Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Information

v3.19.2
Note 12 - Segment Information
 12 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
12.
Segment Information:
 
The Company has
two
reportable segments based on the nature of its products; they are Protein Sciences and Diagnostics and Genomics.
 
The Company's Protein Sciences segment is comprised of the Reagent Sol
utions and the Analytical Solutions operating segment. These businesses manufacture consumables used for conducting laboratory experiments by both industry and academic scientists within the biotechnology and biomedical life science fields.
No
customer in the Protein Sciences segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 2019
,
2018,
and
2017.
  
The Company's Diagnostics and Genomics is comprised of the Diagnostics, Genomics, and Exosome operating segments. The Diagnostics division consists of the Diagnostics operating segment and 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, and the Genomics division consists of the Genomics and Exosome operating segments and sells a portfolio of clinical molecular diagnostic oncology assays, as well as tissue-based in-situ hybridization assays for research in clinical use.
No
customer in the Diagnostics and Genomics segment accounted for more than
10%
of the segment’s net sales for the fiscal years ended
June 30, 2019,
2018,
and
2017.
 
 
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
9
    
201
8
    
201
7
  
Net sales:
                        
Protein Sciences
   $
543,159
     $
482,378
     $
419,365
  
Diagnostics and Genomics
    
171,674
      
161,151
      
143,742
  
Intersegment
    
(827
)
    
(536
)
    
(104
)
Consolidated net sales
   $
714,006
     $
642,993
     $
563,003
  
                         
Operating Income:
                        
Protein Sciences
   $
240,919
     $
209,880
     $
184,095
  
Diagnostics and Genomics
    
10,079
      
35,496
      
29,291
  
Segment operating income
    
250,998
      
245,376
      
213,386
  
Costs recognized upon sale of acquired inventory
    
(3,739
)
    
(2,455
)
    
(3,037
)
Amortization of intangibles
    
(58,550
)
    
(46,983
)
    
(44,393
)
Acquisition related expenses
    
(2,282
)
    
(24,429
)
    
(25,789
)
Restructuring costs
    
-
 
    
(376
)
    
-
  
Stock-based compensation
    
(33,057
)
    
(28,240
)
    
(14,631
)
Corporate general, selling and administrative expenses
    
(6,651
)
    
(6,715
)
    
(4,952
)
Consolidated operating income
   $
146,719
     $
136,178
     $
120,584
  
 
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 Company has disclosed sales by geographic area based on the location of the customer or distributor in Note
2.
The Company has disclosed d
issagregated product and service revenue by consumables, instruments, and services in Note
2.
The Company considers total instrument and total service revenue to represent similar groups of products in the fiscal years presented. The Company considered our consumables sold in the Protein Sciences and Diagnostics and Genomics segments to represent different groups of products and therefore have separately disclosed the related consumables revenue (in thousands) :
 
   
Year Ended June 30,
  
   
201
9
    
201
8
    
201
7
  
Consumables revenue - Protein Sciences   $
430,655
     $
384,350
     $
341,611
  
Consumables revenue - Diagnostics and Genomics
    
158,324
      
150,388
      
134,930
  
Total consumable revenue
   $
588,979
     $
534,738
     $
476,541
  
 
The following is financial information relating to geographic areas (in thousands):
 
   
Year ended June 30,
  
Long-lived assets:
  
201
9
    
201
8
  
United States and Canada
   $
138,016
     $
129,360
  
Europe
    
14,439
      
14,597
  
Asia
    
1,584
      
1,391
  
Total long-lived assets
   $
154,039
     $
145,348
  
Intangible assets:
                
United States and Canada
   $
556,951
     $
417,430
  
Europe
    
16,637
      
21,386
  
Asia
    
5,841
      
7,516
  
Total intangible assets
   $
579,429
     $
446,332
  
 
Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation and other assets.