Segment and Related Information

12 Months Ended

Jun. 30, 2013

Segment and Related Information

(10) Segment and Related Information

The Company’s business units have been aggregated into three reportable segments: (i) research, (ii) molecular diagnostics and (iii) companion diagnostics. The research segment is focused on the discovery of genes related to major common diseases and includes corporate services such as finance, human resources, legal, and information technology. The molecular diagnostics segment provides testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to ensure optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The companion diagnostics segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 1). The Company evaluates segment performance based on income (loss) before interest income and other income and expense.

(In thousands)	Research			Molecular diagnostics		Companion diagnostics			Total
Year ended June 30, 2013:
Revenues	$	—		$	582,392	$	30,773		$	613,165
Depreciation and amortization		2,182			4,974		1,733			8,889
Segment operating income (loss)		(56,428	)		291,509		(7,079	)		228,002
Year ended June 30, 2012:
Revenues	$	—		$	472,390	$	23,615		$	496,005
Depreciation and amortization		2,021			5,395		1,653			9,069
Segment operating income (loss)		(49,231	)		237,737		(8,188	)		180,318
Year ended June 30, 2011:
Revenues	$	—		$	400,046	$	2,038		$	402,084
Depreciation and amortization		1,976			5,105		138			7,219
Segment operating income (loss)		(48,651	)		206,840		(411	)		157,778

	Years Ended June 30,
(In thousands)	2013			2012			2011
Total operating income for reportable segments	$	228,002		$	180,318		$	157,778
Unallocated amounts:
Interest income		5,497			4,629			2,226
Other		(223	)		(407	)		(353	)
Income from operations before income taxes		233,276			184,540			159,651
Income tax provision		86,137			72,389			58,941
Net income	$	147,139		$	112,151		$	100,710

The following table sets forth a comparison of balance sheet assets by operating segment:

	June 30,
(In thousands)	2013		2012
Net equipment and leasehold improvements:
Research	$	8,590	$	8,924
Molecular diagnostics		15,769		12,852
Companion diagnostics		3,243		2,455
Total	$	27,602	$	24,231
Total Assets:
Research	$	82,517	$	77,221
Molecular diagnostics		110,329		72,777
Companion diagnostics		79,911		86,413
Total	$	272,757	$	236,411

The following table reconciles assets by operating segment to total assets:

	June 30,
(In thousands)	2013		2012
Total assets by segment	$	272,757	$	236,411
Cash, cash equivalents, and marketable investment securities (1)		531,064		454,224
Total	$	803,821	$	690,635

(1) The Company manages cash, cash equivalents, and marketable investment securities at the consolidated level for all segments

The majority of the Company’s revenues were derived from the sale of molecular diagnostic tests in the United States. There were no customers that accounted for greater than 10% of revenue in the years ended June 30, 2013, 2012 and 2011.

Additionally, the majority of the Company’s long-lived assets are located in the United States.