Note

– Segment Reporting

The Company

’s reportable segments are based on the internal reporting used by the Company’s CEO, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Company’s reportable segments are based upon geographic region, consisting of the United States and Europe. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs that are global in nature and that the Company does

not

allocate directly to its operating segments.

Revenue in the United States is derived

from Injection Molding, CNC Machining,

Printing and Sheet Metal product lines. Revenue in Europe is derived from Injection Molding, CNC Machining, and

Printing product lines. Revenue in Japan is derived from Injection Molding and CNC Machining product lines. Injection Molding revenue consists of sales of custom injection molds and injection-molded parts. CNC Machining revenue consists of sales of CNC-machined customer parts.

Printing revenue consists of sales of

-printed parts. Sheet Metal revenue consists of sales of fabricated sheet metal parts.

The accounting policies of the reportable segments are the same as those described in Note

– Summary of Significant Accounting Policies. Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are

not

allocated to business segments.

Revenue and income from operations by reportable segment are as follows:


	Year Ended December 31,
(in thousands)	2017		2016		2015
Revenue:
United States	$	263,086	$	223,930	$	208,018
Europe		70,154		63,365		47,433
Japan		11,250		10,760		8,655
Total revenue	$	344,490	$	298,055	$	264,106

	Year Ended December 31,
(in thousands)	2017			2016			2015
Income from Operations:
United States	$	103,136		$	89,308		$	86,450
Europe		12,846			11,657			13,304
Corporate Unallocated and Japan		(43,756	)		(39,198	)		(32,605	)
Total income from operations	$	72,226		$	61,767		$	67,149

Total long-lived assets, expenditures for additions to long-lived assets and depreciation and amortization expense are as follows:


	December 31,		December 31,		December 31,
(in thousands)	2017		2016		2015
Long-lived assets:
United States	$	125,308	$	108,650	$	98,633
Europe		33,691		23,199		23,636
Japan		7,441		7,625		3,206
Total long-lived assets	$	166,440	$	139,474	$	125,475


	Year Ended December 31,
(in thousands)	2017		2016		2015
Expenditures for additions to long-lived assets:
United States	$	20,370	$	21,190	$	32,560
Europe		11,704		5,954		10,396
Japan		561		6,472		1,406
Total expenditures for additions to long-lived assets	$	32,635	$	33,616	$	44,362


	Year Ended December 31,
(in thousands)	2017		2016		2015
Depreciation and Amortization:
United States	$	13,267	$	12,533	$	11,596
Europe		4,174		3,386		2,132
Japan		1,033		1,566		398
Total depreciation and amortization	$	18,474	$	17,485	$	14,126

The Company

’s revenue is derived primarily from its Injection Molding, CNC Machining,

Printing and Sheet Metal product lines. Total revenue by product lines is as follows:


	Year Ended December 31,
(in thousands)	2017		2016		2015

Revenue:
Injection Molding	$	194,432	$	175,974	$	163,387
CNC Machining		103,739		81,407		74,368
3D Printing		43,329		37,847		25,132
Sheet Metal		1,767		-		-
Other Product		1,223		2,827		1,219
Total revenue	$	344,490	$	298,055	$	264,106