Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Information

v3.5.0.2
Note 12 - Segment Information
 12 Months Ended
Jun. 30, 2016
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, 2016, 2015, and 2014,.
 
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. One customer did not account for net sales over 10% during 2016. 
 
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, 2016 and 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,
 
 
 
201
6
 
 
201
5
 
 
201
4
 
External sales
                        
Biotechnology
   $ 317,340     $ 308,437     $ 285,142  
Clinical Controls
     104,484       77,866       72,621  
Protein Platforms
     77,324       66,249       0  
Inter segment
     (125
)
     (306
)
     0  
Consolidated net sales
   $ 499,023     $ 452,246     $ 357,763  
 
 
 
 
Year Ended June 30,
 
 
 
201
6
 
 
201
5
 
 
201
4
 
Operating Income
                        
Biotechnology
   $ 168,613     $ 165,226     $ 162,621  
Clinical Controls
     30,412       23,981       22,976  
Protein Platforms
     3,592       4,469       0  
Segment operating income
     202,617       193,676       185,597  
Costs recognized upon sale of acquired inventory
     (5,431
)
     (6,952
)
     (7,480
)
Amortization of intangibles
     (29,395
)
     (26,169
)
     (10,276
)
Stock based compensation
     (9,430
)
     (5,957
)
     (3,523
)
Acquisition related expenses
     (2,761
)
     (4,519
)
     (2,247
)
Corporate general, selling and administrative expenses
     (5,007
)
     (3,056
)
     (2,321
)
Consolidated operating income
   $ 150,593     $ 147,023     $ 159,750  
                         
Goodwill
                        
Biotechnology
   $ 105,380     $ 115,198     $ 90,872  
Clinical Controls
     106,692       60,601       60,601  
Protein Platforms
     218,810       214,839       0  
Consolidated goodwill
   $ 430,882     $ 390,638     $ 151,473  
                         
Intangible assets, net
                        
Biotechnology
   $ 57,199     $ 68,777     $ 53,778  
Clinical Controls
     86,736       49,130       54,998  
Protein Platforms
     166,589       174,932       0  
Consolidated intangible assets, net
   $ 310,524     $ 292,839     $ 108,776  
                         
Assets
                        
Biotechnology
   $ 387,470     $ 430,524     $ 674,854  
Clinical Controls
     212,649       74,954       66,072  
Protein Platforms
     440,343       444,899       0  
Segment assets
     1,040,462       950,378       740,917  
Corporate cash and available- for- sale investments
     31,255       52,800       60,142  
Corporate property and equipment
     56,195       58,270       60,350  
Corporate, other
     1,669       1,912       1,082  
Consolidated assets
   $ 1,129,581     $ 1,063,360     $ 862,491  
                         
Depreciation and amortization
                        
Biotechnology
   $ 14,196     $ 13,820     $ 10,879  
Clinical Controls
     10,462       7,963       7,205  
Protein Platforms
     16,027       13,364       0  
Segment depreciation and amortization
     40,685       35,147       18,084  
Corporate
     2,079       2,079       1,091  
Consolidated depreciation and amortization
   $ 42,764     $ 37,226     $ 19,175  
                         
Capital purchases
                        
Biotechnology
   $ 14,295     $ 9,794     $ 4,157  
Clinical Controls
     1,780       1,932       5,687  
Protein Platforms
     823       8,179          
Segment capital purchases
     16,898       19,905       9,844  
Corporate
     0       0       3,977  
Consolidated capital purchases
   $ 16,898     $ 19,905     $ 13,821  
 
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,
 
 
 
 
201
6
 
 
201
5
 
 
201
4
 
 
External sales
                          
United States
  $ 283,270     $ 245,217     $ 190,359    
U.K.     88,680       68,055       55,144    
Other Europe     51,047       66,022       42,013    
China
      27,205       26,105       18,878    
Other Asia
     24,809       23,806       32,704    
Rest of world
    24,012       23,041       18,665    
Total external sales
   $  499,023     $ 452,246     $ 357,763    
Long-lived assets
                          
United States and Canada
   $ 118,027     $ 119,075     $ 109,790  
 
Europe
     14,423       11,239       8,340    
China
     1,109       1,286       678    
Total long-lived assets
   $ 133,559     $ 131,600     $ 118,808    
 
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.