Industry Segment Information

9 Months Ended

Sep. 29, 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 nine months ended September 29, 2013 reflect this new alignment of the Company's operating segments. Financial information in this report relating to the three and nine months ended September 30, 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						Nine Months Ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
	(In thousands)
Human Health
Product revenue	$	227,167		$	225,029		$	682,164		$	671,576
Service revenue	65,217			62,224			191,492			184,208
Total revenue	292,384			287,253			873,656			855,784
Operating income from continuing operations	43,901			34,398			98,997			82,962
Environmental Health
Product revenue	128,578			124,038			394,225			398,928
Service revenue	103,315			98,313			305,071			287,572
Total revenue	231,893			222,351			699,296			686,500
Operating income from continuing operations	21,896			18,475			61,922			77,948
Corporate
Operating loss from continuing operations(1)	(8,601		)	(9,655		)	(28,158		)	(31,523		)
Continuing Operations
Product revenue	$	355,745		$	349,067		$	1,076,389		$	1,070,504
Service revenue	168,532			160,537			496,563			471,780
Total revenue	524,277			509,604			1,572,952			1,542,284
Operating income from continuing operations	57,196			43,218			132,761			129,387
Interest and other expense, net (see Note 5)	12,340			11,872			37,245			36,060
Income from continuing operations before income taxes	$	44,856		$	31,346		$	95,516		$	93,327

____________________________

⁽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 nine months ended September 29, 2013 and September 30, 2012, respectively. There were no expenses related to the mark-to-market adjustment on postretirement benefit plans for either the three months ended September 29, 2013 or September 30, 2012.