Annual report pursuant to Section 13 and 15(d)

Segment information

 v2.3.0.11
Segment information
 12 Months Ended
Jun. 30, 2011
Segment information

M. Segment information:

The Company has two reportable segments based on the nature of its products. As a result of the above acquisitions, the Company has changed the presentation of its segment disclosure from three segments (biotechnology, R&D Europe and hematology) to two segments (biotechnology and hematology). R&D Systems’ Biotechnology Division, R&D Europe, Tocris, R&D China, BiosPacific and Boston Biochem operating segments 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 hematology reporting segment, which consists of R&D Systems’ Hematology Division, develops and manufactures hematology controls and calibrators for sale world-wide. Corresponding items of segment information have been revised for prior periods to conform to the current year presentation. No customer of either segment accounted for more than 10% of the Company’s consolidated net sales for the years ended June 30, 2011, 2010 and 2009.

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,  
     2011     2010     2009  

External sales

       

Biotechnology

    $ 270,287      $ 250,653      $ 246,454   

Hematology

      19,675        18,394        17,502   
  

 

 

    

 

 

    

 

 

  

Consolidated net sales

    $ 289,962      $ 269,047      $ 263,956   
  

 

 

    

 

 

    

 

 

  

Earnings before taxes

       

Biotechnology

    $ 164,332      $ 155,989      $ 156,039   

Hematology

      7,222        6,869        6,143   
  

 

 

    

 

 

    

 

 

  

Segment earnings before taxes

      171,554        162,858        162,182   

Other

      (6,573 )      (6,412 )      (6,819 ) 
  

 

 

    

 

 

    

 

 

  

Consolidated earnings before taxes

    $ 164,981      $ 156,446      $ 155,363   
  

 

 

    

 

 

    

 

 

  

Goodwill

       

Biotechnology

    $ 86,633      $ 25,068      $ 25,068   

Hematology

      0        0        0   
  

 

 

    

 

 

    

 

 

  

Consolidated goodwill

    $ 86,633      $ 25,068      $ 25,068   
  

 

 

    

 

 

    

 

 

  

Intangible assets, net

       

Biotechnology

    $ 52,282      $ 2,044      $ 3,004   

Hematology

      0        0        0   
  

 

 

    

 

 

    

 

 

  

Consolidated intangible assets, net

    $ 52,282      $ 2,044      $ 3,004   
  

 

 

    

 

 

    

 

 

  

Assets

       

Biotechnology

    $ 505,087      $ 400,112      $ 355,445   

Hematology

      21,046        18,543        15,804   
  

 

 

    

 

 

    

 

 

  

Segment assets

      526,133        418,655        371,249   

Other

      91,537        100,161        100,756   
  

 

 

    

 

 

    

 

 

  

Consolidated assets

    $ 617,670      $ 518,816      $ 472,005   
  

 

 

    

 

 

    

 

 

  

Depreciation and amortization

       

Biotechnology

    $ 7,165      $ 5,411      $ 4,502   

Hematology

      417        340        229   
  

 

 

    

 

 

    

 

 

  

Segment depreciation and amortization

      7,582        5,751        4,731   

Other

      1,118        2,379        3,035   
  

 

 

    

 

 

    

 

 

  

Consolidated depreciation and amortization

    $ 8,700      $ 8,130      $ 7,766   
  

 

 

    

 

 

    

 

 

  

Capital purchases

       

Biotechnology

    $ 2,707      $ 3,885      $ 3,501   

Hematology

      149        208        94   
  

 

 

    

 

 

    

 

 

  

Segment capital purchases

      2,856        4,093        3,595   

Other

      774        551        2,961   
  

 

 

    

 

 

    

 

 

  

Consolidated capital purchases

    $ 3,630      $ 4,644      $ 6,556   
  

 

 

    

 

 

    

 

 

  

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

 

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

 

     Year Ended June 30,  
     2011      2010      2009  

External sales

         

United States

    $ 159,857       $ 148,137       $ 147,271   

Europe

      83,676         78,496         79,381   

China

      8,299         6,792         5,645   

Other

      38,130         35,622         31,659   
  

 

 

     

 

 

     

 

 

  

Total external sales

    $ 289,962       $ 269,047       $ 263,956   
  

 

 

     

 

 

     

 

 

  

Long-lived assets

         

United States

    $ 88,802       $ 91,554       $ 93,571   
        

Europe

      7,819         6,299         7,214   

China

      96         70         98   
  

 

 

     

 

 

     

 

 

  

Total long-lived assets

    $ 96,717       $ 97,923       $ 100,883   
  

 

 

     

 

 

     

 

 

  

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.