Segment and Geographic Information

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

20.    Segment and Geographic Information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s chief operating decision maker.

The Company operates in three reportable segments: the Brooks Semiconductor Solutions Group segment, the Brooks Life Sciences Services segment and the Brooks Life Sciences Products segment. These reportable segments also represent the Company’s operating segments. The Company previously operated in two reportable segments: the Brooks Semiconductor Solutions Group segment and the Brooks Life Sciences segment. The Brooks Life Sciences segment consisted of the Sample Management operating segment and the GENEWIZ operating segment that aggregated into one reportable segment. During fiscal year 2020, the Company reorganized its operating segments to better align

with its business activities in connection with its recent acquisitions and the Company’s strategic vision. Historical information has been adjusted to reflect the new reportable segments.

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 storage. The support services include repair services, diagnostic support services, and installation services in support of the products, which enable 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 Services segment provides comprehensive sample management programs, integrated cold chain solutions, informatics, as well as sample-based laboratory services to advance scientific research and support drug development. The segment’s service offerings include sample storage, genomic sequencing, gene synthesis, laboratory processing services, laboratory analysis, and other support services which are provided to a wide range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories and research institutes.

The Brooks Life Sciences Products segment provides automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables and instruments, that help customers manage samples throughout their research discovery and development workflows. The segment’s product offerings include the automated cold storage systems, cryogenic storage systems, consumables and instruments and the associated services business for these products

The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the acquisition accounting impact on inventory contracts acquired and restructuring related charges as the primary performance metric when evaluating the business.

The following is the summary of the financial information for the Company’s reportable segments for the fiscal years ended September 30, 2020, 2019 and 2018 (in thousands):

				Year Ended September 30, 2020
				2020		2019		2018
Revenue:
Brooks Semiconductor Solutions Group			$	508,736	$	446,669	$	435,018
Brooks Life Sciences Products				129,759		119,020		106,146
Brooks Life Sciences Services				258,778		215,159		90,396
Total revenue			$	897,273	$	780,848	$	631,560
Operating income:
Brooks Semiconductor Solutions Group			$	82,950	$	69,961	$	62,511
Brooks Life Sciences Products				9,353		(1,835)		(9,044)
Brooks Life Sciences Services				28,832		22,466		12,839
Reportable segment adjusted operating income				121,135		90,592		66,306
Amortization of completed technology				11,007		10,424		4,877
Acquisition accounting impact on inventory contracts acquired				—		184		1,896
Restructuring related charges				301		285		—
Amortization of acquired intangible assets				30,766		24,737		19,339
Restructuring charges				1,366		1,894		714
Other unallocated corporate expenses				(763)		7,030		8,071
Total operating income				78,458		46,038		31,409
Interest income				849		1,449		1,881
Interest expense				(2,944)		(22,250)		(9,520)
Loss on extinguishment of debt				—		(14,339)		—
Other expenses, net				(1,391)		(1,455)		(3,304)
Income before income taxes			$	74,972	$	9,443	$	20,466
		Brooks
		Semiconductor		Brooks Life		Brooks Life
Assets:		Solutions Group		Sciences Products		Sciences Services		Total
September 30, 2020	$	296,289	$	214,196	$	737,967	$	1,248,452
September 30, 2019		259,641		206,456		702,698		1,168,795

The following is a reconciliation of the Company’s reportable segments’ segment assets to the amounts presented in the accompanying Consolidated Balance Sheets as of September 30, 2020 and 2019 (in thousands):

	September 30,		September 30,
	2020		2019
Segment assets	$	1,248,452	$	1,168,795
Cash and cash equivalents, restricted cash, and marketable securities		305,694		342,140
Deferred tax assets		4,979		5,064
Total assets	$	1,559,125	$	1,515,999

Revenue from external customers is attributed to geographic areas based on locations in which customer orders are placed. Net revenue by geographic area for the fiscal years ended September 30, 2020, 2019 and 2018 are as follows (in thousands):

	Year Ended September 30,
	2020		2019		2018
North America	$	340,403	$	327,250	$	233,243
Asia / Pacific/ Other		417,099		312,237		262,706
Europe		139,771		141,361		135,611
	$	897,273	$	780,848	$	631,560

The majority of the Company’s net revenue in North America is generated in the United States which amounted to $337.3 million, $325.3 million and $232.7 million, respectively, during fiscal years ended September 30, 2020, 2019 and 2018.

The geographic location of an OEM is not indicative of where the products will eventually be used. The geographic area for the orders is determined by the onward sale of an OEM system which incorporates the sub-systems and/or components.

Property, plant and equipment by geographic area as of September 30, 2020 and 2019 are as follows (in thousands):

	September 30,
	2020		2019
North America	$	79,366	$	72,401
Asia / Pacific/ Other		25,117		15,628
Europe		13,182		12,640
	$	117,665	$	100,669

Property, plant and equipment located in the United States amounted to $79.4 million and $72.3 million, respectively, at September 30, 2020 and 2019.