Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Information

v3.2.0.727
Note 12 - Segment Information
 12 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note 12.
Segment Information:
 
The Company has three reportable segments based on the nature of its products; they are Biotechnology, Clinical Controls, and Protein Platforms.
 
The Company’s Biotechnology reporting segment develops, manufactures and sells biotechnology research and diagnostic products world-wide. No customer in the Biotechnology segment accounted for more than 10% of the segments net sales for the years ended June 30, 2015, 2014 and 2013.
 
The Company’s Clinical Controls reporting segment develops and manufactures controls and calibrators for sale world-wide.
One customer accounted for approximately 13% and 14% of Clinical Controls’ net sales during fiscal 2015 and 2014 respectively. No single customer accounted for more than 10% of Clinical Controls’ net sales in fiscal 2013.
 
The Company’s Protein Platforms segment develops and commercializes proprietary systems and consumables for protein analysis. This segment was formed from the fiscal 2015 acquisitions of ProteinSimple and CyVek. No customer in the Protein Platforms segment accounted for more than 10% of the segments net sales for the years ended June 30, 2015.
 
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,
 
 
 
2015
 
 
20
14
 
 
20
13
 
External sales
                        
 
Biotechnology
   $ 325,897     $ 300,578     $ 288,156  
 Clinical Controls
     60,377       57,185       22,419  
Protein Platforms
     66,247       0       0  
Inter segment
     (273
)
     0       0  
Consolidated net sales
   $ 452,246     $ 357,763     $ 310,575  
 
 
 
Year Ended June 30,
 
 
 
2015
 
 
20
14
 
 
20
13
 
Operating Income                        
Biotechnology
   $ 171,059     $ 168,041     $ 164,886  
 
Clinical Controls
     18,148       17,556       8,746  
Protein Platforms
     4,469
 
     0       0  
 
Segment operating income
     193,675       185,597       173,632  
 Costs recognized upon sale of acquired inventory
     (6,958
)
     (7,480
)
     (4,501
)
Amortization of intangibles     (26,169 )     (10,276 )     (5,061 )
Acquisition related expenses     (4,519 )     (2,247 )     (607 )
Corporate general, selling and administrative expenses     (9,007 )     (5,845 )     (4,994 )
Consolidated operating income
   $ 147,022     $ 159,750     $ 158,469  
                         
Goodwill
                        
 
Biotechnology
   $ 119,450     $ 95,124     $ 84,336  
 
Clinical Controls
     56,349       56,349       0  
Protein Platforms
     214,839       0       0  
Consolidated goodwill
   $ 390,638     $ 151,473     $ 84,336  
                         
Intangible assets, net
                        
 
Biotechnology
   $ 68,777     $ 53,778     $ 40,552  
 
Clinical Controls
     49,130       54,998       0  
Protein Platforms
     174,932       0       0  
Consolidated intangible assets, net
   $ 292,839     $ 108,776     $ 40,552  
                         
Assets
                        
 
Biotechnology
   $ 439,377     $ 685,302     $ 580,085  
 
Clinical Controls
     66,101       55,615       24,887  
Protein Platforms
     444,899       0       0  
 
Segment assets
     950,378       740,917       604,972  
Corporate cash and available- for- sale investments
     52,800       60,142       108,504  
Corporate property and equipment
     58,270       60,350       61,296  
 Corporate, other
     1,912       1,082       3,326  
Consolidated assets
   $ 1,063,360     $ 862,491     $ 778,098  
                         
Depreciation and amortization
                        
 
Biotechnology
   $ 13,820     $ 10,879     $ 10,781  
 
Clinical Controls
     7,963       7,205       389  
Protein Platforms
     13,364       0       0  
 
Segment depreciation and amortization
     35,147       18,084       11,170  
 Corporate
     2,079       1,091       1,151  
Consolidated depreciation and amortization
   $ 37,226     $ 19,175     $ 12,321  
                         
Capital purchases
                        
 
Biotechnology
   $ 9,794     $ 4,157     $ 3,248  
 
Clinical Controls
     1,932       5,687       6,914  
Protein Platforms
     8,179                  
 
Segment capital purchases
     19,905       9,844       10,162  
 Corporate
     0       3,977       12,292  
Consolidated capital purchases
   $ 19,905     $ 13,821     $ 22,454  
 
The other reconciling items include the results of unallocated corporate expenses and the Company’s share of gain (losses) from its equity method investees.
 
Following is financial information relating to geographic areas (in thousands):
 
 
 
Year Ended June 30,
 
 
 
 
2015
 
 
20
14
 
 
20
13
 
 
External sales
                          
 
United States
  $ 245,217     $ 190,359     $ 164,308    
 
Europe
     134,077       97,157       88,297    
China
     26,105       18,878       14,106    
Other Asia
     23,806       32,704       28,608    
 
Rest of world
    23,041       18,665       15,256    
Total external sales
   $ 452,246     $ 357,763     $ 310,575    
Long-lived assets
                          
 
United States and Canada
   $ 119,075     $ 109,790     $ 103,541  
 
Europe
     11,239       8,340       7,129    
China
     1,286       678       117    
Total long-lived assets
   $ 131,600     $ 118,808     $ 110,787    
 
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.