XML 74 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Business Segment Information
3 Months Ended
Sep. 28, 2013
Segment Reporting [Abstract]  
Business Segment Information
BUSINESS SEGMENT INFORMATION
We report two business segments, Research Models and Services (RMS) and Preclinical Services (PCS). Our RMS segment includes sales of Research Models, Genetically Engineered Models and Services (GEMS), Insourcing Solutions (IS), Research Animal Diagnostic Services (RADS), Discovery Research Services (DRS), Endotoxin and Microbial Detection (EMD) products and services, and Avian Vaccine products and services. Our PCS segment includes services required to take a drug through the development process, which includes discovery services, safety assessment and biopharmaceutical services.
The following table presents sales and other financial information by business segment.
 
Three Months Ended
 
Nine Months Ended
 
September 28, 2013
 
September 29, 2012
 
September 28, 2013
 
September 29, 2012
Research Models and Services
 
 
 
 
 
 
 
Net sales
$
173,405

 
$
166,484

 
$
534,867

 
$
523,247

Gross margin
65,710

 
65,902

 
221,916

 
224,364

Operating income
40,260

 
43,389

 
145,193

 
158,398

Depreciation and amortization
16,876

 
9,670

 
37,378

 
27,697

Capital expenditures
6,110

 
7,423

 
16,464

 
27,892

Preclinical Services
 
 
 
 
 
 
 
Net sales
$
118,724

 
$
112,202

 
$
341,433

 
$
326,143

Gross margin
34,216

 
27,358

 
84,791

 
76,693

Operating income
18,636

 
10,975

 
37,631

 
25,958

Depreciation and amortization
10,039

 
10,880

 
29,957

 
32,920

Capital expenditures
2,986

 
2,819

 
8,855

 
5,903


A reconciliation of segment operating income to consolidated operating income is as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 28, 2013
 
September 29, 2012
 
September 28, 2013
 
September 29, 2012
Total segment operating income
$
58,896

 
$
54,364

 
$
182,824

 
$
184,356

Unallocated corporate overhead
(18,053
)
 
(16,682
)
 
(56,030
)
 
(53,660
)
Consolidated operating income
$
40,843

 
$
37,682

 
$
126,794

 
$
130,696


Net sales for each significant service area are as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 28, 2013
 
September 29, 2012
 
September 28, 2013
 
September 29, 2012
Research models
$
92,969

 
$
90,877

 
$
294,993

 
$
293,575

Research model services
52,105

 
53,400

 
156,661

 
163,247

EMD
28,331

 
22,207

 
83,213

 
66,425

Total research models and services
173,405

 
166,484

 
534,867

 
523,247

Total preclinical services
118,724

 
112,202

 
341,433

 
326,143

Total sales
$
292,129

 
$
278,686

 
$
876,300

 
$
849,390




A summary of unallocated corporate overhead consists of the following:
 
Three Months Ended
 
Nine Months Ended
 
September 28, 2013
 
September 29, 2012
 
September 28, 2013
 
September 29, 2012
Stock-based compensation expense
$
3,260

 
$
2,827

 
$
9,927

 
$
8,512

U.S. retirement plans
1,275

 
1,276

 
3,617

 
3,662

Audit, tax and related expense
811

 
842

 
3,135

 
2,133

Salary and bonus
5,831

 
4,813

 
16,057

 
14,602

Global IT
3,002

 
3,285

 
8,448

 
9,501

Employee health, long-term disability and fringe benefit expense
(1,470
)
 
(2,248
)
 
(898
)
 
(1,395
)
Consulting and professional services
1,439

 
1,061

 
3,443

 
3,581

Depreciation expense
1,570

 
1,554

 
4,712

 
4,693

Other general unallocated corporate expenses
2,335

 
3,272

 
7,589

 
8,371

Total unallocated corporate overhead costs
$
18,053

 
$
16,682

 
$
56,030

 
$
53,660


Other general unallocated corporate expenses consist of various departmental costs including those associated with senior executives, corporate accounting, legal, tax, human resources and treasury.