Segment Information

12 Months Ended

Jun. 30, 2014

Segment Information

L. Segment Information:

The Company has two reportable segments based on the nature of its products. The Company’s Biotechnology reporting segment develops, manufactures and sells biotechnology research and diagnostic products world-wide. The Company’s Clinical Controls reporting segment develops and manufactures controls and calibrators for sale world-wide. No customer in the Biotechnology segment accounted for more than 10% of the segments net sales for the years ended June 30, 2014, 2013 and 2012. One customer accounted for approximately 14% of Clinical Controls’ net sales during fiscal 2014. No single customer accounted for more than 10% of Clinical Controls’ net sales in fiscal 2013 or 2012. There are no concentrations of business transacted with a particular customer or supplier or concentrations of revenue from a particular product or geographic area that would severely impact the Company in the near term.

The accounting policies of the segments are the same as those described in Note A. In evaluating segment performance, management focuses on sales and earnings before taxes.

Following is financial information relating to the operating segments (in thousands):

	Year Ended June 30,
	2014			2013			2012
External sales
Biotechnology	$	300,578		$	288,156		$	293,274
Clinical Controls		57,185			22,419			21,286
Consolidated net sales	$	357,763		$	310,575		$	314,560
Earnings before taxes
Biotechnology	$	159,220		$	156,910		$	162,763
Clinical Controls		10,643			8,746			8,002
Segment earnings before taxes		169,863			165,656			170,765
Corporate		(8,471	)		(4,994	)		(8,570	)
Consolidated earnings before taxes	$	161,392		$	160,662		$	162,195
Goodwill
Biotechnology	$	95,124		$	84,336		$	85,682
Clinical Controls		56,349			0			0
Consolidated goodwill	$	151,473		$	84,336		$	85,682
Intangible assets, net
Biotechnology	$	53,778		$	40,552		$	46,476
Clinical Controls		54,998			0			0
Consolidated intangible assets, net	$	108,776		$	40,552		$	46,476

	Year Ended June 30,
	2014		2013		2012
Assets
Biotechnology	$	685,302	$	580,085	$	529,392
Clinical Controls		55,615		24,887		22,135
Segment assets		740,917		604,972		551,527
Corporate cash and available- for- sale investments		60,142		108,504		112,443
Corporate property and equipment		60,350		61,296		51,587
Corporate, other		1,082		3,326		3,767
Consolidated assets	$	862,491	$	778,098	$	719,324
Depreciation and amortization
Biotechnology	$	10,879	$	10,781	$	10,920
Clinical Controls		7,205		389		411
Segment depreciation and amortization		18,084		11,170		11,331
Corporate		1,091		1,151		1,136
Consolidated depreciation and amortization	$	19,175	$	12,321	$	12,467
Capital purchases
Biotechnology	$	4,157	$	3,248	$	4,021
Clinical Controls		5,687		6,914		597
Segment capital purchases		9,844		10,162		4,618
Corporate		3,977		12,292		1,399
Consolidated capital purchases	$	13,821	$	22,454	$	6,017

The other reconciling items include the results of unallocated corporate expenses and the Company’s share of gain (losses) from its equity method investees.

Following is financial information relating to geographic areas (in thousands):

	Year Ended June 30,
	2014		2013		2012
External sales
United States	$	190,359	$	164,308	$	172,310
Europe		97,157		88,297		90,142
China		18,878		14,106		11,378
Other Asia		32,704		28,608		25,988
Rest of world		18,665		15,256		14,742
Total external sales	$	357,763	$	310,575	$	314,560
Long-lived assets
United States	$	109,790	$	103,541	$	87,968
Europe		8,340		7,129		7,528
China		678		117		141
Total long-lived assets	$	118,808	$	110,787	$	95,637

External sales are attributed to countries based on the location of the customer or distributor. Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation and other assets.