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Segment Information | 9 Months Ended
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Sep. 28, 2018
Segment Reporting [Abstract] |
Segment Information | 17. Segment Information Reportable Segments The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers. The Company operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities are described below. Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Vision The Vision segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; surgical displays and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal printers; spectrometry technologies; and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Precision Motion The Precision Motion segment designs, manufactures and markets optical and inductive encoders, precision motor and motion control technology, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Reportable Segment Financial Information Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data):
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Photonics | $ | 61,285 |  |  | $ | 61,882 |  |  | $ | 187,178 |  |  | $ | 170,503 |
Vision |  | 62,113 |  |  |  | 58,150 |  |  |  | 172,145 |  |  |  | 124,943 |
Precision Motion |  | 37,396 |  |  |  | 26,264 |  |  |  | 98,836 |  |  |  | 78,926 |
Total | $ | 160,794 |  |  | $ | 146,296 |  |  | $ | 458,159 |  |  | $ | 374,372 |
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Gross Profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Photonics | $ | 29,218 |  |  | $ | 28,966 |  |  | $ | 89,510 |  |  | $ | 77,423 |
Vision |  | 24,160 |  |  |  | 19,792 |  |  |  | 64,322 |  |  |  | 47,378 |
Precision Motion |  | 16,788 |  |  |  | 10,291 |  |  |  | 44,750 |  |  |  | 34,558 |
Unallocated Corporate and Shared Services |  | (532 | ) |  |  | (342 | ) |  |  | (1,560 | ) |  |  | (1,069 | )
Total | $ | 69,634 |  |  | $ | 58,707 |  |  | $ | 197,022 |  |  | $ | 158,290 |
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Gross Profit Margin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Photonics |  | 47.7 | % |  |  | 46.8 | % |  |  | 47.8 | % |  |  | 45.4 | %
Vision |  | 38.9 | % |  |  | 34.0 | % |  |  | 37.4 | % |  |  | 37.9 | %
Precision Motion |  | 44.9 | % |  |  | 39.2 | % |  |  | 45.3 | % |  |  | 43.8 | %
Total |  | 43.3 | % |  |  | 40.1 | % |  |  | 43.0 | % |  |  | 42.3 | %
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Operating Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Photonics | $ | 14,595 |  |  | $ | 15,367 |  |  | $ | 46,102 |  |  | $ | 36,138 |
Vision |  | 5,380 |  |  |  | 846 |  |  |  | 6,246 |  |  |  | 4,893 |
Precision Motion |  | 8,818 |  |  |  | 5,493 |  |  |  | 25,037 |  |  |  | 20,238 |
Unallocated Corporate and Shared Services |  | (7,798 | ) |  |  | (9,299 | ) |  |  | (22,048 | ) |  |  | (22,776 | )
Total | $ | 20,995 |  |  | $ | 12,407 |  |  | $ | 55,337 |  |  | $ | 38,493 |
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Depreciation and Amortization Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Photonics | $ | 2,997 |  |  | $ | 3,666 |  |  | $ | 9,030 |  |  | $ | 10,693 |
Vision |  | 5,100 |  |  |  | 4,362 |  |  |  | 15,371 |  |  |  | 9,276 |
Precision Motion |  | 1,020 |  |  |  | 588 |  |  |  | 2,364 |  |  |  | 1,746 |
Unallocated Corporate and Shared Services |  | 82 |  |  |  | 248 |  |  |  | 621 |  |  |  | 725 |
Total | $ | 9,199 |  |  | $ | 8,864 |  |  | $ | 27,386 |  |  | $ | 22,440 |
Revenue by Geography The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers was as follows (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
United States | $ | 63,073 |  |  | $ | 58,949 |  |  | $ | 181,653 |  |  | $ | 157,778 |
Germany |  | 23,089 |  |  |  | 17,728 |  |  |  | 64,170 |  |  |  | 46,807 |
Rest of Europe |  | 30,222 |  |  |  | 27,152 |  |  |  | 80,629 |  |  |  | 55,164 |
China |  | 17,516 |  |  |  | 15,459 |  |  |  | 51,486 |  |  |  | 40,920 |
Rest of Asia-Pacific |  | 24,882 |  |  |  | 23,769 |  |  |  | 74,589 |  |  |  | 64,511 |
Other |  | 2,012 |  |  |  | 3,239 |  |  |  | 5,632 |  |  |  | 9,192 |
Total | $ | 160,794 |  |  | $ | 146,296 |  |  | $ | 458,159 |  |  | $ | 374,372 |
The majority of revenue from our Photonics, Vision and Precision Motion segments is generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue. Revenue by End Market The Company primarily operates in two end markets: the advanced industrial market and the medical market. Revenue by end market was approximately as follows:
| Three Months Ended |  |  | Nine Months Ended |
| September 28, |  |  | September 29, |  |  | September 28, |  |  | September 29, |
| 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Advanced Industrial |  | 50 | % |  |  | 50 | % |  |  | 50 | % |  |  | 55 | %
Medical |  | 50 | % |  |  | 50 | % |  |  | 50 | % |  |  | 45 | %
Total |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The majority of revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Vision segment is generated from sales to customers in the medical market.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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