Industry Segment and Geographic Area Information

The Company discloses information about its operating segments based on the way that management organizes the segments within the Company for making operating decisions and assessing financial performance. The Company evaluates the performance of its operating segments based on revenue and operating income. Intersegment revenue and transfers are not significant. The accounting policies of the operating segments are the same as those described in Note 1.

The principal products and services of the Company's two operating segments are:


•	Discovery & Analytical Solutions. Provides products and services targeted towards the life sciences and applied markets.


•	Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, emerging market diagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.

The Company has included the expenses for its corporate headquarters, such as legal, tax, audit, human resources, information technology, and other management and compliance costs, as well as the activity related to the mark-to-market adjustment on postretirement benefit plans, as “Corporate” below. The Company has a process to allocate and recharge expenses to the reportable segments when these costs are administered or paid by the corporate headquarters based on the extent to which the segment benefited from the expenses. These amounts have been calculated in a consistent manner and are included in the Company’s calculations of segment results to internally plan and assess the performance of each segment for all purposes, including determining the compensation of the business leaders for each of the Company’s operating segments.

Revenue and operating income (loss) from continuing operations by operating segment are shown in the table below for the fiscal years ended:



	December 30, 2018			December 31, 2017			January 1, 2017
	(In thousands)
Discovery & Analytical Solutions
Product revenue	$	1,010,899		$	941,328		$	934,098
Service revenue	682,312			637,131			578,886
Total revenue	1,693,211			1,578,459			1,512,984
Operating income from continuing operations⁽¹⁾	230,481			205,259			196,508
Diagnostics
Product revenue	924,594			536,086			462,798
Service revenue	160,191			142,437			139,735
Total revenue	1,084,785			678,523			602,533
Operating income from continuing operations⁽²⁾	153,196			146,862			147,996
Corporate
Operating loss from continuing operations	(59,793		)	(56,506		)	(49,922		)
Continuing Operations
Product revenue	1,935,493			1,477,414			1,396,896
Service revenue	842,503			779,568			718,621
Total revenue	2,777,996			2,256,982			2,115,517
Operating income from continuing operations	323,884			295,615			294,582
Interest and other expense, net (see Note 7)	66,201			(1,103		)	50,514
Income from continuing operations before income taxes	$	257,683		$	296,718		$	244,068

____________________________


⁽¹⁾	Legal costs for significant litigation matters in the Company's Discovery & Analytical Solutions segment were $5.3 million for fiscal year 2018 and $2.7 million for fiscal year 2017.


⁽²⁾	Legal costs for a significant litigation matter in the Company's Diagnostics segment were $0.2 million for fiscal year 2018.

Additional information relating to the Company’s reporting segments is as follows for the three fiscal years ended December 30, 2018:



	Depreciation and Amortization Expense						Capital Expenditures
	December 30, 2018		December 31, 2017		January 1, 2017		December 30, 2018		December 31, 2017		January 1, 2017
	(In thousands)						(In thousands)
Discovery & Analytical Solutions	$	70,362	$	72,590	$	72,484	$	34,852	$	26,200	$	21,486
Diagnostics	107,434		31,204		25,339		54,737		11,262		8,556
Corporate	2,792		1,206		2,149		3,664		1,627		1,660
Continuing operations	$	180,588	$	105,000	$	99,972	$	93,253	$	39,089	$	31,702
Discontinued operations	$	—	$	929	$	6,266	$	—	$	182	$	1,302



	Total Assets
	December 30, 2018		December 31, 2017		January 1, 2017
	(In thousands)
Discovery & Analytical Solutions	$	2,567,054	$	2,611,737	$	2,612,757
Diagnostics	3,358,964		3,447,437		1,505,381
Corporate	49,504		32,289		31,171
Current and long-term assets of discontinued operations	—		—		127,374
Total assets	$	5,975,522	$	6,091,463	$	4,276,683

The following geographic area information for continuing operations includes revenue based on location of external customers for the three fiscal years ended December 30, 2018 and net long-lived assets based on physical location as of December 30, 2018 and December 31, 2017:



	Revenue
	December 30, 2018		December 31, 2017		January 1, 2017
	(In thousands)
U.S.	$	906,398	$	837,018	$	842,364
International:
China	559,865		374,931		336,728
United Kingdom	72,124		65,164		65,904
Germany	142,411		91,669		89,839
India	92,327		84,812		43,891
Italy	95,908		77,477		70,948
France	97,990		80,153		71,104
Japan	79,238		76,322		65,980
Other international	731,735		569,436		528,759
Total international	1,871,598		1,419,964		1,273,153
Total sales	$	2,777,996	$	2,256,982	$	2,115,517



	Net Long-Lived Assets
	December 30, 2018		December 31, 2017		January 1, 2017
	(In thousands)
U.S.	$	201,649	$	210,116	$	182,186
International:
Germany	99,181		88,249		1,292
China	61,261		64,815		36,458
United Kingdom	33,429		28,028		14,638
India	14,636		14,820		2,020
Finland	16,211		14,764		12,295
Italy	11,324		10,334		3,398
Singapore	14,942		9,240		6,820
Brazil	8,237		7,963		1,452
Netherlands	3,750		4,281		4,162
Sweden	3,038		3,869		2,645
Other international	22,653		19,565		7,684
Total international	288,662		265,928		92,864
Total net long-lived assets	$	490,311	$	476,044	$	275,050