Reportable Segments and Major Concentration Data

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Reportable Segments and Major Concentration Data

(10) Reportable Segments and Major Concentration Data

Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of: (i) manufacturing operations for infectious disease products in Cincinnati, Ohio; Quebec City, Canada; and Modi’in, Israel; (ii) manufacturing operations for blood chemistry products in Billerica, Massachusetts (near Boston); and (iii) the sale and distribution of diagnostics products domestically and abroad.

The Life Science segment consists of: (i) manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; and Luckenwalde, Germany; and (ii) 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, with outsourced distribution capabilities, in Beijing, China to pursue revenue opportunities in Asia.

Two Diagnostics customers accounted for 10% and 11%, respectively, of consolidated net revenues in fiscal 2018, with no individual customers from either reportable segment accounting for 10% or more of consolidated net revenues in either fiscal 2020 or fiscal 2019. However, during fiscal 2020, reportable segment revenues were concentrated as follows:

Diagnostics Segment

Two diagnostics distributors: 23% of segment revenues; 12% of consolidated revenues

Life Science Segment

Three diagnostic manufacturers: 27% of segment revenues; 14% of consolidated revenues

Accounts receivable from one of the Diagnostics customers accounted for 11% of consolidated accounts receivable at September 30, 2019, while one of the Life Science customers accounted for 15% of consolidated accounts receivable at September 30, 2020.

Revenue generated by the Company outside of the U.S. and its territories totaled approximately $121,596, $74,193 and $71,494 in fiscal 2020, 2019 and 2018, respectively, and our three major product families – gastrointestinal, respiratory illnesses and blood chemistry – accounted for 39%, 57% and 59% of consolidated net revenues in fiscal 2020, 2019 and 2018, respectively. In addition, products related to COVID-19 accounted for approximately 28% of consolidated fiscal 2020 revenues.

We currently purchase on a sole-source basis from a U.S. manufacturer the instruments on which our Alethia molecular testing platform operates, and from an Australian manufacturer the instruments on which our Curian testing platform operates.

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,	2020		2019		2018
United States and territories	$	95,382	$	107,890	$	121,609
Italy		9,797		10,911		10,398
United Kingdom		2,312		2,396		2,340
France		2,238		2,446		2,353
Belgium		1,440		1,468		1,711
Holland		1,183		1,413		1,454
Japan		848		1,572		1,307
Other countries		7,932		8,586		9,282
Total Diagnostics	$	121,132	$	136,682	$	150,454

Year Ended September 30,	2020		2019		2018
United States and territories	$	36,689	$	18,931	$	20,468
China		19,047		8,464		8,347
United Kingdom		14,765		4,709		5,201
Germany		14,190		12,663		8,108
Spain		7,242		4,414		4,187
Australia		5,957		3,458		3,631
France		5,579		2,200		2,040
Italy		4,067		1,357		971
Japan		3,707		1,624		1,932
Holland		3,212		710		715
Indonesia		3,027		169		162
Turkey		2,819		290		188
Finland		2,518		500		467
India		2,099		143		251
South Korea		1,908		1,134		2,044
Other countries		5,709		3,566		4,405
Total Life Science	$	132,535	$	64,332	$	63,117

In locations outside the U.S., the Company’s identifiable assets were concentrated as follows at the end of the most recent fiscal years, with no additional country’s total of assets exceeding $5,000:

As of September 30,	2020		2019
Israel	$	70,097	$	—
United Kingdom		27,373		22,963
Germany		12,877		7,141
Canada		9,865		6,807
Italy		7,858		7,557

Segment information for the interim periods is as follows:

	Diagnostics		Life Science		Corporate(1)			Eliminations(2)			Total
Fiscal 2020
Net revenues -
Third-party	$	121,132	$	132,535	$	—		$	—		$	253,667
Inter-segment		326		261		—			(587	)		—
Operating income		3,885		68,826		(11,437	)		50			61,324
Depreciation and amortization		11,451		2,116		—			—			13,567
Capital expenditures		1,850		1,449		—			—			3,299
Goodwill		94,855		19,331		—			—			114,186
Other intangible assets, net		83,179		18		—			—			83,197
Total assets		306,812		98,483		—			(34	)		405,261
Fiscal 2019
Net revenues -
Third-party	$	136,682	$	64,332	$	—		$	—		$	201,014
Inter-segment		462		361		—			(823	)		—
Operating income		25,390		17,581		(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		34,603		11,765		(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

(1) Includes Restructuring and Selected Legal Costs of $2,080, $2,596 and $7,779 in fiscal years 2020, 2019 and 2018, 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, 2020, 2019 and 2018 is as follows:

Year Ended September 30,	2020			2019			2018
Segment operating income	$	72,761		$	43,072		$	46,660
Corporate expenses		(11,437	)		(10,373	)		(15,076	)
Interest income		142			681			418
Interest expense		(2,632	)		(1,945	)		(1,520	)
Other, net		459			122			(102	)
Consolidated earnings before income taxes	$	59,293		$	31,557		$	30,380

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