787,955

Income from Operations
Test & Simulation	$	34,080		$	19,225		$	28,622
Sensors	45,620			45,980			26,206
Intersegment eliminations	5			(33		)	—
Total income from operations	$	79,705		$	65,172		$	54,828

Identifiable Assets
Test & Simulation	$	419,403		$	299,242		$	374,698
Sensors	878,602			840,187			814,994
Intersegment eliminations	(28		)	(33		)	—
Total identifiable assets	$	1,297,977		$	1,139,396		$	1,189,692

Goodwill
Test & Simulation	$	61,153		$	24,631		$	25,109
Sensors	367,886			344,644			344,653
Total goodwill	$	429,039		$	369,275		$	369,762

Capital Expenditures
Test & Simulation	$	18,792		$	8,111		$	13,281
Sensors	11,733			4,210			4,517
Total capital expenditures	$	30,525		$	12,321		$	17,798

Depreciation and Amortization
Test & Simulation	$	19,529		$	16,353		$	17,275
Sensors	18,446			18,139			18,248
Total depreciation and amortization	$	37,975		$	34,492		$	35,523

Geographic information is as follows:



	2019		2018		2017
Revenue
U.S.	$	306,574	$	245,909	$	246,679
Europe	224,982		223,236		192,491
China	189,227		165,421		174,044
Asia, excluding China	131,771		113,953		142,644
Americas, excluding U.S.	39,964		29,513		32,097
Total revenue	$	892,518	$	778,032	$	787,955

Property and Equipment, Net
U.S.	$	81,119	$	69,782	$	78,080
Europe	13,927		15,130		15,296
China	5,424		4,858		5,542
Asia, excluding China	613		499		1,012
Total property and equipment, net	$	101,083	$	90,269	$	99,930

Revenue by geographic area is presented based on customer location. The U.S. and China were the only countries with revenue in excess of 10% of total revenue during fiscal years 2019, 2018 and 2017. No single customer accounted for 10% or more of consolidated revenue for fiscal years 2019, 2018 and 2017. Revenue is not reported for each of our products and services because it is impracticable to do so.