Industry Segment and Geographic Area Information

12 Months Ended

Dec. 28, 2014

Segment Reporting [Abstract]

Industry Segment Information

Industry Segment and Geographic Area Information

The Company discloses information about its operating segments based on the way that management organizes the segments within the Company for making operating decisions and assessing financial performance. The Company evaluates the performance of its operating segments based on revenue and operating income. Intersegment revenue and transfers are not significant. The Company’s management reviews the results of the Company’s operations by the Human Health and Environmental Health operating segments. The accounting policies of the operating segments are the same as those described in Note 1. The principal products and services of these two operating segments are:

• Human Health.    Develops diagnostics, tools and applications to help detect diseases earlier and more accurately and to accelerate the discovery and development of critical new therapies. The Human Health segment serves both the diagnostics and research markets.

• Environmental Health.    Provides products, services and solutions to facilitate the creation of safer food and consumer products, more secure surroundings and efficient energy resources. The Environmental Health segment serves the environmental, industrial and laboratory services markets.

The Company has included the expenses for its corporate headquarters, such as legal, tax, audit, human resources, information technology, and other management and compliance costs, as well as the activity related to the mark-to-market adjustment on postretirement benefit plans, as “Corporate” below. The Company has a process to allocate and recharge expenses to the reportable segments when these costs are administered or paid by the corporate headquarters based on the extent to which the segment benefited from the expenses. These amounts have been calculated in a consistent manner and are included in the Company’s calculations of segment results to internally plan and assess the performance of each segment for all purposes, including determining the compensation of the business leaders for each of the Company’s operating segments.

Revenue and operating income (loss) from continuing operations by operating segment are shown in the table below for the fiscal years ended:

	December 28, 2014			December 29, 2013			December 30, 2012
	(In thousands)
Human Health
Product revenue	$	996,767		$	957,022		$	926,733
Service revenue	246,635			244,088			237,892
Total revenue	1,243,402			1,201,110			1,164,625
Operating income from continuing operations(1)	220,165			156,452			63,773
Environmental Health
Product revenue	543,308			541,048			547,941
Service revenue	450,509			415,428			392,622
Total revenue	993,817			956,476			940,563
Operating income from continuing operations(1)	109,129			97,052			111,844
Corporate
Operating loss from continuing operations(2)(3)	(118,552		)	(25,710		)	(72,497		)
Continuing Operations
Product revenue	$	1,540,075		$	1,498,070		$	1,474,674
Service revenue	697,144			659,516			630,514
Total revenue	2,237,219			2,157,586			2,105,188
Operating income from continuing operations	210,742			227,794			103,120
Interest and other expense, net (see Note 5)	41,139			64,110			47,956
Income from continuing operations before income taxes	$	169,603		$	163,684		$	55,164

____________________________

⁽¹⁾  Pre-tax impairment charges have been included in the Human Health and Environmental Health operating income from continuing operations. The Company had no pre-tax impairment charges in fiscal year 2014. The Company recognized a $0.2 million pre-tax impairment charge in the Human Health segment in fiscal year 2013. The Company recognized $73.4 million of pre-tax impairment charges in the Human Health segment and also recognized $0.7 million of pre-tax impairment charges in the Environmental Health segment in fiscal year 2012.

⁽²⁾  Activity related to the mark-to-market adjustment on postretirement benefit plans has been included in the Corporate operating loss from continuing operations, and in the aggregate constituted a pre-tax loss of $75.9 million in fiscal year 2014, pre-tax income of $17.6 million in fiscal year 2013, and a pre-tax loss of $31.8 million in fiscal year 2012.

⁽³⁾  Includes expenses related to litigation with Enzo Biochem, Inc. and Enzo Life Sciences, Inc. (collectively, “Enzo”). Enzo filed a complaint in 2002 alleging that the Company separately and together with other defendants breached distributorship and settlement agreements with Enzo, infringed Enzo's patents, engaged in unfair competition and fraud, and committed torts against Enzo by, among other things, engaging in commercial development and exploitation of Enzo's patented products and technology. The Company entered into a settlement agreement with Enzo dated June 20, 2014 and during fiscal year 2014 paid $7.0 million into a designated escrow account to resolve this matter, of which $3.7 million had been accrued in previous years and $3.3 million was recorded during fiscal year 2014. In addition, $3.4 million of expenses were incurred and recorded in preparation for the trial during fiscal year 2014.

Additional information relating to the Company’s reporting segments is as follows for the three fiscal years ended December 28, 2014:

	Depreciation and Amortization Expense						Capital Expenditures
	December 28, 2014		December 29, 2013		December 30, 2012		December 28, 2014		December 29, 2013		December 30, 2012
	(In thousands)						(In thousands)
Human Health	$	89,969	$	98,582	$	99,597	$	15,201	$	20,900	$	24,518
Environmental Health	24,736		25,915		23,001		12,149		16,532		14,488
Corporate	2,031		2,382		2,528		1,722		1,549		3,395
Continuing operations	116,736		126,879		125,126		29,072		38,981		42,401
Discontinued operations	$	339	$	1,590	$	1,741	$	213	$	10	$	7

	Total Assets
	December 28, 2014		December 29, 2013		December 30, 2012
	(In thousands)
Human Health	$	2,645,411	$	2,692,809	$	2,700,565
Environmental Health	1,453,683		1,213,801		1,153,444
Corporate	34,981		34,271		33,952
Net current and long-term assets of discontinued operations	—		5,831		13,801
Total assets	$	4,134,075	$	3,946,712	$	3,901,762

The following geographic area information for continuing operations includes revenue based on location of external customer for the three fiscal years ended December 28, 2014 and net long-lived assets based on physical location as of December 28, 2014 and December 29, 2013:

	Revenue
	December 28, 2014		December 29, 2013		December 30, 2012
	(In thousands)
U.S.	$	849,356	$	826,991	$	812,934
International:
China	276,230		254,838		216,425
United Kingdom	134,614		133,611		118,611
Germany	107,081		99,153		105,735
Japan	93,811		95,676		114,300
Italy	85,433		78,120		69,599
France	84,946		81,719		84,395
Other international	605,748		587,478		583,189
Total international	1,387,863		1,330,595		1,292,254
Total sales	$	2,237,219	$	2,157,586	$	2,105,188

	Net Long-Lived Assets
	December 28, 2014		December 29, 2013		December 30, 2012
	(In thousands)
U.S.	$	198,675	$	214,721	$	200,539
International:
China	36,797		30,682		30,134
United Kingdom	13,033		9,882		2,960
Finland	12,758		13,635		11,851
Singapore	7,041		6,812		6,366
Italy	4,107		2,735		3,303
Netherlands	3,614		4,037		3,900
Germany	2,493		2,591		2,353
Brazil	2,099		1,967		1,515
Mexico	1,938		1,016		1,353
Other international	8,627		8,062		8,889
Total international	92,507		81,419		72,624
Total net long-lived assets	$	291,182	$	296,140	$	273,163