14. Segment Information

The Company operates in two reportable segments: Brooks Semiconductor Solutions Group and Brooks Life Sciences. Brooks Life Sciences consists of two operating segments aggregated into one reportable segment.

The Brooks Semiconductor Solutions Group segment provides a variety of products, services and solutions that enable improved throughput and yield in controlled operating environments, as well as an extensive range of support services. The solutions include atmospheric and vacuum robots, robotic modules, tool automation systems, contamination control of wafer carrier front opening unified pods and reticle management. The support services include repair services, diagnostic support services, and installation services in support of the products, which enable the customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare parts and productivity enhancement upgrades to maximize tool productivity.

The Brooks Life Sciences segment provides comprehensive life cycle sample management solutions to life science and bioscience customers including complete end-to-end “cold chain of custody” solutions and a variety of sample-based lab services such as genomic sequencing and synthesis to advance scientific research and support drug development. The segment’s product offerings include automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables, and informatics that help customers manage samples throughout their research discovery and development work flows. The segment’s service offerings include sample storage, genomic sequencing, genomic synthesis, lab processing services, lab analysis, and other support services provided to a wide range of life science customers, including pharmaceutical companies, biotechnology companies, biobanks and research institutes.

Revenue and adjusted operating income (loss) are two key metrics used by the CODM when assessing operating results and management performance as resources are allocated to each of the operating segments. The adjusted operating income (loss) for each segment includes selling, general and administrative expenses directly attributable to the segment, and corporate allocations for general and administrative support. Amortization of acquired intangible assets (excluding completed technology), restructuring and other charges, pension settlement, in-process research and development, and other unallocated corporate expenses are excluded from the segments’ adjusted operating income (loss). Please refer to Note 20, "Segment and Geographic Information" to the Company’s consolidated financial statements included in the 2018 Annual Report on Form 10‑K for further information on the operating segments’ description and accounting policies.

In conjunction with the acquisition of GENEWIZ during the quarter ended December 31, 2018, the Company reassessed Brooks segment reporting structure and determined that GENEWIZ represents a separate operating segment based on ASC 280. As permitted by ASC 280 Segment Reporting, the Company assessed and elected to aggregate the Sample Management operating segment with the GENEWIZ operating segment as a single reportable segment titled Brooks Life Sciences. We have aggregated the two operating segments as one reporting segment based on similarities in long-term forecasted economic characteristics, particularly adjusted operating income, similarity in services they offer, the customers they serve, the nature of their service delivery models, and their regulatory environments. The Company believes that the aggregated presentation is more useful to investors and other financial users. Management formally assesses the long-term financial outlook of its operating segments on an annual basis as part of its strategic planning process and more frequently on an informal basis. The customer bases of the operating segments overlap, serving life science and bioscience customers in the pharmaceutical, bio-technology, academic and government institutions. Both operating segments, provide services relating to the biological samples needed to advance non-clinical and clinical research, serving scientific and business operations functions. In a typical customer workflow, a biological sample is collected, processed and analyzed with results interpreted and used to make scientific judgements. Critical or valuable samples are then annotated and stored for many years in environments where they can be easily retrieved for additional study. The operating segments provide services across this workflow. Both operating segments services meeting standards of Good Manufacturing Practices (GMP) set forth by the U.S. Food and Drug Administration (FDA).

The following is the summary of the financial information for the Company’s operating and reportable segments for the three months ended December 31, 2018 and 2017 and balances as of December 31, 2018 and September 30, 2018 (in thousands):


	Brooks
	Semiconductor		Brooks
	Solutions Group		Life Sciences		Total

Three Months Ended December 31, 2018:
Revenue
Products	$	101,801	$	39,931	$	141,732
Services		10,906		26,730		37,636
Segment revenue	$	112,707	$	66,661	$	179,368
Gross profit	$	45,915	$	26,166	$	72,081
Segment operating income		16,141		1,590		17,731
Depreciation expense		916		2,771		3,687

Three Months Ended December 31, 2017:
Revenue
Products	$	83,791	$	21,981	$	105,772
Services		11,366		25,461		36,827
Segment revenue	$	95,157	$	47,442	$	142,599
Gross profit	$	38,494	$	15,765	$	54,259
Segment operating income (loss)		11,718		(1,396)		10,322
Depreciation expense		996		1,549		2,545


Assets:
December 31, 2018	$	288,891	$	915,944	$	1,204,835
September 30, 2018		264,452		410,581		675,033

The following is a reconciliation of the Company’s operating and reportable segments’ operating income and segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Statements of Operations for the three months ended December 31, 2018 and 2017 and Consolidated Balance Sheets as of December 31, 2018 and September 30, 2018 (in thousands):


	Three Months Ended
	December 31,
	2018		2017
Segment operating income	$	17,731	$	10,322
Amortization of acquired intangible assets		5,768		4,588
Restructuring charges		59		—
Other unallocated corporate expenses		6,571		809
Total operating income	$	5,333	$	4,925


	December 31,		September 30,
	2018		2018
Segment assets	$	1,204,835	$	675,033
Cash, cash equivalents and marketable securities		138,308		251,226
Deferred tax assets		23,287		43,798
Assets held for sale		130,301		125,200
Total assets	$	1,496,731	$	1,095,257