Reportable Segments and Major Concentration Data

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Reportable Segments and Major Concentration Data

(9) Reportable Segments and Major Concentration Data

Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of manufacturing operations for infectious disease products in Cincinnati, Ohio, and manufacturing operations for products detecting elevated lead levels in blood in Billerica, Massachusetts (near Boston), and the sale and distribution of diagnostics products domestically and abroad. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; and Luckenwalde, Germany, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents domestically and abroad, including a sales and business development facility in Beijing, China to further pursue growing revenue opportunities in Asia.

Revenues from individual customers constituting 10% or more of consolidated net revenues are as follows:

Year Ended September 30,	2018				2017				2016
Customer A	$	22,490	(11	)%	$	22,397	(11	)%	$	20,246	(10	)%
Customer B	$	22,040	(10	)%	$	17,825	(9	)%	$	19,585	(10	)%

Accounts receivable from these two Diagnostics customers accounted for 12% and 11% of consolidated accounts receivable at September 30, 2018 and September 30, 2017, respectively. The Company’s international revenues totaled approximately $67,170, $61,812 and $54,606 in fiscal 2018, 2017 and 2016, respectively, and our three major product families – gastrointestinal, respiratory illnesses and blood chemistry – accounted for 59%, 60% and 66% of consolidated net revenues in fiscal 2018, 2017 and 2016, respectively. We currently purchase on a sole-source basis from a U.S. and an Italian manufacturer, respectively, the instruments on which our Alethia molecular testing platform operates and the LeadCare instruments used to test for blood lead levels. Additionally, two of our foodborne products sourced from another vendor accounted for 9%, 10% and 11% of third-party revenues for our Diagnostics segment in fiscal 2018, 2017 and 2016, respectively.

Significant revenue information by country for the Diagnostics and Life Science segments is as follows. Revenues are attributed to the geographic area based on the location to which the product is delivered.

Year Ended September 30,	2018		2017		2016
United States	$	125,959	$	119,332	$	122,264
Italy		7,648		6,601		6,717
France		2,363		1,856		1,619
United Kingdom		2,337		1,789		2,018
Belgium		1,719		1,517		1,471
Holland		1,460		1,297		1,215
Japan		1,263		2,209		1,665
Other countries		7,705		8,920		8,145
Total Diagnostics	$	150,454	$	143,521	$	145,114
Year Ended September 30,	2018		2017		2016
United States	$	20,442	$	19,627	$	19,212
China		8,329		5,893		4,077
Germany		8,198		7,400		6,999
United Kingdom		5,190		5,574		5,581
Spain		4,179		3,206		2,917
Australia		3,617		3,999		3,163
South Korea		2,040		2,306		1,043
France		2,037		1,791		1,054
Japan		1,928		1,374		1,542
Other countries		7,157		6,080		5,380
Total Life Science	$	63,117	$	57,250	$	50,968

In locations outside the U.S., the Company’s identifiable assets were concentrated as follows at the end of most recent fiscal years:

As of September 30, 2018: U.K – $14,816; Germany – $7,706; Italy – $7,334; and Australia – $3,543

As of September 30, 2017: U.K – $15,755; Germany – $6,915; Italy – $7,712; and Australia – $4,376

Segment information for the years ended September 30, 2018, 2017 and 2016 is as follows:

	Diagnostics		Life Science		Unallocated Costs and Eliminations (1)			Total
Fiscal Year 2018 -
Net revenues –
Third-party	$	150,454	$	63,117	$	—		$	213,571
Inter-segment		392		397		(789	)		—
Operating income		29,701		14,912		(13,029	)		31,584
Depreciation and amortization		6,557		2,131		—			8,688
Capital expenditures		2,477		1,724		—			4,201
Goodwill		35,213		19,424		—			54,637
Other intangible assets		22,068		1,045		—			23,113
Total assets		180,978		70,341		58			251,377
Fiscal Year 2017 -
Net revenues –
Third-party	$	143,521	$	57,250	$	—		$	200,771
Inter-segment		389		537		(926	)		—
Operating income		23,848		14,086		(552	)		37,382
Depreciation and amortization		7,037		2,053		—			9,090
Capital expenditures		2,554		1,913		—			4,467
Goodwill		35,213		19,713		—			54,926
Other intangible assets		24,973		1,731		—			26,704
Total assets		180,226		69,938		(387	)		249,777
Fiscal Year 2016 -
Net revenues –
Third-party	$	145,114	$	50,968	$	—		$	196,082
Inter-segment		289		893		(1,182	)		—
Operating income		38,202		12,997		179			51,378
Depreciation and amortization		5,471		2,247		—			7,718
Capital expenditures		2,690		1,314		—			4,004
Goodwill		42,608		19,374		—			61,982
Other intangible assets		27,534		2,321		—			29,855
Total assets		185,446		66,624		(42	)		252,028

(1) Unallocated costs for the fiscal years 2018 and 2017 total $13,051 and $762, respectively, and are comprised of Restructuring and Litigation Costs, as set forth within the accompanying Condensed Consolidated Statements of Operations. Eliminations consist of inter-segment transactions.    

A reconciliation of segment operating expenses to consolidated earnings before income taxes for the years ended September 30, 2018, 2017 and 2016 is as follows:

Year Ended September 30,	2018			2017			2016
Segment operating income	$	44,635		$	38,144		$	51,378
Restructuring and litigation costs		(13,051	)		(762	)		—
Interest income		418			171			67
Interest expense		(1,520	)		(1,642	)		(897	)
Other, net		(102	)		518			96
Consolidated earnings before income taxes	$	30,380		$	36,429		$	50,644

Transactions between segments are accounted for at established intercompany prices for internal and management purposes with all intercompany amounts eliminated in consolidation.