| Segment Information |
L. Segment
Information:
The Company has two
reportable segments based on the nature of its products. The
Company’s Biotechnology reporting segment develops,
manufactures and sells biotechnology research and diagnostic
products world-wide. The Company’s Clinical Controls
reporting segment develops and manufactures controls and
calibrators for sale world-wide. No customer in the Biotechnology
segment accounted for more than 10% of the segments net sales for
the years ended June 30, 2014, 2013 and 2012. One customer
accounted for approximately 14% of Clinical Controls’ net
sales during fiscal 2014. No single customer accounted for more
than 10% of Clinical Controls’ net sales in fiscal 2013 or
2012. 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):
|
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|
|
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| |
|
Year Ended
June 30, |
|
| |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
External sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Biotechnology
|
|
$ |
300,578 |
|
|
$ |
288,156 |
|
|
$ |
293,274 |
|
|
Clinical
Controls
|
|
|
57,185 |
|
|
|
22,419 |
|
|
|
21,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
sales
|
|
$ |
357,763 |
|
|
$ |
310,575 |
|
|
$ |
314,560 |
|
|
|
|
|
|
|
|
|
|
|
|
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Earnings before
taxes
|
|
|
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|
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|
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|
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|
Biotechnology
|
|
$ |
159,220 |
|
|
$ |
156,910 |
|
|
$ |
162,763 |
|
|
Clinical
Controls
|
|
|
10,643 |
|
|
|
8,746 |
|
|
|
8,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Segment earnings before
taxes
|
|
|
169,863 |
|
|
|
165,656 |
|
|
|
170,765 |
|
|
Corporate
|
|
|
(8,471 |
) |
|
|
(4,994 |
) |
|
|
(8,570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated earnings
before taxes
|
|
$ |
161,392 |
|
|
$ |
160,662 |
|
|
$ |
162,195 |
|
|
|
|
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Goodwill
|
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|
|
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Biotechnology
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|
$ |
95,124 |
|
|
$ |
84,336 |
|
|
$ |
85,682 |
|
|
Clinical
Controls
|
|
|
56,349 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
goodwill
|
|
$ |
151,473 |
|
|
$ |
84,336 |
|
|
$ |
85,682 |
|
|
|
|
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|
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Intangible assets,
net
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|
Biotechnology
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|
$ |
53,778 |
|
|
$ |
40,552 |
|
|
$ |
46,476 |
|
|
Clinical
Controls
|
|
|
54,998 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
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|
|
|
|
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|
Consolidated intangible
assets, net
|
|
$ |
108,776 |
|
|
$ |
40,552 |
|
|
$ |
46,476 |
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
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|
|
|
|
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| |
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Year Ended
June 30, |
|
| |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Biotechnology
|
|
$ |
685,302 |
|
|
$ |
580,085 |
|
|
$ |
529,392 |
|
|
Clinical
Controls
|
|
|
55,615 |
|
|
|
24,887 |
|
|
|
22,135 |
|
|
|
|
|
|
|
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|
|
|
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Segment assets
|
|
|
740,917 |
|
|
|
604,972 |
|
|
|
551,527 |
|
|
Corporate cash and
available- for- sale investments
|
|
|
60,142 |
|
|
|
108,504 |
|
|
|
112,443 |
|
|
Corporate property and
equipment
|
|
|
60,350 |
|
|
|
61,296 |
|
|
|
51,587 |
|
|
Corporate, other
|
|
|
1,082 |
|
|
|
3,326 |
|
|
|
3,767 |
|
|
|
|
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|
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Consolidated
assets
|
|
$ |
862,491 |
|
|
$ |
778,098 |
|
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$ |
719,324 |
|
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|
|
|
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Depreciation and
amortization
|
|
|
|
|
|
|
|
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|
Biotechnology
|
|
$ |
10,879 |
|
|
$ |
10,781 |
|
|
$ |
10,920 |
|
|
Clinical
Controls
|
|
|
7,205 |
|
|
|
389 |
|
|
|
411 |
|
|
|
|
|
|
|
|
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|
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Segment depreciation and
amortization
|
|
|
18,084 |
|
|
|
11,170 |
|
|
|
11,331 |
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Corporate
|
|
|
1,091 |
|
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|
1,151 |
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|
1,136 |
|
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Consolidated depreciation
and amortization
|
|
$ |
19,175 |
|
|
$ |
12,321 |
|
|
$ |
12,467 |
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Capital
purchases
|
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|
|
|
|
|
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|
Biotechnology
|
|
$ |
4,157 |
|
|
$ |
3,248 |
|
|
$ |
4,021 |
|
|
Clinical
Controls
|
|
|
5,687 |
|
|
|
6,914 |
|
|
|
597 |
|
|
|
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|
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Segment capital
purchases
|
|
|
9,844 |
|
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|
10,162 |
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|
|
4,618 |
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Corporate
|
|
|
3,977 |
|
|
|
12,292 |
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|
|
1,399 |
|
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Consolidated capital
purchases
|
|
$ |
13,821 |
|
|
$ |
22,454 |
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|
$ |
6,017 |
|
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|
The other reconciling items
include the results of unallocated corporate expenses 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, |
|
| |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
External sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$ |
190,359 |
|
|
$ |
164,308 |
|
|
$ |
172,310 |
|
|
Europe
|
|
|
97,157 |
|
|
|
88,297 |
|
|
|
90,142 |
|
|
China
|
|
|
18,878 |
|
|
|
14,106 |
|
|
|
11,378 |
|
|
Other Asia
|
|
|
32,704 |
|
|
|
28,608 |
|
|
|
25,988 |
|
|
Rest of world
|
|
|
18,665 |
|
|
|
15,256 |
|
|
|
14,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total external
sales
|
|
$ |
357,763 |
|
|
$ |
310,575 |
|
|
$ |
314,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$ |
109,790 |
|
|
$ |
103,541 |
|
|
$ |
87,968 |
|
|
Europe
|
|
|
8,340 |
|
|
|
7,129 |
|
|
|
7,528 |
|
|
China
|
|
|
678 |
|
|
|
117 |
|
|
|
141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-lived
assets
|
|
$ |
118,808 |
|
|
$ |
110,787 |
|
|
$ |
95,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External sales are
attributed to countries based on the location of the customer or
distributor. Long-lived assets are comprised of land, buildings and
improvements and equipment, net of accumulated depreciation and
other assets.
|