Segment and Geographic Information

12 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company reports financial results in three segments: Brooks Product Solutions, Brooks Global Services and Brooks Life Science Systems.

The Brooks Product Solutions segment provides a variety of products and solutions that enable improved throughput and yield in controlled operating environments. Those products include atmospheric and vacuum robots, robotic modules, and tool automation systems that provide precision handling and clean wafer environments as well as vacuum pumping and thermal management solutions used to create and control critical process vacuum applications.

The Brooks Global Services segment provides an extensive range of support services, including repair services, diagnostic support services, and installation services in support of the base equipment installed by the Company's Brooks Product Solutions segment, which enable its customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare parts to maximize customer tool productivity.

The Brooks Life Science Systems segment provides automated cold sample management systems for compound and bio sample storage, equipment for sample preparation and handling, consumables, and parts and support services to a wide range of life science customers including pharmaceutical companies, biotechnology companies, biobanks, national laboratories, research institutes and research universities.

The Company evaluates the performance of, and allocates resources to, each of its segments based on their revenues, operating income (loss) and returns on invested assets. Operating income (loss) for each segment includes selling, general and administrative expenses directly attributable to the segment. Other unallocated corporate expenses, amortization of acquired intangible assets (excluding completed technology) and restructuring and other charges, pension settlement and in-process research and development are excluded from the segments’ operating income (loss). The Company’s indirect overhead costs, which include various general and administrative expenses, are allocated among the segments based upon multiple cost drivers associated with the respective administrative function, including segment revenue, segment headcount, or an analysis of the segments that benefit from a specific administrative function. Segment assets exclude cash, cash equivalents, restricted cash, marketable securities, deferred tax assets, assets held for sale and equity method investments.

Financial information for the Company’s business segments, excluding amounts related to the discontinued operations, for the fiscal years ended September 30, 2014, 2013 and 2012 are as follows (in thousands):

	Brooks Product Solutions		Brooks Global Services		Brooks Life Science Systems			Total
Year ended September 30, 2014
Revenue
Product	$	325,639	$	14,978	$	46,415		$	387,032
Services	—		79,083		16,733			95,816
	$	325,639	$	94,061	$	63,148		$	482,848
Gross profit	$	111,746	$	32,168	$	23,423		$	167,337
Segment operating income (loss)	$	10,836	$	12,451	$	(8,431	)	$	14,856
Depreciation expense	$	8,316	$	2,361	$	2,022		$	12,699
Assets	$	252,944	$	58,678	$	103,498		$	415,120
Year ended September 30, 2013
Revenue
Product	$	290,523	$	13,152	$	31,336		$	335,011
Services	—		75,477		11,952			87,429
	$	290,523	$	88,629	$	43,288		$	422,440
Gross profit	$	91,255	$	26,912	$	14,140		$	132,307
Segment operating income (loss)	$	1,116	$	9,592	$	(12,380	)	$	(1,672	)
Depreciation expense	$	8,698	$	2,746	$	2,256		$	13,700
Assets	$	226,759	$	59,762	$	105,221		$	391,742
Year ended September 30, 2012
Revenue
Product	$	351,432	$	11,324	$	39,749		$	402,505
Services	—		73,616		12,862			86,478
	$	351,432	$	84,940	$	52,611		$	488,983
Gross profit	$	113,945	$	25,093	$	20,415		$	159,453
Segment operating income (loss)	$	13,330	$	8,898	$	(3,139	)	$	19,089
Depreciation expense	$	8,600	$	2,344	$	2,111		$	13,055

A reconciliation of the Company’s reportable segment operating income (loss) and segment assets to the corresponding consolidated amounts as of and for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows (in thousands):

	As of and for the Year Ended September 30,
	2014			2013			2012
Segment operating income (loss)	$	14,856		$	(1,672	)	$	19,089
Other unallocated corporate expenses (1)	5,096			3,002			(1,833		)
Amortization of acquired intangible assets	6,170			5,694			4,164
Impairment of acquired intangible assets	—			50			—
Restructuring and other charges	6,289			6,380			3,153
Pension settlement	—			—			8,937
In-process research and development	—			—			3,026
Total operating income (loss)	$	(2,699	)	$	(16,798	)	$	1,642

Segment assets	$	415,120	$	391,742
Cash, cash equivalents, restricted cash and marketable securities	245,456		173,539
Deferred tax assets	86,572		115,985
Assets held for sale	—		27,778
Equity method investments	28,944		25,687
Other unallocated corporate net assets	1,946		2,032
Total assets	$	778,038	$	736,763

 ______________

(1) Other unallocated corporate expenses for the fiscal year ended September 30, 2012 includes a credit of $3.3 million related to insurance proceeds received as reimbursement of litigation costs previously incurred.

Net revenue based upon the source of the order by geographic area for the fiscal years ended September 30, 2014, 2013 and 2012 are as follows (in thousands):

	Year Ended September 30,
	2014		2013		2012
North America	$	174,343	$	177,779	$	214,060
Asia/Pacific	198,695		154,358		183,406
Europe	109,810		90,303		91,517
	$	482,848	$	422,440	$	488,983

Property, plant and equipment by geographic area as of September 30, 2014 and 2013 are as follows (in thousands):

	September 30,
	2014		2013
North America	$	40,232	$	38,505
Asia/Pacific	870		1,646
Europe	9,081		7,355
	$	50,183	$	47,506