Annual report pursuant to Section 13 and 15(d)

Note 11 - Segment Information

v3.10.0.1
Note 11 - Segment Information
 12 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
11.
Segment Information:
 
The Company has
three
reportable segments based on the nature of its products; they are Biotechnology, Protein Platforms and Diagnostics.
 
The Company's Biotechnology segment is comprised of the legacy biotechnology business and ACD. These businesses manufacture consumables used for conducting laboratory experiments by both industry and academic scientists within the biotechnology and biomedical life science fields Our protein, antibodies, immunoassays, and small molecules products in the legacy biotechnology business are tools to help our customers analyze the protein component of cells, and the ACD technology allows our customers to analyze the genetic changes within cells. When used together, our customers have a more complete set of tools to study normal and abnormal cell behavior.
No
customer in the Biotechnology segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 2018,
2017,
and
2016.
 
The Company's Protein Platforms segment develops and commercializes proprietary systems and consumables for protein analysis.
No
customer in the Protein Platforms segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 2018,
2017,
and
2016.
 
The Company's Diagnostics reporting segment develops and manufactures a range of controls and calibrators used with diagnostic equipment and as proficiency testing tools, as well as other reagents incorporated into diagnostic kits. One customer accounted for approximately 
12%
for the fiscal year ended
June 30, 2017.
No
customer in the Diagnostics segment accounted for more than
10%
of the segment’s net sales for the fiscal years ended
June 30, 2018
and
2016.
 
 
There are
no
concentrations of business transacted with a particular customer or supplier or concentrations of revenue from a particular product or geographic area that would severely impact the Company in the near term.
  
Following is financial information relating to the operating segments (in thousands):
 
   
Year Ended June 30,
  
   
201
8
    
201
7
    
201
6
  
Net sales:
                        
Biotechnology
   $
421,536
     $
364,504
     $
317,340
  
Protein Platforms
    
111,885
      
91,464
      
77,324
  
Diagnostics
    
110,108
      
107,139
      
104,484
  
Intersegment
    
(536
)
    
(104
)
    
(125
)
Consolidated net sales
   $
642,993
     $
563,003
     $
499,023
  
                         
Operating Income:
                        
Biotechnology
   $
199,100
     $
175,163
     $
168,613
  
Protein Platforms
    
17,996
      
9,648
      
3,592
  
Diagnostics
    
28,280
      
28,575
      
30,412
  
Segment operating income
    
245,376
      
213,386
      
202,617
  
Costs recognized upon sale of acquired inventory
    
(2,455
)
    
(3,037
)
    
(5,431
)
Amortization of intangibles
    
(46,983
)
    
(44,393
)
    
(29,395
)
Acquisition related expenses
    
(24,429
)
    
(25,789
)
    
(2,761
)
Restructuring costs
    
(376
)
    
-
      
-
  
Stock-based compensation
    
(28,240
)
    
(14,631
)
    
(9,430
)
Corporate general, selling and administrative expenses
    
(6,715
)
    
(4,952
)
    
(5,007
)
Consolidated operating income
   $
136,178
     $
120,584
     $
150,593
  
 
The Company has some integrated facilities that serve multiple segments. As such, asset and capital expenditure information by reportable segment has
not
been provided and is
not
available, since the Company does
not
produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each reportable segment’s operating results, it is
not
discretely identifiable.
 
The revenues from external customers within each of our segments represent a similar group of products.
 
Following is financial information relating to geographic areas (in thousands):
 
   
Year Ended June 30,
  
   
2018
    
2017
    
2016
  
Net sales:
                        
United States
   $
346,293
     $
313,195
     $
275,859
  
EMEA, excluding U.K.
    
148,599
      
125,126
      
103,060
  
U.K.
    
33,704
      
28,401
      
28,307
  
APAC, excluding Greater China
    
48,392
      
41,463
      
38,137
  
Greater China
    
47,950
      
39,078
      
36,199
  
Rest of world
    
18,055
      
15,740
      
17,461
  
Total external sales
   $
642,993
     $
563,003
     $
499,023
  
                         
Long-lived assets:
                        
United States and Canada
   $
129,360
     $
119,859
     $
116,830
  
Europe
    
14,597
      
14,100
      
14,423
  
China
    
1,391
      
1,165
      
1,109
  
Total long-lived assets
   $
145,348
     $
135,124
     $
132,362
  
 
External sales are attributed to countries based on the location of the customer or distributor.
 
     
Year ended
June 30,
  
Long-lived assets:    
2018
      
2017
  
United States and Canada   $
129,360
     $
119,859
  
Europe    
14,597
      
14,100
  
China    
1,391
      
1,165
  
Total long-lived assets   $
145,348
     $
135,124
  
Intangible assets:                
United States and Canada   $
417,430
     $
424,579
  
Europe    
21,386
      
18,710
  
China    
7,516
      
8,753
  
Total intangible assets   $
446,332
     $
452,042
  
 
Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation and other assets.