Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Information

v3.21.2
Note 12 - Segment Information
 12 Months Ended
Jun. 30, 2021
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 and analytical solutions. 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, 2021, 2020, and 2019.

 

The Company's Diagnostics and Genomics segment is comprised of diagnostics reagents, genomics, and our Exosome and Asuragen acquisitions. Diagnostics reagents 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. Genomics, Exosome, and Asuragen 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, 2021, 2020, and 2019. 

 

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,

  
   

2021

     2020     2019  

Net sales:

                        

Protein Sciences

   $ 704,564     $ 555,352     $ 543,159  

Diagnostics and Genomics

     227,744       184,549       171,674  

Intersegment

     (1,276

)

     (1,210

)

     (827

)

Consolidated net sales

   $ 931,032     $ 738,691     $ 714,006  
                         

Operating Income:

                        

Protein Sciences

   $ 328,837     $ 234,929     $ 240,919  

Diagnostics and Genomics

     38,425       14,965       10,079  

Segment operating income

     367,262       249,894       250,998  

Costs recognized upon sale of acquired inventory

     (1,565 )     -

 

     (3,739

)

Amortization of acquired intangible assets

     (64,239

)

     (60,865

)

     (58,550

)

Gain on escrow settlement

     -       7,169       -  

Acquisition related expenses

     (7,114

)

     (416

)

     (2,282

)

Restructuring costs

     (142

)

     (87 )     -

 

Stock-based compensation, inclusive of employer taxes

     (51,846

)

     (34,262

)

     (33,057

)

Corporate general, selling and administrative expenses

     (5,060

)

     (4,015

)

     (6,651

)

Consolidated operating income

   $ 237,296     $ 157,419     $ 146,719  

 

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,

  
   

2021

     2020     2019  

Consumables revenue - Protein Sciences

   $ 557,037     $ 431,052     $ 430,655  

Consumables revenue - Diagnostics and Genomics

     194,948       171,590       158,324  

Total consumable revenue

   $ 751,985     $ 602,642     $ 588,979  

 

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

 

   

Year ended June 30,

  

Long-lived assets:

  

2021

     2020  

United States and Canada

   $ 190,501     $ 162,039  

Europe

     13,949       13,120  

Asia

     3,457       1,670  

Total long-lived assets

   $ 207,907     $ 176,829  

Intangible assets:

                

United States and Canada

   $ 594,512     $ 499,875  

Europe

     9,369       12,349  

Asia

     12,087       4,321  

Total intangible assets

   $ 615,968     $ 516,545  

 

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