Segment Information

9 Months Ended

Jun. 30, 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 Products segment and the Brooks Life Sciences Services 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 nine months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,					Nine Months Ended June 30,
	2021		2020		2021		2020
Revenue:
Brooks Semiconductor Solutions Group	$	186,262	$	127,052	$	474,674	$	370,786
Brooks Life Sciences Products		48,625		30,421		146,490		91,138
Brooks Life Sciences Services		80,462		62,877		230,275		189,153
Total revenue	$	315,349	$	220,350	$	851,439	$	651,077
Operating income:
Brooks Semiconductor Solutions Group	$	44,797	$	23,414	$	99,637	$	55,120
Brooks Life Sciences Products		9,138		2,482		28,295		4,988
Brooks Life Sciences Services		13,783		4,109		41,501		15,695
Reportable segment adjusted operating income		67,718		30,005		169,433		75,803
Amortization of completed technology		3,352		2,779		8,060		8,194
Amortization of other intangible assets		7,733		7,611		22,690		23,137
Restructuring charges		—		(29)		179		1,125
Tariff adjustment		—		—		5,414		—
Other unallocated corporate expenses (income)		6,400		545		21,423		(990)
Total operating income		50,233		19,099		111,667		44,337
Interest income		409		29		503		865
Interest expense		(477)		(810)		(1,485)		(2,265)
Other income (expenses), net		(1,625)		498		(147)		(1,318)
Income before income taxes	$	48,540	$	18,816	$	110,538	$	41,619
		Brooks
		Semiconductor		Brooks Life		Brooks Life
Assets:		Solutions Group		Sciences Products		Sciences Services		Total
June 30, 2021	$	433,108	$	259,592	$	779,798	$	1,472,498
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 June 30, 2021 and September 30, 2020 (in thousands):

	June 30,		September 30,
	2021		2020
Segment assets	$	1,472,498	$	1,248,452
Cash and cash equivalents, restricted cash, and marketable securities		286,310		305,694
Deferred tax assets		4,447		4,979
Total assets	$	1,763,255	$	1,559,125

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 three and nine months ended June 30, 2021 and 2020 (in thousands) are as follows:

		Three Months Ended June 30,				Nine Months Ended June 30,
	2021		2020		2021		2020
Geographic Location:
Asia / Pacific/ Other
China	$	55,062	$	30,228	$	137,945	$	76,435
Taiwan		29,844		15,266		73,350		91,993
Republic of Korea		28,994		22,369		77,982		46,296
Other		37,186		31,552		105,861		93,245
		151,086		99,415		395,138		307,969
North America
USA		108,344		79,032		290,883		243,883
Other		2,110		850		22,947		2,117
		110,454		79,882		313,830		246,000
Europe		53,809		41,053		142,471		97,108
Total	$	315,349	$	220,350	$	851,439	$	651,077

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.