13. Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Information

13. SEGMENT INFORMATION

Bio-Rad is a multinational manufacturer and worldwide distributor of its own life science research products and clinical diagnostics products.  We have two reportable segments:  Life Science and Clinical Diagnostics.  These reportable segments are strategic business lines that offer different products and services and require different marketing strategies.

The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research.  These products are sold to university and medical school laboratories, pharmaceutical and biotechnology companies, food testing laboratories and government and industrial research facilities.

The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market.  These products are sold to reference laboratories, hospital laboratories, state newborn screening facilities, physicians’ office laboratories, transfusion laboratories and insurance and forensic testing laboratories.

Other Operations include the remainder of our former Analytical Instruments segment.

The accounting policies of the segments are the same as those described in Significant Accounting Policies (see Note 1).  Segment profit or loss used for corporate management purposes includes an allocation of corporate expense based upon sales and an allocation of interest expense based upon accounts receivable and inventories.  Segments are expected to manage only assets completely under their control.  Accordingly, segment assets include primarily accounts receivable, inventories and gross machinery and equipment.  Goodwill balances have been included in corporate for segment reporting purposes.

Information regarding industry segments at December 31, 2011, 2010, and 2009 and for the years then ended is as follows (in millions):

		Life Science			Clinical Diagnostics		Other Operations
Segment net sales	2011	$	694.7		$	1,363.8	$	15.0
	2010	648.1			1,265.3		13.7
	2009	631.5			1,139.9		12.8
Allocated interest expense	2011	$	14.0		$	38.9	$	0.2
	2010	17.1			46.4		0.2
	2009	13.9			32.8		0.3
Depreciation and amortization	2011	$	17.3		$	93.2	$	0.2
	2010	15.0			84.9		0.2
	2009	16.5			78.2		0.3
Segment profit	2011	$	45.7		$	197.9	$	1.2
	2010	51.1			171.4		1.4
	2009	38.6		(1)	145.7		0.9
Segment assets	2011	$	357.4		$	854.8	$	5.7
	2010	332.0			807.0		6.1
Capital expenditures	2011	$	15.4		$	71.6	$	—
	2010	10.6			62.3		0.1

(1)The Life Science segment profit for 2009 included $3.8 million of intangibles impairment expense (see Note 4).

The difference between total segment allocated interest expense, depreciation and amortization, and capital expenditures and the corresponding consolidated amounts is attributable to our corporate headquarters.  The following reconciles total segment profit to consolidated income before taxes (in millions):

	Year Ended December 31,
	2011			2010			2009
Total segment profit	$	244.8		$	223.9		$	185.2
Foreign exchange losses	(13.8		)	(3.9		)	(5.0		)
Net corporate operating, interest and other expense, net not allocated to segments	(2.8		)	(3.6		)	(1.3		)
Other income (expense), net	7.6			3.9			6.9
Consolidated income before taxes	$	235.8		$	220.3		$	185.8

The following reconciles total segment assets to consolidated total assets (in millions):

	December 31,
	2011			2010
Total segment assets	$	1,217.9		$	1,145.1
Cash and other current assets	968.2			1,197.2
Property, plant and equipment, net, excluding
segment specific gross machinery and equipment	(27.3		)	(20.3		)
Goodwill, net	468.9			364.0
Other long-term assets	469.1			376.8
Total assets	$	3,096.8		$	3,062.8

The following presents net sales to external customers by geographic area based primarily on the location of the use of the product or service (in millions):

	Year Ended December 31,
	2011		2010		2009
Europe	$	896.4	$	842.6	$	814.4
Pacific Rim	398.4		347.8		291.5
United States	631.0		600.5		565.8
Other (primarily Canada and Latin America)	147.7		136.2		112.5
Total net sales	$	2,073.5	$	1,927.1	$	1,784.2

The following presents Other assets and Property, plant and equipment, net by geographic area based upon the location of the asset (in millions):

	December 31,
	2011		2010
Europe	$	180.9	$	181.8
Pacific Rim	26.0		23.1
United States	338.7		287.8
Other (primarily Canada and Latin America)	13.4		13.9
Total Other assets and Property, plant and equipment, net	$	559.0	$	506.6