Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
 12 Months Ended
Jun. 30, 2013
Segment Information

L. Segment Information:

The Company has two reportable segments based on the nature of its products. R&D Systems’ Biotechnology Division, R&D Europe, Tocris, R&D China, BiosPacific and Boston Biochem are included in the biotechnology reporting segment. The Company’s biotechnology reporting segment develops, manufactures and sells biotechnology research and diagnostic products world-wide. The Company’s clinical controls reporting segment, which consists of R&D Systems’ Clinical Controls Division, develops and manufactures controls and calibrators for sale world-wide. No customer of either segment accounted for more than 10% of the Company’s consolidated net sales for the years ended June 30, 2013, 2012 and 2011. 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.

The accounting policies of the segments are the same as those described in Note A. In evaluating segment performance, management focuses on sales and earnings before taxes.

 

Following is financial information relating to the operating segments (in thousands):

 

     Year Ended June 30,  
     2013     2012     2011  

External sales

       

Biotechnology

    $ 288,156      $ 293,274      $ 270,287   

Clinical Controls

      22,419        21,286        19,675   
  

 

 

    

 

 

    

 

 

  

Consolidated net sales

    $ 310,575      $ 314,560      $ 289,962   
  

 

 

    

 

 

    

 

 

  

Earnings before taxes

       

Biotechnology

    $ 156,910      $ 162,763      $ 164,332   

Clinical Controls

      8,746        8,002        7,222   
  

 

 

    

 

 

    

 

 

  

Segment earnings before taxes

      165,656        170,765        171,554   

Other

      (4,994 )      (8,570 )      (6,573 ) 
  

 

 

    

 

 

    

 

 

  

Consolidated earnings before taxes

    $ 160,662      $ 162,195      $ 164,981   
  

 

 

    

 

 

    

 

 

  

Goodwill

       

Biotechnology

    $ 84,336      $ 85,682      $ 86,633   

Clinical Controls

      0        0        0   
  

 

 

    

 

 

    

 

 

  

Consolidated goodwill

    $ 84,336      $ 85,682      $ 86,633   
  

 

 

    

 

 

    

 

 

  

Intangible assets, net

       

Biotechnology

    $ 40,552      $ 46,476      $ 52,282   

Clinical Controls

      0        0        0   
  

 

 

    

 

 

    

 

 

  

Consolidated intangible assets, net

    $ 40,552      $ 46,476      $ 52,282   
  

 

 

    

 

 

    

 

 

  

Assets

       

Biotechnology

    $ 580,085      $ 529,392      $ 505,087   

Clinical Controls

      24,887        22,135        21,046   
  

 

 

    

 

 

    

 

 

  

Segment assets

      604,972        551,527        526,133   

Other

      173,126        167,797        91,537   
  

 

 

    

 

 

    

 

 

  

Consolidated assets

    $ 778,098      $ 719,324      $ 617,670   
  

 

 

    

 

 

    

 

 

  

Depreciation and amortization

       

Biotechnology

    $ 10,781      $ 10,920      $ 7,165   

Clinical Controls

      389        411        417   
  

 

 

    

 

 

    

 

 

  

Segment depreciation and amortization

      11,170        11,331        7,582   

Other

      1,151        1,136        1,118   
  

 

 

    

 

 

    

 

 

  

Consolidated depreciation and amortization

    $ 12,321      $ 12,467      $ 8,700   
  

 

 

    

 

 

    

 

 

  

Capital purchases

       

Biotechnology

    $ 3,248      $ 4,021      $ 2,707   

Clinical Controls

      6,914        597        149   
  

 

 

    

 

 

    

 

 

  

Segment capital purchases

      10,162        4,618        2,856   

Other

      12,292        1,399        774   
  

 

 

    

 

 

    

 

 

  

Consolidated capital purchases

    $ 22,454      $ 6,017      $ 3,630   
  

 

 

    

 

 

    

 

 

  

The other reconciling items include the results of unallocated corporate expenses and assets, and the Company’s share of gain (losses) from its equity method investees.

 

Following is financial information relating to geographic areas (in thousands):

 

     Year Ended June 30,  
     2013      2012      2011  

External sales

         

United States

    $ 164,308       $ 172,310       $ 159,857   

Europe

      88,297         90,142         83,676   

China

      14,106         11,378         8,299   

Other Asia

      28,608         25,988         24,715   

Rest of world

      15,256         14,742         13,415   
  

 

 

     

 

 

     

 

 

  

Total external sales

    $ 310,575       $ 314,560       $ 289,962   
  

 

 

     

 

 

     

 

 

  

Long-lived assets

         

United States

    $ 103,541       $ 87,968       $ 88,802   

Europe

      7,129         7,528         7,819   

China

      117         141         96   
  

 

 

     

 

 

     

 

 

  

Total long-lived assets

    $ 110,787       $ 95,637       $ 96,717   
  

 

 

     

 

 

     

 

 

  

External sales are attributed to countries based on the location of the customer/distributor. Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation and other assets.