Segment and Geographic Information

12 Months Ended

Dec. 31, 2012

Segment and Geographic Information

NOTE 18: Segment and Geographic 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 and ID products that are used to automate the manufacture and tracking of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing or distribution 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, papers, 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 Company’s segments (in thousands):

	MVSD		SISD		Reconciling Items			Consolidated
Year Ended December 31, 2012
Product revenue	$	263,308	$	32,280				$	295,588
Service revenue		10,388		18,303					28,691
Depreciation and amortization		9,505		963	$	390			10,858
Goodwill and intangibles		90,390		6,069		—			96,459
Operating income		89,378		11,941		(17,912	)		83,407
Year Ended December 31, 2011
Product revenue	$	264,956	$	32,354				$	297,310
Service revenue		8,717		15,887					24,604
Depreciation and amortization		8,445		908	$	403			9,756
Goodwill and intangibles		94,322		6,617		—			100,939
Operating income		94,201		10,301		(19,147	)		85,355
Year Ended December 31, 2010
Product revenue	$	234,052	$	29,411				$	263,463
Service revenue		13,362		13,866					27,228
Depreciation and amortization		8,683		757	$	369			9,809
Goodwill and intangibles		98,252		7,082		—			105,334
Operating income		88,342		5,064		(17,693	)		75,713

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.

No customer accounted for greater than 10% of revenue in 2012, 2011, or 2010.

The following table summarizes information about geographic areas (in thousands):

	United States		Europe		Japan		Other		Total
Year Ended December 31, 2012
Product revenue	$	87,877	$	95,376	$	38,151	$	74,184	$	295,588
Service revenue		13,248		6,083		5,043		4,317		28,691
Long-lived assets		120,596		4,939		2,229		6,342		134,106

Year Ended December 31, 2011
Product revenue	$	87,166	$	100,984	$	45,295	$	63,865	$	297,310
Service revenue		10,796		6,343		4,147		3,318		24,604
Long-lived assets		121,174		10,811		2,773		952		135,710

Year Ended December 31, 2010
Product revenue	$	74,105	$	83,432	$	55,269	$	50,657	$	263,463
Service revenue		12,493		7,611		3,986		3,138		27,228
Long-lived assets		122,760		10,387		2,457		885		136,489

Revenue is presented geographically based upon the customer’s country of domicile.