Annual report pursuant to Section 13 and 15(d)

Note 11 - Segment Information

v3.7.0.1
Note 11 - Segment Information
 12 Months Ended
Jun. 30, 2017
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 reporting segment develops, manufactures and sells proteins, antibodies, immunoassays, flow cytometry products, intracellular signaling products, and biologically active chemical compounds used in biological research.
No
customer in the Biotechnology segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 2017,
2016,
and
2015.
 
The Company's Protein Platforms segment develops and commercializes proprietary systems and consumables for protein analysis. This segment was formed in fiscal
2015
with the acquisitions of ProteinSimple and CyVek.
No
customer in the Protein Platforms segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 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%
and
13%
of the Diagnostics segments net sales for the years ended
June 30, 2017
and
2015,
respectively.
No
customer in the Diagnostics segment accounted for more than
10%
of the segment’s net sales for the years ended
June 30, 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,
 
 
 
2017
 
 
2016
 
 
2015
 
External sales
                        
Biotechnology
   $
364,504
     $
317,340
     $
308,437
  
Protein Platforms
    
91,464
      
77,324
      
66,249
  
Diagnostics
    
107,139
      
104,484
      
77,866
  
Intersegment
    
(104
)
    
(125
)
    
(306
)
Consolidated net sales
   $
563,003
     $
499,023
     $
452,246
  
                         
Operating Income
                        
Biotechnology
   $
175,163
     $
168,613
     $
165,226
  
Protein Platforms
    
9,648
      
3,592
      
4,469
  
Diagnostics
    
28,575
      
30,412
      
23,981
  
Segment operating income
    
213,386
      
202,617
      
193,676
  
Costs recognized upon sale of acquired inventory
    
(3,037
)
    
(5,431
)
    
(6,952
)
Amortization of intangibles
    
(44,393
)
    
(29,395
)
    
(26,169
)
Stock based compensation
    
(14,631
)
    
(9,430
)
    
(5,957
)
Acquisition related expenses
    
(25,789
)
    
(2,761
)
    
(4,519
)
Corporate general, selling and administrative expenses
    
(4,952
)
    
(5,007
)
    
(3,056
)
Consolidated operating income
   $
120,584
     $
150,593
     $
147,023
  
 
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.
 
Following is financial information relating to geographic areas (in thousands):
 
 
 
Year Ended June 30,
 
 
 
2017
 
 
2016
 
 
2015
 
External sales
                        
United States
   $
313,195
     $
275,859
     $
245,217
  
EMEA, excluding U.K.
    
125,126
      
103,060
      
104,178
  
U.K.
    
28,401
      
28,307
      
32,309
  
APAC, excluding Greater China
    
41,463
      
38,137
      
24,015
  
Greater China
    
39,078
      
36,199
      
34,933
  
Rest of world
    
15,740
      
17,461
      
11,594
  
Total external sales
   $
563,003
     $
499,023
     $
452,246
  
                         
Long-lived assets
                        
United States and Canada
   $
119,859
     $
116,830
     $
117,224
  
Europe
    
14,100
      
14,423
      
11,239
  
China
    
1,165
      
1,109
      
1,286
  
Total long-lived assets
  $
135,124
     $
132,362
     $
129,749
  
 
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.