Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.2.2
Segment Information
12 Months Ended
Jun. 30, 2022
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, 2022, 2021, and 2020.

The Company’s Diagnostics and Genomics segment is comprised of diagnostics reagents, genomics, and molecular diagnostics, which includes 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 and molecular diagnostics consists of exosome-based diagnostics products for various pathologies, 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, 2022, 2021, and 2020.

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, 

2022

    

2021

    

2020

Net sales:

  

Protein Sciences

$

832,311

  

$

704,564

$

555,352

Diagnostics and Genomics

 

274,843

 

227,744

 

184,549

Intersegment

 

(1,555)

 

(1,276)

 

(1,210)

Consolidated net sales

$

1,105,599

  

$

931,032

$

738,691

Operating income:

 

  

 

  

 

  

Protein Sciences(1)

$

377,623

  

$

330,225

$

234,929

Diagnostics and Genomics

 

48,977

 

38,425

 

14,965

Segment operating income

 

426,600

 

368,650

 

249,894

Costs recognized on sale of acquired inventory

 

(1,596)

 

(1,565)

 

Amortization of acquisition related intangible assets

 

(73,054)

 

(64,239)

 

(60,865)

Impact of partially owned consolidated subsidiaries(1)

 

(2,393)

 

(1,505)

 

Gain on escrow settlement

7,169

Acquisition related expenses

 

19,070

 

(7,114)

 

(416)

Eminence impairment

(18,715)

Stock based compensation, inclusive of employer taxes

 

(46,401)

 

(51,846)

 

(34,262)

Restructuring costs

 

(1,640)

 

(142)

 

(87)

Corporate general, selling, and administrative expenses(1)

 

(5,281)

 

(4,943)

 

(4,015)

Consolidated operating income

$

296,590

  

$

237,296

$

157,419

(1)Adjusted operating income for fiscal 2021 have been updated for comparability to fiscal 2022 for the inclusion of the impact of partially-owned consolidated subsidiaries on the Company’s adjusted operating income.

The Company has some integrated facilities that serve both 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, 

    

2022

    

2021

    

2020

Consumables revenue - Protein Sciences

$

646,952

$

557,037

$

431,052

Consumables revenue - Diagnostics and Genomics

 

243,922

 

194,948

 

171,590

Total consumable revenue

$

890,874

$

751,985

$

602,642

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

Year ended June 30, 

    

2022

      

2021

Long-lived assets:

United States and Canada

$

203,732

  

$

190,501

Europe

   

 

16,223

 

13,949

Asia

 

3,287

 

3,457

Total long-lived assets

$

223,242

  

$

207,907

Intangible assets:

 

  

 

  

United States and Canada

$

523,536

  

$

594,512

Europe

 

6,281

 

9,369

Asia

 

1,705

 

12,087

Total intangible assets

$

531,522

  

$

615,968

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