Industry Segment Information

6 Months Ended

Jul. 05, 2020

Industry Segment InformationThe 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 to the audited consolidated financial statements in the 2019 Form 10-K.

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

•Discovery & Analytical Solutions. Provides products and services targeted towards the life sciences and applied markets.

•Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, immunodiagnostics 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.

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


	Three Months Ended						Six Months Ended
	July 5, 2020		June 30, 2019		July 5, 2020		June 30, 2019
	(In thousands)
Discovery & Analytical Solutions
Product revenue	$	225,617	$	259,514	$	440,973	$	482,304
Service revenue	165,385		174,453		348,424		340,496
Total revenue	391,002		433,967		789,397		822,800
Operating income from continuing operations	39,430		57,689		67,943		94,616
Diagnostics
Product revenue	375,889		242,600		586,062		458,532
Service revenue	44,827		45,950		88,655		89,922
Total revenue	420,716		288,550		674,717		548,454
Operating income from continuing operations	160,300		49,255		189,891		80,741
Corporate
Operating loss from continuing operations	(24,091)		(15,209)		(37,513)		(30,292)
Continuing Operations
Product revenue	601,506		502,114		1,027,035		940,836
Service revenue	210,212		220,403		437,079		430,418
Total revenue	811,718		722,517		1,464,114		1,371,254
Operating income from continuing operations	175,639		91,735		220,321		145,065
Interest and other expense, net (see Note 5)	10,812		19,908		20,805		36,473
Income from continuing operations before income taxes	$	164,827	$	71,827	$	199,516	$	108,592