Reportable Segment and Major Customers Information

6 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Reportable Segment and Major Customers Information

15. Reportable Segment and Major Customers Information

The Company’s reportable segments maintain separate financial information for which results of operations are evaluated on a regular basis by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company records the direct costs of business operations to the reportable segments, including allocations for certain corporate-wide costs such as treasury management, human resources and technology, among others. Corporate provides certain executive management and administrative services to each reportable segment. These services primarily include executive oversight by non-segment-specific executives, including the Board of Directors, along with certain other corporate-wide support functions such as insurance, legal and business development. The Company generally does not allocate these types of corporate expenses to the reportable segments.

Reportable segment and corporate information for the interim periods is as follows:

	Diagnostics			Life Science		Corporate(1)			Eliminations(2)			Total
Three Months Ended March 31, 2022
Net revenues -
Third-party	$	41,103		$	70,128	$	—		$	—		$	111,231
Inter-segment		113			32		—			(145	)		—
Operating income (loss)		1,589			40,286		(5,752	)		18			36,141
Goodwill (March 31, 2022)		94,528			19,511		—			—			114,039
Other intangible assets, net (March 31, 2022)		79,056			2		—			—			79,058
Total assets (March 31, 2022)		355,754			116,090		—			(34	)		471,810
Three Months Ended March 31, 2021
Net revenues -
Third-party	$	31,949		$	53,315	$	—		$	—		$	85,264
Inter-segment		116			91		—			(207	)		—
Operating income (loss)		2,641			36,025		(4,481	)		16			34,201
Goodwill (September 30, 2021)		94,904			19,764		—			—			114,668
Other intangible assets, net (September 30, 2021)		84,149			2		—			—			84,151
Total assets (September 30, 2021)		339,208			110,536		—			(22	)		449,722
Six Months Ended March 31, 2022
Net revenues -
Third-party	$	74,307		$	125,265	$	—		$	—		$	199,572
Inter-segment		147			87		—			(234	)		—
Operating (loss) income		(174	)		66,888		(10,323	)		33			56,424
Six Months Ended March 31, 2021
Net revenues -
Third-party	$	62,270		$	115,911	$	—		$	—		$	178,181
Inter-segment		185			109		—			(294	)		—
Operating income (loss)		1,683			75,754		(8,600	)		28			68,865

(1)  Includes selected legal costs of $508 and $789 in the three and six months ended March 31, 2022, respectively, and $1,030 and $2,257 in the three and six months ended March 31, 2021, respectively. 

(2)  Eliminations consist of inter-segment transactions.

A reconciliation of reportable segment operating income (loss) to consolidated earnings before income taxes is as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2022			2021			2022			2021
Operating income (loss):
Diagnostics segment	$	1,589		$	2,641		$	(174	)	$	1,683
Life Science segment		40,286			36,025			66,888			75,754
Eliminations		18			16			33			28
Total segment operating income		41,893			38,682			66,747			77,465
Corporate operating expenses		(5,752	)		(4,481	)		(10,323	)		(8,600	)
Interest income		2			6			3			15
Interest expense		(341	)		(472	)		(713	)		(1,006	)
RADx initiative grant income		—			200			—			1,000
Other, net		733			(883	)		572			(1,574	)
Consolidated earnings before income taxes	$	36,535		$	33,052		$	56,286		$	67,300

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

Net revenues generated by the Company’s three major Diagnostics segment product families – gastrointestinal, respiratory illnesses and blood chemistry – accounted for 30% and 28% of consolidated net revenues during the three months ended March 31, 2022 and 2021, respectively, and 31% and 27% during the six months ended March 31, 2022 and 2021, respectively.

Individual Diagnostics or Life Science segment customers, including their affiliates, comprising 10% or more of reportable segment net revenues were as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2022			2021			2022			2021
Diagnostics
Customer A		6	%		10	%		9	%		11	%
Customer B		9	%		10	%		10	%		10	%
Customer C		9	%		11	%		10	%		11	%
Life Science
Customer D		13	%		9	%		13	%		14	%
Customer E		22	%		2	%		22	%		2	%

During the three and six months ended March 31, 2022 and 2021, no individual Diagnostics segment customer accounted for 10% or more of consolidated net revenues, while one Life Science segment customer (Customer E above) comprised 14% of consolidated net revenues during both the three and six months ended March 31, 2022, and 1% of consolidated net revenues during the corresponding fiscal 2021 interim periods.

In addition, during both the three and six months ended March 31, 2022, the Life Science segment’s ten largest customers, including their affiliates, accounted for approximately 62% of Life Science segment net revenues and 39% of consolidated net revenues. During the three and six months ended March 31, 2021, the Life Science segment’s ten largest customers accounted for approximately 48% of Life Science segment net revenues and 30% of consolidated net revenues.

No Diagnostics or Life Science segment customer accounted for greater than 10% of consolidated accounts receivable as of March 31, 2022, while one Diagnostics segment customer (Customer B above) and one Life Science segment customer (Customer D above) accounted for approximately 12% and 10%, respectively, of consolidated accounts receivable as of September 30, 2021.