Business Segment Information

12 Months Ended

Oct. 03, 2020

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION 

Our Interim 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 testing and simulation solutions including hardware, software and services that are used by customers in product development to characterize a product's mechanical properties along with simulation systems for human response features. Sensors manufactures and sells precision sensors that provide measurements of vibration, pressure, position, force and sound in a variety of applications.

In evaluating each segment's performance, our Interim 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:

	2020		2019		2018
Revenue
Test & Simulation	$	490,634	$	558,908	$	464,924
Sensors	339,223		334,976		314,269
Intersegment eliminations	(1,271)		(1,366)		(1,161)
Total revenue	$	828,586	$	892,518	$	778,032
Income from Operations
Test & Simulation 1	$	(90,455)	$	34,080	$	19,225
Sensors	(157,030)		45,620		45,980
Intersegment eliminations	(2)		5		(33)
Total income from operations	$	(247,487)	$	79,705	$	65,172
Identifiable Assets
Test & Simulation 2	$	442,707	$	419,403	$	299,242
Sensors 2	707,554		878,602		840,187
Intersegment eliminations	(30)		(28)		(33)
Total identifiable assets	$	1,150,231	$	1,297,977	$	1,139,396
Goodwill
Test & Simulation 3	$	48,840	$	61,153	$	24,631
Sensors 3	179,800		367,886		344,644
Total goodwill	$	228,640	$	429,039	$	369,275
Capital Expenditures
Test & Simulation	$	10,203	$	18,792	$	8,111
Sensors	13,690		11,733		4,210
Total capital expenditures	$	23,893	$	30,525	$	12,321
Depreciation and Amortization
Test & Simulation	$	26,150	$	19,529	$	16,353
Sensors	20,537		18,446		18,139
Total depreciation and amortization	$	46,687	$	37,975	$	34,492

1    Test & Simulation income from operations for fiscal year 2020 includes $11,848 of pre-tax severance and related expense. See Note 17 for additional information on restructuring and related costs.

2    Test & Simulation and Sensors identifiable assets for fiscal year 2020 reflects the impact of $89,814 and $201,574, respectively, in impairment of asset charges. See Note 1 for additional information on our impairment analysis.

3    Test & Simulation and Sensors goodwill for fiscal year 2020 reflects the impact of $53,344 and $188,174, respectively, in impairment of asset charges. See Note 1 for additional information on our goodwill impairment analysis.

Geographic information is as follows:

	2020		2019		2018
Revenue
U.S.	$	288,276	$	306,574	$	245,909
Europe	236,428		224,982		223,236
China	161,622		189,227		165,421
Asia, excluding China	106,910		131,771		113,953
Americas, excluding U.S.	35,350		39,964		29,513
Total revenue	$	828,586	$	892,518	$	778,032
Property and Equipment, Net
U.S.	$	77,491	$	81,119	$	69,782
Europe	12,311		13,927		15,130
China	4,750		5,424		4,858
Asia, excluding China	558		613		499
Total property and equipment, net	$	95,110	$	101,083	$	90,269

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 2020, 2019 and 2018. No single customer accounted for 10% or more of consolidated revenue for fiscal years 2020, 2019 and 2018. Revenue is not reported for each of our products and services because it is impracticable to do so.