Business Segment Information

12 Months Ended

Dec. 31, 2012

Business Segment Information

Business Segment Information

Note 20—Business Segment Information

        The Company has determined that it has four operating segments based on the information reviewed by the Chief Operating Decision Maker, representing each of its four groups or divisions: the Bruker BioSpin group, the Bruker CALID group, the Bruker MAT group, and Bruker Energy & Supercon Technologies division. The Bruker BioSpin group is in the business of designing, manufacturing and distributing enabling life science tools based on magnetic resonance technology. The Bruker CALID group combines the Bruker Daltonics, Bruker Chemical and Applied Markets, Bruker Detection and Bruker Optics divisions and is in the business of designing, manufacturing, and distributing mass spectrometry and chromatography instruments and solutions for life sciences, including proteomics, metabolomics, and clinical research applications. The Company's mass spectrometry and chromatography instruments also provide solutions for applied markets that include food safety, environmental analysis and petrochemical analysis. Bruker CALID also designs, manufactures, and distributes various analytical instruments for CBRNE detection and research, as well as analytical, research and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies. The Bruker MAT group comprises the Bruker AXS, Bruker Nano Surfaces, Bruker Nano Analytics and Bruker Elemental divisions and is in the business of manufacturing and distributing advanced X-ray, spark-optical emission spectroscopy, atomic force microscopy and stylus and optical metrology instrumentation used in non-destructive molecular, materials and elemental analysis. The Bruker Energy & Supercon Technologies division is in the business of developing and producing low temperature superconductor and high temperature superconductor materials for use in advanced magnet technology and energy applications as well as linear accelerators, accelerator cavities, insertion devices, other accelerator components and specialty superconducting magnets for physics and energy research and a variety of other scientific applications.

        The Company's reportable segments are organized by the types of products and services provided. The Company has combined the Bruker BioSpin, Bruker CALID and Bruker MAT operating segments into the Scientific Instruments reporting segment because each has similar economic characteristics, product processes and services, types and classes of customers, methods of distribution and regulatory environments.

        Selected business segment information is presented below for the years ended December 31, (in millions):

	2012			2011			2010
Revenue:
Scientific Instruments	$	1,666.1		$	1,554.1		$	1,225.1
Energy & Supercon Technologies		136.2			113.4			90.5
Eliminations (a)		(10.9	)		(15.8	)		(10.7	)
Total revenue	$	1,791.4		$	1,651.7		$	1,304.9
Operating Income (Loss):
Scientific Instruments	$	140.8		$	162.8		$	160.5
Energy & Supercon Technologies		12.8			(4.1	)		(2.6	)
Corporate, eliminations and other (b)		2.4			(3.1	)		(2.2	)
Total operating income	$	156.0		$	155.6		$	155.7

(a)

Represents product and service revenue between reportable segments.

(b)

Represents corporate costs and eliminations not allocated to the reportable segments.

        The Company recorded an impairment of assets within the Scientific Instruments segment of $22.6 million for the year ended December 31, 2012, comprising goodwill and definite-lived intangible asset impairment charges of $1.4 million and $16.4 million, respectively, in our CAM division as a result of experiencing increased deterioration in its financial performance, and an impairment charge of $4.8 million of other long-lived assets to reduce the carrying value to their estimated fair value. The Company recorded an impairment of assets of $1.2 million within the Energy & Supercon Technologies segment for the year ended December 31, 2012 to reduce the carrying value of certain tangible long-lived assets to their estimated fair value.

        Total assets by segment as of and for the years ended December 31, are as follows (in millions):

	2012			2011
Assets:
Scientific Instruments	$	1,786.2		$	1,675.0
Energy & Supercon Technologies		134.4			104.4
Eliminations and other (a)		(64.2	)		(68.9	)
Total assets	$	1,856.4		$	1,710.5

(a)

Assets not allocated to the reportable segments and eliminations of intercompany transactions.

        Total capital expenditures and depreciation and amortization by segment are presented below for the years ended December 31, (in millions):

	2012		2011		2010
Capital Expenditures:
Scientific Instruments	$	60.1	$	52.3	$	26.6
Energy & Supercon Technologies		12.7		9.3		5.3
Total capital expenditures	$	72.8	$	61.6	$	31.9
Depreciation and Amortization:
Scientific Instruments	$	54.6	$	49.1	$	32.8
Energy & Supercon Technologies		4.5		3.8		3.3
Total depreciation and amortization	$	59.1	$	52.9	$	36.1

        Revenue and property, plant and equipment by geographical area as of and for the year ended December 31, are as follows (in millions):

	2012		2011		2010
Revenue:
United States	$	377.4	$	309.2	$	264.0
Germany		174.8		195.3		181.6
Rest of Europe		531.2		483.2		384.1
Asia Pacific		570.6		500.7		342.7
Other		137.4		163.3		132.5
Total revenue	$	1,791.4	$	1,651.7	$	1,304.9

	2012		2011
Property, plant and equipment:
United States	$	53.7	$	44.9
Germany		155.3		132.2
Rest of Europe		63.5		60.3
Asia Pacific		6.0		7.3
Other		5.1		4.3
Total property, plant and equipment, net	$	283.6	$	249.0