Industry Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Industry Segment Information

Industry Segment 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 to the audited consolidated financial statements in the 2012 Form 10-K.

The Company realigned its organization at the beginning of fiscal year 2013. The Company's field service for products previously sold by its former Bio-discovery business, as well as its Informatics business, was moved from the Environmental Health segment into the Human Health segment. The results reported for the three and six months ended June 30, 2013 reflect this new alignment of the Company's operating segments. Financial information in this report relating to the three and six months ended July 1, 2012 has been retrospectively adjusted to reflect the changes to the operating segments. 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 technologies and applications 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 expense 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) by operating segment, excluding discontinued operations, are shown in the table below:

	Three Months Ended						Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013			July 1, 2012
	(In thousands)
Human Health
Product revenue	$	235,924		$	226,764		$	454,997		$	446,546
Service revenue	64,019			60,989			126,275			121,985
Total revenue	299,943			287,753			581,272			568,531
Operating income from continuing operations	30,076			30,353			55,096			48,564
Environmental Health
Product revenue	138,101			137,479			265,647			274,890
Service revenue	105,253			96,558			201,756			189,259
Total revenue	243,354			234,037			467,403			464,149
Operating income from continuing operations	19,298			29,344			40,026			59,473
Corporate
Operating loss from continuing operations(1)	(9,710		)	(9,910		)	(19,557		)	(21,868		)
Continuing Operations
Product revenue	$	374,025		$	364,243		$	720,644		$	721,436
Service revenue	169,272			157,547			328,031			311,244
Total revenue	543,297			521,790			1,048,675			1,032,680
Operating income from continuing operations	39,664			49,787			75,565			86,169
Interest and other expense, net (see Note 5)	12,865			11,358			24,905			24,188
Income from continuing operations before income taxes	$	26,799		$	38,429		$	50,660		$	61,981

____________________________

⁽¹⁾  The expenses related to the mark-to-market adjustment on postretirement benefit plans have been included in the Corporate operating loss from continuing operations, and together constituted a pre-tax gain of $0.05 million and a pre-tax loss of $1.2 million for the six months ended June 30, 2013 and July 1, 2012, respectively. There were no expenses related to the mark-to-market adjustment on postretirement benefit plans for either the three months ended June 30, 2013 or July 1, 2012.