Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Information

v3.20.2
Note 12 - Segment Information
 12 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 12. Segment Information:

 

The Company operates under two operating segments, Protein Sciences and Diagnostics and Genomics.

 

The Company's Protein Sciences segment is comprised of the Reagent Solutions division and Analytical Solution division. 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, 2020, 2019, and 2018.

  

The Company's Diagnostics and Genomics is comprised of the Diagnostics Reagents division and the Genomics division. The Diagnostics Reagents division 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. The Genomics division consists of Genomics and Exosome products 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, 2020, 2019, and 2018. 

 

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,

  
   

2020

     2019     2018  

Net sales:

                        

Protein Sciences

   $ 555,352     $ 543,159     $ 482,378  

Diagnostics and Genomics

     184,549       171,674       161,151  

Intersegment

     (1,210

)

     (827

)

     (536

)

Consolidated net sales

   $ 738,691     $ 714,006     $ 642,993  
                         

Operating Income:

                        

Protein Sciences

   $ 234,929     $ 240,919     $ 209,880  

Diagnostics and Genomics

     14,965       10,079       35,496  

Segment operating income

     249,894       250,998       245,376  

Costs recognized upon sale of acquired inventory

     -

 

     (3,739

)

     (2,455

)

Amortization of acquired intangible assets

     (60,865

)

     (58,550

)

     (46,983

)
Gain on escrow settlement     7,169       -       -  

Acquisition related expenses

     (416

)

     (2,282

)

     (24,429

)

Restructuring costs

     (87

)

     -

 

     (376 )

Stock-based compensation

    

(34,262

)

     (33,057

)

     (28,240

)

Corporate general, selling and administrative expenses

     (4,015

)

     (6,651

)

     (6,715

)

Consolidated operating income

   $ 157,419     $ 146,719     $ 136,178  

 

The Company has some integrated facilities that serve multiple segments. As such, asset and capital expenditure information by operating 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 operating 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 dis-aggregated 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,

  
   

2020

     2019    

2018

  
Consumables revenue - Protein Sciences   $

431,052

     $ 430,655     $ 384,350  

Consumables revenue - Diagnostics and Genomics

     171,590       158,324       150,388  

Total consumable revenue

   $ 602,642     $ 588,979     $ 534,738  

 

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

 

   

Year ended June 30,

  

Long-lived assets:

  

2020

     2019  

United States and Canada

   $ 162,039     $ 138,016  

Europe

     13,120       14,439  

Asia

     1,670       1,584  

Total long-lived assets

   $ 176,829     $ 154,039  

Intangible assets:

                

United States and Canada

   $ 499,875     $ 556,951  

Europe

     12,349       16,637  

Asia

     4,321       5,841  

Total intangible assets

   $ 516,545     $ 579,429  

 

Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation and other assets.