Segment Information

3 Months Ended

Dec. 31, 2011

Segment Information

8. Segment Information

The Company reports financial results in four segments: Brooks Product Solutions, Brooks Global Services, Brooks Life Science Systems and Contract Manufacturing. A description of segments is included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 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 were 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 Product Solutions		Brooks Global Services		Brooks Life  Science Systems			Contract Manufacturing		Total
Three months ended December 31, 2011
Revenues
Product	$	85,294	$	2,377	$	9,427		$	—	$	97,098
Services		—		19,717		3,413			—		23,130
	$	85,294	$	22,094	$	12,840		$	—	$	120,228
Gross profit	$	28,401	$	7,136	$	4,820		$	—	$	40,357
Segment operating income (loss)	$	1,085	$	2,949	$	(633	)	$	—	$	3,401
Three months ended December 31, 2010
Revenues
Product	$	112,001	$	3,298	$	—		$	45,890	$	161,189
Services		—		17,178		—			—		17,178
	$	112,001	$	20,476	$	—		$	45,890	$	178,367
Gross profit	$	43,090	$	7,267	$	—		$	6,962	$	57,319
Segment operating income	$	17,471	$	2,510	$	—		$	4,643	$	24,624
Assets
December 31, 2011	$	217,841	$	55,987	$	111,523		$	—	$	385,351
September 30, 2011	$	235,322	$	52,354	$	101,331		$	—	$	389,007

Revenues for the Brooks Product Solutions segment for the three months ended December 31, 2010 include intercompany sales of $16.5 million 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 December 31, 2010 exclude intercompany sales of $3.8 million 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 month periods ended December 31, 2011 and 2010 is as follows (in thousands):

	Three months ended December 31,
	2011		2010
Segment operating income	$	3,401	$	24,624
Other unallocated corporate expenses		518		231
Amortization of acquired intangible assets		1,217		450
Restructuring charges		203		214
Total operating income	$	1,463	$	23,729

A reconciliation of the Company’s reportable segment assets to the corresponding consolidated amounts as of December 31, 2011 and September 30, 2011 is as follows (in thousands):

	December 31, 2011		September 30, 2011
Segment assets	$	385,351	$	389,007
Investments in cash equivalents, marketable securities, joint ventures, and other unallocated corporate net assets		236,453		247,613
Total assets	$	621,804	$	636,620