Segment Information

9 Months Ended

Sep. 28, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems that are used to control the manufacture of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, paper, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense.

The following table summarizes information about the segments (in thousands):

Three-months Ended September 28, 2014	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	148,970	$	9,661	$	—		$	158,631
Service revenue	5,386		5,339		—			10,725
Operating income	62,250		3,925		(6,747		)	59,428
Nine-months Ended September 28, 2014	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	316,657	$	28,485	$	—		$	345,142
Service revenue	11,291		12,654		—			23,945
Operating income	124,726		9,509		(21,642		)	112,593

Three-months Ended September 29, 2013	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	75,184	$	8,280	$	—		$	83,464
Service revenue	2,758		4,566		—			7,324
Operating income	26,038		2,916		(5,575		)	23,379
Nine-months Ended September 29, 2013	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	215,515	$	22,319	$	—		$	237,834
Service revenue	7,151		13,205		—			20,356
Operating income	71,641		6,875		(16,983		)	61,533

Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world.