Industry Segment Information |
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 |
|
|