Industry Segment Information

3 Months Ended

Apr. 05, 2020

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 to the audited consolidated financial statements in the 2019 Form 10-K.

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, immunodiagnostics 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:



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Discovery & Analytical Solutions
Product revenue	$	215,356		$	222,790
Service revenue	183,039			166,043
Total revenue	398,395			388,833
Operating income from continuing operations	28,513			36,927
Diagnostics
Product revenue	210,173			215,932
Service revenue	43,828			43,972
Total revenue	254,001			259,904
Operating income from continuing operations	29,591			31,486
Corporate
Operating loss from continuing operations	(13,422		)	(15,083		)
Continuing Operations
Product revenue	425,529			438,722
Service revenue	226,867			210,015
Total revenue	652,396			648,737
Operating income from continuing operations	44,682			53,330
Interest and other expense, net (see Note 5)	9,993			16,565
Income from continuing operations before income taxes	$	34,689		$	36,765