Business Segment Information

3 Months Ended

Mar. 29, 2014

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 Services (DS), 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 DS, safety assessment and Biologics Testing Services.

The following table presents sales and other financial information by business segment.

	Three Months Ended
	March 29, 2014		March 30, 2013
Research Models and Services
Revenue	$	185,615	$	182,489
Gross margin	80,979		80,435
Operating income	53,540		55,303
Depreciation and amortization	10,690		9,873
Capital expenditures	6,868		4,010
Preclinical Services
Revenue	$	113,753	$	108,749
Gross margin	27,834		23,776
Operating income	12,033		8,060
Depreciation and amortization	9,361		10,137
Capital expenditures	4,322		2,418

A reconciliation of segment operating income to consolidated operating income is as follows:

	Three Months Ended
	March 29, 2014			March 30, 2013
Total segment operating income	$	65,573		$	63,363
Unallocated corporate overhead	(25,867		)	(20,600		)
Consolidated operating income	$	39,706		$	42,763

Revenue for each significant product or service area are as follows:

	Three Months Ended
	March 29, 2014		March 30, 2013
Research models	$	99,355	$	103,123
Research model services	53,795		52,154
EMD	32,465		27,212
Total research models and services	185,615		182,489
Total preclinical services	113,753		108,749
Total revenue	$	299,368	$	291,238

A summary of unallocated corporate overhead consists of the following:

	Three Months Ended
	March 29, 2014		March 30, 2013
Stock-based compensation expense	$	3,702	$	3,197
U.S. retirement plans	644		1,300
Audit, tax and related expense	1,906		1,235
Salary and bonus	6,139		4,755
Global IT	2,869		2,586
Employee health, long-term disability and fringe benefit expense	2,319		2,228
Consulting and professional services	1,182		688
Depreciation expense	1,600		1,570
Other general unallocated corporate expenses	5,506		3,041
Total unallocated corporate overhead costs	$	25,867	$	20,600

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