SEGMENT REPORTING

We have three reportable segments: Factory Metrology, Construction BIM-CIM, and Other. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reportable segments are aggregated in the Other category.

We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software, and three-dimensional documentation systems in each of these reportable segments. These activities represent more than 99% of consolidated sales.

Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reportable segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly titled measures reported by other companies.

The following tables present information about our reportable segments for the years ended December 31, 2017, 2016, and 2015:



	Factory Metrology		Construction BIM-CIM		Other		Total
2017
Net sales to external customers	$	245,114	$	86,349	$	29,454	$	360,917
Segment profit	$	78,857	$	21,077	$	1,159	$	101,093

General and administrative							43,807
Depreciation and amortization							16,588
Research and development							35,376

Income from operations							$	5,322



	Factory Metrology		Construction BIM-CIM		Other		Total
2016
Net sales to external customers	$	236,313	$	65,056	$	24,215	$	325,584
Segment profit	$	73,656	$	14,799	$	9,635	$	98,090

General and administrative							40,813
Depreciation and amortization							13,868
Research and development							30,125

Income from operations							$	13,284



	Factory Metrology		Construction BIM-CIM		Other		Total
2015
Net sales to external customers	$	222,745	$	70,849	$	23,954	$	317,548
Segment profit	$	63,463	$	16,299	$	7,637	$	87,399

General and administrative							36,370
Depreciation and amortization							11,217
Research and development							26,690

Income from operations							$	13,122

Net sales to external customers is based upon the geographic location of the customer.



	For the Years Ended December 31,
	2017		2016		2015
Net sales to external customers
United States	$	141,595	$	133,924	$	131,670
Americas-Other	13,531		11,815		11,718
Germany	49,860		44,041		41,151
Europe-Other	65,201		57,710		62,032
Japan	35,270		32,530		24,018
Asia-Other	55,460		45,564		46,959
	$	360,917	$	325,584	$	317,548

Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable.



	As of December 31,
	2017		2016		2015
Long-Lived Assets
United States	$	54,703	$	54,157	$	39,973
Americas-Other	13,834		13,486		9,447
Germany	26,611		23,734		24,637
Europe-Other	9,124		6,949		1,146
Japan	558		460		517
Asia-Other	2,246		1,915		2,582
	$	107,076	$	100,701	$	78,302