SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 17—SEGMENT AND GEOGRAPHIC INFORMATION

The Company reports segment information on the "management" approach which designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company has determined that its Chief Executive Officer is the Company's chief operating decision maker ("CODM") as he is responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure. Prior to 2012, the Company was organized as one reportable operating segment. Subsequent to the Acquisition, the Company's business was reorganized into two reportable operating segments for financial reporting purposes, Affymetrix Core and eBioscience.

Beginning in 2012, prior to the Acquisition, the Company reorganized its business in the following four business units: Expression, Genetic Analysis and Clinical Applications, Life Science Reagents, which the Company categorized into its reportable operating segment, Affymetrix Core, and Corporate. The reorganization into business units represented a fundamental change for the Company. The necessary information for the year ended December 31, 2010 is not disclosed as the cost to develop it would be excessive. The Expression business unit develops and markets the Company's gene expression products and services, including in vitro transcription and other whole transcript arrays and QuantiGene line targeted at low-to-mid-plex products. The Genetic Analysis and Clinical Applications business unit develops and markets the Company's genotyping and cytogenetics products. The Life Science Reagents business unit targets the life science reagent markets, developing and marketing reagents, enzymes, purification kits and biochemicals used by life science researchers. The Corporate business unit is comprised primarily of revenue from royalty arrangements, and field revenue from services provided to customers by the Company. The Company has concluded that its manufacturing operations are based on platforms that are used to produce various products that serve multiple applications and markets. Its manufacturing and the majority of its supporting operations have not been reorganized into business units but is centralized and Affymetrix Core business units are aggregated into one reportable operating segment, except for the Corporate business unit which was not deemed to be an operating segment.

The Company's other reportable operating segment, eBioscience, was acquired in the second quarter of 2012 and will be operated as a separate business unit in order to minimize or avoid any disruption of services, while taking advantage of immediate opportunities to create efficiencies. Refer to Note 3. "Acquisition" for further information. eBioscience specializes in the development, manufacturing, marketing and distribution of research tools in the areas of flow cytometry, immunoassays, microscopic imaging and other protein-based analyses. The Acquisition allows the Company to expand addressable markets and continue to diversify the business beyond genomics discovery into cell and protein analysis.

The Company evaluates the performance of its reportable operating segments based on revenue and income (loss) from operations. Revenue are allocated to each business unit based on product codes. Excluding eBioscience whose business is primarily operated on a stand-alone basis except for certain cross-functional areas, operating expenses are allocated to Affymetrix Core in the following manner: Research and development costs are allocated to the business units based on respective products in which the research and development costs are incurred, with the remaining costs allocated to the Corporate business unit. Sales and marketing costs are allocated based on surveys with company personnel on the business unit in which employees incur their time. General and administrative costs are primarily allocated to the Corporate business unit.

The following table shows revenue and income (loss) from operations by reportable operating segment for the years ended December 31, 2012 and 2011 (in thousands):

	Year Ended December 31,
	2012			2011
Revenue (a):
Affymetrix Core	$	235,105		$	242,307
eBioscience		37,011			-
Totals	$	272,116		$	242,307
Income (loss) from operations (a):
Affymetrix Core	$	35,230		$	55,659
eBioscience		(8,792	)		-
Totals	$	26,438		$	55,659

The following table reconciles total operating segment revenue and loss from operations to the accompanying Consolidated Statements of Operations

	Year Ended December 31,
	2012			2011
Total revenue from reportable operating segments	$	272,116		$	242,307
Other revenue (a)		23,507			25,167
Total revenue	$	295,623		$	267,474
Total income from operations from reportable operating segments	$	26,438		$	55,659
Other corporate expenses, net (b)		(65,529	)		(72,300	)
Total loss from operations	$	(39,091	)	$	(16,641	)

(a) Other revenue include field service revenue and royalty revenue

(b) Other corporate expenses, net include cost of goods sold directly associated with other revenue, research and development, corporate marketing, facilities and other separately-managed general and administrative expenses.

The Company reported total revenue by region as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Customer location:
United States	$	171,176	$	142,508	$	178,029
Europe		71,526		76,286		80,914
Japan		21,039		19,989		22,248
Other		31,882		28,691		29,555
Total	$	295,623	$	267,474	$	310,746

There were no customers representing 10% or more of total revenue in 2012, 2011 and 2010.

The Company's long-lived assets other than purchased intangible assets, which the Company does not allocate to specific geographic locations as it is impracticable to do so, are composed principally of net property and equipment.

Net property and equipment, classified by major geographic areas in which the Company operates was as follows (in thousands):

	Year Ended December 31,
	2012		2011
Net property and equipment:
United States (1)	$	22,204	$	32,168
Singapore		4,260		6,022
Europe		1,770		1,059
Other countries		430		335
Total	$	28,663	$	39,583

(1) Included in the balance as of December 31, 2011 was the Company's West Sacramento facility that was reclassified to held-for-sale on the accompanying Consolidated Balance Sheets at an estimated fair value of $9.0 million at December 31, 2011.