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 accounting policies of the operating segments are the same as those described in Note 1.

The principal products and services of the Company's two operating segments are:


•	Discovery & Analytical Solutions. Provides products and services targeted towards the environmental, industrial, food, life sciences research and laboratory services markets.


•	Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, emerging market diagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.

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. During the first quarter of fiscal year 2017, the Company changed the manner in which certain shared functional costs are allocated to the operating segments. Segment financial information relating to the fiscal years ended January 1, 2017 and January 3, 2016 have been retrospectively adjusted to reflect this change to the cost allocation methodology. Accordingly, for the fiscal years ended January 1, 2017 and January 3, 2016, operating income from continuing operations from the Discovery & Analytical Solutions segment decreased by $10.7 million and $10.9 million, respectively, with corresponding increases in operating income from continuing operations of the Diagnostics segment in both fiscal years.

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



	December 31, 2017			January 1, 2017			January 3, 2016
	(In thousands)
Discovery & Analytical Solutions
Product revenue	$	941,328		$	934,098		$	968,034
Service revenue	637,131			578,886			560,385
Total revenue	1,578,459			1,512,984			1,528,419
Operating income from continuing operations⁽¹⁾	206,688			196,819			162,762
Diagnostics
Product revenue	536,086			462,798			427,068
Service revenue	142,437			139,735			149,336
Total revenue	678,523			602,533			576,404
Operating income from continuing operations	149,636			149,577			146,478
Corporate
Operating loss from continuing operations⁽²⁾	(51,521		)	(63,330		)	(58,314		)
Continuing Operations
Product revenue	1,477,414			1,396,896			1,395,102
Service revenue	779,568			718,621			709,721
Total revenue	2,256,982			2,115,517			2,104,823
Operating income from continuing operations	304,803			283,066			250,926
Interest and other expense, net (see Note 5)	8,085			38,998			42,119
Income from continuing operations before income taxes	$	296,718		$	244,068		$	208,807

____________________________


⁽¹⁾	Legal costs for a particular case in the Discovery & Analytical Solutions segment were $2.7 million for fiscal year 2017.


⁽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 gain of $2.1 million in fiscal year 2017, a pre-tax loss of $15.3 million in fiscal year 2016, and pre-tax loss of $12.4 million in fiscal year 2015.

Additional information relating to the Company’s reporting segments is as follows for the three fiscal years ended December 31, 2017:



	Depreciation and Amortization Expense						Capital Expenditures
	December 31, 2017		January 1, 2017		January 3, 2016		December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands)						(In thousands)
Discovery & Analytical Solutions	$	72,590	$	72,484	$	74,177	$	26,200	$	21,486	$	18,175
Diagnostics	31,204		25,339		29,728		11,262		8,556		6,854
Corporate	1,206		2,149		1,459		1,627		1,660		3,189
Continuing operations	$	105,000	$	99,972	$	105,364	$	39,089	$	31,702	$	28,218
Discontinued operations	$	929	$	6,266	$	6,643	$	182	$	1,302	$	1,414



	Total Assets
	December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands)
Discovery & Analytical Solutions	$	2,744,370	$	2,612,757	$	2,546,583
Diagnostics	3,314,804		1,505,381		1,459,854
Corporate	32,289		31,171		28,497
Current and long-term assets of discontinued operations	—		127,374		131,361
Total assets	$	6,091,463	$	4,276,683	$	4,166,295

The following geographic area information for continuing operations includes revenue based on location of external customers for the three fiscal years ended December 31, 2017 and net long-lived assets based on physical location as of December 31, 2017 and January 1, 2017:



	Revenue
	December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands)
U.S.	$	837,018	$	842,364	$	854,336
International:
China	374,931		336,728		296,908
United Kingdom	65,164		65,904		69,081
Germany	91,669		89,839		86,632
India	84,812		43,891		40,239
Italy	77,477		70,948		71,225
France	80,153		71,104		70,665
Japan	76,322		65,980		69,381
Other international	569,436		528,759		546,356
Total international	1,419,964		1,273,153		1,250,487
Total sales	$	2,256,982	$	2,115,517	$	2,104,823



	Net Long-Lived Assets
	December 31, 2017		January 1, 2017		January 3, 2016
	(In thousands)
U.S.	$	210,116	$	182,186	$	165,827
International:
Germany	88,249		1,292		1,187
China	64,815		36,458		34,494
United Kingdom	28,028		14,638		14,244
India	14,820		2,020		1,508
Finland	14,764		12,295		12,203
Italy	10,334		3,398		2,958
Singapore	9,240		6,820		7,679
Brazil	7,963		1,452		1,225
Netherlands	4,281		4,162		3,835
Sweden	3,869		2,645		1,247
Other international	19,565		7,684		6,619
Total international	265,928		92,864		87,199
Total net long-lived assets	$	476,044	$	275,050	$	253,026