Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2014

Business Segments [Abstract]

Business Segments [Text Block]

(13) Segment and Geographic Area Information

Roper's operations are reported in four segments around common customers, markets, sales channels, technologies and common cost opportunities. The segments are: Industrial Technology, Energy Systems and Controls, Medical & Scientific Imaging, and RF Technology. Products included within the Industrial Technology segment are water and fluid handling pumps, flow measurement and metering equipment, industrial valves and controls, materials analysis equipment and consumables and industrial leak testing. The Energy Systems and Controls segment's products include control systems, equipment and consumables for fluid properties testing, vibration sensors and other non-destructive inspection and measurement products and services. The Medical and Scientific Imaging segment offers medical products and software, high performance digital imaging products and software and handheld and vehicle mounted computers. The RF Technology segment includes products and systems related to comprehensive toll and traffic systems and processing, security and access control, campus card systems, software-as-a-service applications in the freight matching and food industries and utility metering and remote monitoring applications.  Roper's management structure and internal reporting are aligned consistently with these four segments.

There were no material transactions between Roper's business segments during 2014, 2013 and 2012. Sales between geographic areas are primarily of finished products and are accounted for at prices intended to represent third-party prices. Operating profit by business segment and by geographic area is defined as net sales less operating costs and expenses. These costs and expenses do not include unallocated corporate administrative expenses. Items below income from operations on Roper's statement of earnings are not allocated to business segments.

Identifiable assets are those assets used primarily in the operations of each business segment or geographic area. Corporate assets are principally comprised of cash and cash equivalents, deferred tax assets, recoverable insurance claims, deferred compensation assets, unamortized deferred financing costs and property and equipment.

Selected financial information by business segment for 2014, 2013 and 2012 follows (in thousands):

	Industrial Technology		Energy Systems and Controls		Medical and Scientific Imaging		RF Technology		Corporate			Total
2014
Net sales	$	827,145	$	691,813	$	1,080,309	$	950,227	$	-		$	3,549,494
Operating profit		247,596		203,021		375,867		271,177		(98,188	)		999,473
Assets:
Operating assets		220,115		219,284		232,380		270,458		7,002			949,239
Intangible assets, net		557,593		568,670		3,842,180		1,720,977		-			6,689,420
Other		120,681		223,831		147,529		65,636		216,598			774,275
Total													8,412,934
Capital expenditures		10,713		4,634		11,430		10,521		346			37,644
Depreciation and other amortization		21,135		23,281		93,683		58,702		483			197,284
2013
Net sales	$	779,564	$	651,920	$	902,281	$	904,363	$	-		$	3,238,128
Operating profit		223,053		183,679		268,172		253,532		(86,075	)		842,361
Assets:
Operating assets		232,505		214,926		237,681		266,026		15,325			966,463
Intangible assets, net		583,822		597,250		3,682,465		1,725,597		-			6,589,134
Other		75,215		167,879		152,211		62,576		171,503			629,384
Total													8,184,981
Capital expenditures		17,043		4,952		10,231		10,190		112			42,528
Depreciation and other amortization		21,551		21,353		85,177		60,590		519			189,190
2012
Net sales	$	795,240	$	646,116	$	703,835	$	848,298	$	-		$	2,993,489
Operating profit		244,691		179,824		187,246		223,335		(77,509	)		757,587
Assets:
Operating assets		225,620		199,016		232,527		251,721		24,731			933,615
Intangible assets, net		590,175		555,667		2,631,085		1,790,797		-			5,567,724
Other		100,102		80,230		114,834		51,044		223,555			569,765
Total													7,071,104
Capital expenditures		14,030		5,532		8,253		9,765		825			38,405
Depreciation and other amortization		21,754		19,671		50,309		62,629		385			154,748

Summarized data for Roper's U.S. and foreign operations (principally in Canada, Europe and Asia) for 2014, 2013 and 2012, based upon the country of origin of the Roper entity making the sale, was as follows (in thousands):

	United States		Non-U.S.		Eliminations			Total
2014
Sales to unaffiliated customers	$	2,661,470	$	888,024	$	-		$	3,549,494
Sales between geographic areas		159,049		119,175		(278,224	)		-
Net sales	$	2,820,519	$	1,007,199	$	(278,224	)	$	3,549,494
Long-lived assets	$	134,855	$	30,781	$	-		$	165,636
2013
Sales to unaffiliated customers	$	2,400,592	$	837,536	$	-		$	3,238,128
Sales between geographic areas		141,529		121,431		(262,960	)		-
Net sales	$	2,542,121	$	958,967	$	(262,960	)	$	3,238,128
Long-lived assets	$	135,157	$	36,266	$	-		$	171,423
2012
Sales to unaffiliated customers	$	2,174,443	$	819,046	$	-		$	2,993,489
Sales between geographic areas		140,864		111,813		(252,677	)		-
Net sales	$	2,315,307	$	930,859	$	(252,677	)	$	2,993,489
Long-lived assets	$	125,015	$	35,702	$	-		$	160,717

Export sales from the U.S. during the years ended December 31, 2014, 2013 and 2012 were $477 million, $479 million and $459 million, respectively. In the year ended December 31, 2014, these exports were shipped primarily to Asia (36%), Europe (18%), Canada (16%), Middle East (13%), South America (6%), South Pacific (5%) and other (6%).

Sales to customers outside the U.S. accounted for a significant portion of Roper's revenues. Sales are attributed to geographic areas based upon the location where the product is ultimately shipped. Roper's net sales for the years ended December 31, 2014, 2013 and 2012 are shown below by region, except for Canada, which is presented separately as it is the only country in which Roper has had greater than 5% of total sales for any of the three years presented (in thousands):

	Industrial Technology		Energy Systems and Controls		Medical and Scientific Imaging		RF Technology		Total
2014
Canada	$	106,598	$	31,831	$	24,997	$	45,811	$	209,237
Europe		121,909		157,391		185,263		54,330		518,893
Asia		61,552		143,524		107,695		7,555		320,326
Middle East		3,824		42,988		9,997		34,241		91,050
Rest of the world		26,134		78,186		28,722		9,333		142,375
Total	$	320,017	$	453,920	$	356,674	$	151,270	$	1,281,881
2013
Canada	$	109,361	$	34,260	$	25,502	$	45,954	$	215,077
Europe		108,644		153,807		168,394		62,825		493,670
Asia		65,622		136,934		103,931		8,134		314,621
Middle East		3,865		32,444		9,361		44,341		90,011
Rest of the world		26,716		82,956		17,856		11,865		139,393
Total	$	314,208	$	440,401	$	325,044	$	173,119	$	1,252,772
2012
Canada	$	94,035	$	39,836	$	21,308	$	47,371	$	202,550
Europe		104,105		148,360		161,075		64,492		478,032
Asia		75,113		121,997		111,642		6,465		315,217
Middle East		3,846		47,866		4,613		30,125		86,450
Rest of the world		34,091		68,275		20,500		9,293		132,161
Total	$	311,190	$	426,334	$	319,138	$	157,746	$	1,214,410