Segment Information

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

15. Segment 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 carrier 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 enhancement upgrades to maximize tool productivity.

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 automated cold storage systems, cryogenic storage systems, consumables and instruments and the associated services business for these products.

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 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 three and six months ended March 31, 2021 and 2020 (in thousands):

	Three Months Ended March 31,					Six Months Ended March 31,
	2021		2020		2021		2020
Revenue:
Brooks Semiconductor Solutions Group	$	157,051	$	124,923	$	288,409	$	243,734
Brooks Life Sciences Products		52,355		30,993		97,866		60,717
Brooks Life Sciences Services		77,180		64,311		149,814		126,276
Total revenue	$	286,586	$	220,227	$	536,089	$	430,727
Operating income:
Brooks Semiconductor Solutions Group	$	33,302	$	16,707	$	54,840	$	31,707
Brooks Life Sciences Products		11,215		2,144		19,157		2,506
Brooks Life Sciences Services		13,406		5,973		27,717		11,585
Reportable segment adjusted operating income		57,923		24,824		101,714		45,798
Amortization of completed technology		2,319		2,740		4,708		5,416
Amortization of other intangible assets		7,601		7,615		14,957		15,525
Restructuring charges		92		578		179		1,154
Tariff adjustment		5,497		—		5,497		—
Other unallocated corporate expenses (income)		11,909		(681)		14,939		(1,535)
Total operating income		30,505		14,572		61,434		25,238
Interest income		18		137		94		836
Interest expense		(452)		(718)		(1,008)		(1,455)
Other income (expenses), net		149		(1,399)		1,478		(1,816)
Income before income taxes	$	30,220	$	12,592	$	61,998	$	22,803
		Brooks
		Semiconductor		Brooks Life		Brooks Life
Assets:		Solutions Group		Sciences Products		Sciences Services		Total
March 31, 2021	$	322,423	$	230,732	$	766,741	$	1,319,896
September 30, 2020		296,289		214,196		737,967		1,248,452

The following is a reconciliation of the Company’s reportable segments’ segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets as of March 31, 2021 and September 30, 2020 (in thousands):

	March 31,		September 30,
	2021		2020
Segment assets	$	1,319,896	$	1,248,452
Cash and cash equivalents, restricted cash, and marketable securities		334,336		305,694
Deferred tax assets		9,864		4,979
Total assets	$	1,664,096	$	1,559,125