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Reportable Segments and Major Concentration Data
12 Months Ended
Sep. 30, 2019
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 Quebec City, Canada, 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,
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,
 
2019
   
2018
   
2017
 
Customer A
 
$
 18,096
 
 
 
 
 
 
(9
)%
  $
 21,162
     
(10
)%
 
 
 
 
$
 22,397
     
(11
)%
Customer B
 
$
 17,350
 
 
 
 
 
 
(9
)%
  $
 22,490
     
(11
)%   $
 17,825
     
(9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable from these two Diagnostics customers accounted for 13% and 12% of consolidated accounts receivable at September 30, 2019 and September 30, 2018, respectively. The Company’s international revenues totaled approximately $76,430, $72,548 and $66,682 in fiscal 2019, 2018 and 2017, respectively, and our three major product families – gastrointestinal, respiratory illnesses and blood chemistry – accounted for 57%, 59% and 60% of consolidated net revenues in fiscal 2019, 2018 and 2017, respectively. We currently purchase on a sole-source basis from a U.S. manufacturer the instruments on which our Alethia molecular testing platform operates. Additionally, two of our foodborne products sourced from another vendor accounted for 9%, 9% and 10% of third-party revenues for our Diagnostics segment in fiscal 2019, 2018 and 2017, 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,
 
2019
 
 
2018
   
2017
 
United States
 
$
 
105,648
 
 
$
 
120,555
   
$
114,494
 
Italy
 
 
10,898
 
   
10,398
     
9,004
 
France
 
 
2,442
 
   
2,353
     
1,845
 
United Kingdom
 
 
2,397
 
   
2,340
     
1,778
 
Puerto Rico
 
 
2,276
 
   
1,054
     
730
 
Japan
 
 
1,571
 
   
1,307
     
2,421
 
Belgium
 
 
1,465
 
   
1,711
     
1,507
 
Holland
 
 
1,411
 
   
1,454
     
1,290
 
Other countries
 
 
8,574
 
   
9,282
     
10,452
 
                         
Total Diagnostics
 
$
 
136,682
 
 
$
 
150,454
   
$
 
143,521
 
                         
 
 
 
 
Year Ended September 30,
 
2019
 
 
2018
   
2017
 
United States
 
$
 
18,936
 
 
 
$
 
20,468
 
 
 
 
 
$
 
19,595
 
Germany
 
 
12,664
 
   
8,108
     
7,406
 
China
 
 
8,460
 
   
8,347
     
5,898
 
United Kingdom
 
 
4,714
 
   
5,201
     
5,579
 
Spain
 
 
4,415
 
   
4,187
     
3,209
 
Australia
 
 
3,461
 
   
3,631
     
4,002
 
France
 
 
2,200
 
   
2,040
     
1,792
 
Japan
 
 
1,624
 
   
1,932
     
1,375
 
Italy
 
 
1,357
 
   
971
     
700
 
South Korea
 
 
1,134
 
   
2,044
     
2,308
 
Other countries
 
 
5,367
 
   
6,188
     
5,386
 
                         
Total Life Science
 
$
64,332
 
 
$
63,117
   
$
 
57,250
 
                         
 
 
 
 
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, 2019
: U.K – $22,963
; Germany – $
7,141
; Italy – $
7,557
; and Australia – $
1,392
 
As of September 30, 2018
: U.K – $14,816; Germany – $7,706; Italy – $7,334; and Australia – $3,543 
Segment information for the interim periods is as follows:
                                         
 
Diagnostics
 
 
Life Science
 
 
Corporate
(1)
 
 
Eliminations
(2)
 
 
Total
 
Fiscal 2019
 
Net revenues -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third-party
  $
136,682
    $
64,332
    $
—  
    $
 
 
—  
    $
201,014
 
Inter-segment
   
462
     
361
     
 
 
     
(823
)    
 
 
 
Operating income
   
22,399
     
20,572
     
(10,373
)    
101
     
32,699
 
Depreciation and amortization
   
7,676
     
2,288
     
—  
     
—  
     
9,964
 
Capital expenditures
   
2,049
     
1,748
     
     
—  
     
3,797
 
Goodwill
   
70,395
     
18,846
     
—  
     
—  
     
89,241
 
Other intangible assets, net
   
59,807
     
436
     
—  
     
—  
     
60,243
 
Total assets
   
255,169
     
70,392
     
—  
     
(83
)    
325,478
 
                                         
Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenues -
   
     
     
     
     
 
Third-party
  $
150,454
    $
63,117
    $
—  
    $
—  
    $
213,571
 
Inter-segment
   
392
     
397
     
 
 
     
(789
)    
—  
 
Operating income
   
32,569
     
13,799
     
(15,076
)    
292
     
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, net
   
22,068
     
1,045
     
—  
     
—  
     
23,113
 
Total assets
   
180,978
     
70,341
     
—  
     
58
     
251,377
 
                                         
 
 
 
 
Fiscal 2017
 
Net revenues -
   
     
     
     
     
 
Third-party
  $
 143,521
    $
 57,250
    $
—  
    $
—  
    $
 200,771
 
Inter-segment
   
389
     
537
     
—  
     
(926
)    
 
 
 
Operating income
   
34,124
     
14,086
     
(11,097
)
 
   
269
     
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, net
   
24,973
     
1,731
     
—  
     
—  
     
26,704
 
Total assets
   
180,226
     
69,938
     
—  
     
(387
)    
249,777
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes Restructuring and Selected Legal
Costs of $2,596, $7,779 and $762 in fiscal years 2019, 2018 and 2017, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Eliminations consist of inter-segment transactions.
 
 
 
A reconciliation of segment operating
 
income
to consolidated earnings before income taxes for the years ended September 30, 2019, 2018 and 2017 is as follows:
                         
Year Ended September 30,
 
2019
 
 
2018
   
2017
 
Segment operating income
 
$
43,072
 
  $
46,660
    $
48,479
 
Corporate expenses
 
 
(10,373
)
 
 
(15,076
)
 
 
(11,097
)
Interest income
 
 
681
 
   
418
     
171
 
Interest expense
 
 
(1,945
)
   
(1,520
)    
(1,642
)
Other, net
 
 
122
 
   
(102
)    
518
 
                         
Consolidated earnings before income taxes
 
$
31,557
 
  $
30,380
    $
36,429
 
                         
 
 
 
 
 
Transactions between segments are accounted for at established intercompany prices for internal and management purposes with all intercompany amounts eliminated in consolidation.