Segment Information

9 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

8. Segment Information

     We report financial results in three segments: Brooks Product Solutions, Brooks Global Services and Contract Manufacturing. This financial reporting structure was implemented effective as of the beginning of our third quarter of fiscal year 2011 in response to changes in our management structure and in anticipation of the sale of our Contract Manufacturing segment. Historic results included in this quarterly report have been reclassified where applicable to conform to this new operating segment structure.

     The Brooks Product Solutions segment provides a variety of products critical to technology equipment productivity and availability. Those products include atmospheric and vacuum tool automation systems, atmospheric and vacuum robots and robotic modules and cryogenic vacuum pumping, thermal management and vacuum measurement solutions used to create, measure and control critical process vacuum applications.

     The Brooks Global Services segment provides an extensive range of support services including on and off-site repair services, on and off-site diagnostic support services, and installation services to enable our customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare part support services to maximize customer tool productivity.

     The Contract Manufacturing segment provides services to build equipment front-end modules and other subassemblies which enable our customers to effectively develop and source high quality and high reliability process tools for semiconductor and adjacent market applications. We sold this segment in the Asset Sale which closed on June 28, 2011.

     The Company evaluates performance and allocates resources based on 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. Intersegment revenues between Brooks Product Solutions and Contract Manufacturing are eliminated from Contract Manufacturing revenues. The profits reported on intercompany transactions are based on the transfer prices charged which approximates fair value to third parties. Other unallocated corporate expenses (primarily certain legal costs associated with the Company’s past equity incentive-related practices and costs to indemnify a former executive in connection with these matters), amortization of acquired intangible assets (excluding completed technology) and restructuring are excluded from the segments’ operating income (loss). The Company’s non-allocable overhead costs, which include various general and administrative expenses, are allocated among the segments based upon various cost drivers associated with the respective administrative function, including segment revenues, segment headcount, or an analysis of the segments that benefit from a specific administrative function. Segment assets exclude investments in joint ventures, marketable securities and cash equivalents.

     Financial information for the Company’s business segments is as follows (in thousands):

	Brooks		Brooks
	Product		Global		Contract
	Solutions		Services		Manufacturing		Total
Three months ended June 30, 2011
Revenues
Product	$	120,769	$	3,573	$	42,316	$	166,658
Services		482		18,996		—		19,478
	$	121,251	$	22,569	$	42,316	$	186,136
Gross profit	$	45,083	$	7,903	$	3,984	$	56,970
Segment operating income	$	17,541	$	3,522	$	2,006	$	23,069
Three months ended June 30, 2010
Revenues
Product	$	97,059	$	3,019	$	41,603	$	141,681
Services		—		15,109		—		15,109
	$	97,059	$	18,128	$	41,603	$	156,790
Gross profit	$	36,331	$	5,024	$	4,550	$	45,905
Segment operating income	$	14,198	$	1,057	$	2,273	$	17,528
Nine months ended June 30, 2011
Revenues
Product	$	354,434	$	11,020	$	137,329	$	502,783
Services		482		53,889		—		54,371
	$	354,916	$	64,909	$	137,329	$	557,154
Gross profit	$	135,663	$	23,090	$	17,210	$	175,963
Segment operating income	$	55,688	$	9,094	$	10,650	$	75,432
Nine months ended June 30, 2010
Revenues
Product	$	248,528	$	10,433	$	107,506	$	366,467
Services		—		44,873		—		44,873
	$	248,528	$	55,306	$	107,506	$	411,340
Gross profit	$	85,480	$	14,540	$	11,081	$	111,101
Segment operating income	$	21,884	$	2,775	$	4,462	$	29,121
Assets
June 30, 2011	$	250,789	$	52,199	$	—	$	302,988
September 30, 2010	$	227,409	$	53,564	$	57,023	$	337,996

     Revenues for the Brooks Product Solutions segment for the three and nine months ended June 30, 2011 include intercompany sales of $16.2 million and $49.2 million, respectively, of intercompany sales from this segment to the Contract Manufacturing segment. Revenues for the Brooks Product Solutions segment for the three and nine months ended June 30, 2010 include $17.4 million and $43.4 million, respectively, of intercompany sales from this segment to the Contract Manufacturing segment. These intercompany revenues have been eliminated from the revenues of Contract Manufacturing.

     Revenues for the Contract Manufacturing segment for the three months ended June 30, 2011 exclude intercompany sales of $2.9 million and $10.7 million, respectively, of intercompany sales from this segment to the Brooks Product Solutions segment. Revenues for the Contract Manufacturing segment for the three and nine months ended June 30, 2011 exclude intercompany sales of $3.0 million and $9.6 million, respectively, of intercompany sales from this segment to the Brooks Product Solutions segment.

     A reconciliation of the Company’s reportable segment operating income to the corresponding consolidated amounts for the three and nine month periods ended June 30, 2011 and 2010 is as follows (in thousands):

	Three months ended				Nine months ended
	June 30,				June 30,
	2011		2010		2011		2010
Segment operating income	$	23,069	$	17,528	$	75,432	$	29,121
Other unallocated corporate expenses		305		232		839		684
Amortization of acquired intangible assets		495		492		1,394		1,476
Restructuring charges		97		288		557		2,294
Total operating income	$	22,172	$	16,516	$	72,642	$	24,667

     A reconciliation of the Company’s reportable segment assets to the corresponding consolidated amounts as of June 30, 2011 and September 30, 2010 is as follows (in thousands):

	June 30,		September 30,
	2011		2010
Segment assets	$	302,988	$	337,996
Investments in cash equivalents, marketable securities, joint ventures, and other unallocated corporate net assets		323,371		180,228
Total assets	$	626,359	$	518,224