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Segment Information | 9 Months Ended
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Oct. 01, 2021
Segment Reporting [Abstract] |
Segment Information | 16. Segment Information Reportable Segments The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. 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 technologies offered to customer s. Based upon the information provided to the CODM, the Company has determined that it operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities consist of the following: Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, 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; visualization solutions; wireless, recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal chart recorders; 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 sub-assemblies, servo drives, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles 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 |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
Revenue | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Photonics | $ | 55,263 |  |  | $ | 46,394 |  |  | $ | 176,113 |  |  | $ | 149,337 |
Vision |  | 65,346 |  |  |  | 64,299 |  |  |  | 196,429 |  |  |  | 198,047 |
Precision Motion |  | 57,117 |  |  |  | 32,236 |  |  |  | 135,291 |  |  |  | 95,741 |
Total | $ | 177,726 |  |  | $ | 142,929 |  |  | $ | 507,833 |  |  | $ | 443,125 |
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
Gross Profit | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Photonics | $ | 25,311 |  |  | $ | 20,166 |  |  | $ | 83,014 |  |  | $ | 65,725 |
Vision |  | 24,763 |  |  |  | 24,586 |  |  |  | 76,132 |  |  |  | 75,676 |
Precision Motion |  | 27,743 |  |  |  | 15,011 |  |  |  | 64,694 |  |  |  | 42,753 |
Unallocated Corporate and Shared Services |  | (1,519 | ) |  |  | (658 | ) |  |  | (6,396 | ) |  |  | (1,902 | )
Total | $ | 76,298 |  |  | $ | 59,105 |  |  | $ | 217,444 |  |  | $ | 182,252 |
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
Gross Profit Margin | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Photonics |  | 45.8 | % |  |  | 43.5 | % |  |  | 47.1 | % |  |  | 44.0 | %
Vision |  | 37.9 | % |  |  | 38.2 | % |  |  | 38.8 | % |  |  | 38.2 | %
Precision Motion |  | 48.6 | % |  |  | 46.6 | % |  |  | 47.8 | % |  |  | 44.7 | %
Total |  | 42.9 | % |  |  | 41.4 | % |  |  | 42.8 | % |  |  | 41.1 | %
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
Operating Income (Loss) | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Photonics | $ | 9,294 |  |  | $ | 7,026 |  |  | $ | 35,885 |  |  | $ | 22,878 |
Vision |  | 5,606 |  |  |  | 3,799 |  |  |  | 12,178 |  |  |  | 14,098 |
Precision Motion |  | 14,957 |  |  |  | 7,675 |  |  |  | 34,681 |  |  |  | 20,728 |
Unallocated Corporate and Shared Services |  | (14,582 | ) |  |  | (6,634 | ) |  |  | (40,378 | ) |  |  | (18,887 | )
Total | $ | 15,275 |  |  | $ | 11,866 |  |  | $ | 42,366 |  |  | $ | 38,817 |
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
Depreciation and Amortization Expenses | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Photonics | $ | 2,901 |  |  | $ | 2,864 |  |  | $ | 8,703 |  |  | $ | 8,303 |
Vision |  | 5,239 |  |  |  | 5,296 |  |  |  | 15,793 |  |  |  | 15,845 |
Precision Motion |  | 2,691 |  |  |  | 1,369 |  |  |  | 5,916 |  |  |  | 4,055 |
Unallocated Corporate and Shared Services |  | 59 |  |  |  | 67 |  |  |  | 201 |  |  |  | 160 |
Total | $ | 10,890 |  |  | $ | 9,596 |  |  | $ | 30,613 |  |  | $ | 28,363 |
Revenue by Geography The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands):
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
| 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
United States | $ | 72,972 |  |  | $ | 57,635 |  |  | $ | 191,699 |  |  | $ | 171,364 |
Germany |  | 25,313 |  |  |  | 18,885 |  |  |  | 71,448 |  |  |  | 64,266 |
Rest of Europe |  | 34,163 |  |  |  | 30,483 |  |  |  | 105,338 |  |  |  | 94,281 |
China |  | 22,230 |  |  |  | 17,409 |  |  |  | 68,286 |  |  |  | 50,285 |
Rest of Asia-Pacific |  | 21,256 |  |  |  | 16,414 |  |  |  | 64,765 |  |  |  | 55,956 |
Other |  | 1,792 |  |  |  | 2,103 |  |  |  | 6,297 |  |  |  | 6,973 |
Total | $ | 177,726 |  |  | $ | 142,929 |  |  | $ | 507,833 |  |  | $ | 443,125 |
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 medical market and advanced industrial market. Revenue by end market was approximately as follows:
| Three Months Ended |  |  | Nine Months Ended |
| October 1, |  |  | October 2, |  |  | October 1, |  |  | October 2, |
| 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Medical |  | 53 | % |  |  | 54 | % |  |  | 53 | % |  |  | 56 | %
Advanced Industrial |  | 47 | % |  |  | 46 | % |  |  | 47 | % |  |  | 44 | %
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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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