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. |