Segment and geographic information

12 Months Ended

Jul. 31, 2014

Segment and geographic information

16. Segment and geographic information

Our business is strategically aligned into three reportable segments: Medical Imaging, Ultrasound, and Security Technology. Our business segments are described as follows:

• Medical Imaging primarily includes systems and subsystems for CT and MRI medical imaging equipment as well as state-of-the-art, selenium-based detectors for screening of breast cancer and other diagnostic applications in mammography.

• Ultrasound includes ultrasound systems and transducers primarily in the urology, surgery (including robotic assisted surgery), anesthesia and point-of-care markets.

• Security Technology includes advanced threat detecting CT systems utilizing our expertise in advanced imaging technology, primarily used in the checked baggage screening at airports worldwide.

The table below presents information about our reportable segments:

	Years Ended July 31,
(in millions)	2014			2013			2012
Product Revenue:
Medical Imaging	$	291.3		$	305.6		$	290.7
Ultrasound		152.3			149.6			151.2
Security Technology		65.9			71.6			52.8
Total product revenue, net	$	509.5		$	526.8		$	494.7
Engineering Revenue:
Medical Imaging	$	4.3		$	13.0		$	11.1
Ultrasound		0.2			0.2			—
Security Technology		3.5			10.4			10.8
Total engineering revenue, net	$	8.0		$	23.6		$	21.9
Net Revenue:
Medical Imaging	$	295.6		$	318.6		$	301.8
Ultrasound		152.5		$	149.8			151.2
Security Technology		69.4		$	82.0			63.6
Total net revenue	$	517.5		$	550.4		$	516.6
Income (loss) before income taxes:
Medical Imaging (A)	$	31.0		$	31.9		$	18.9
Ultrasound (B)		(6.8	)		(3.7	)		10.8
Security Technology (C)		4.9			17.2			10.3
Total income from operations		29.1			45.4			40.0
Total other (expense) income, net		(0.1	)		(1.3	)		4.2
Income before income taxes	$	29.0		$	44.1		$	44.2

	As of July 31,
(in millions)	2014		2013
Assets by segment:
Medical Imaging (D)	$	218.5	$	217.1
Ultrasound (E)		235.5		218.5
Security Technology		35.0		53.3
Total reportable segment assets		489.0		488.9
Corporate assets (F)		125.3		98.9
Total assets	$	614.3	$	587.8

	As of July 31,		As of July 31,
(in millions)	2014		2013
Goodwill by segment:
Medical Imaging	$	1.9	$	1.9
Ultrasound		55.1		48.2
Total goodwill	$	57.0	$	50.1

(A) Includes restructuring charges of $1.7 million and $1.1 million for fiscal years 2014 and 2013, respectively. Includes $2.2 million of contingent consulting fees related to the tax refund and related interest received in fiscal year 2012.

(B) Includes restructuring charges of $1.4 million and $2.2 million for fiscal year 2014 and 2013, respectively.

(C) Includes restructuring charges of $0.4 million and $0.2 million for fiscal year 2014 and 2013, respectively. Includes $0.5 million of contingent consulting fees related to the tax refund and related interest received in fiscal year 2012.

(D) Includes net intangible assets from acquisitions of $26.0 million and $29.4 million, respectively at July 31, 2014 and 2013.

(E) Includes net intangible assets from acquisitions of $19.9 million and $24.2 million, respectively at July 31, 2014 and 2013, relating to our acquisition of Ultrasonix during the third quarter of fiscal year 2013.

(F) Includes cash, cash equivalents and marketable securities of $60.9 million and $57.4 million, as of July 31, 2014 and 2013, respectively.

Information regarding share-based compensation and depreciation and amortization by segment for the fiscal years 2014, 2013 and 2012 are as follows:

	Years Ended July 31,
(in millions)	2014		2013		2012
Share-based compensation expense:
Medical Imaging	$	6.6	$	7.6	$	7.8
Ultrasound		2.8		2.1		3.6
Security Technology		2.1		1.9		2.0
Total share-based compensation expense	$	11.5	$	11.6	$	13.4
Depreciation and amortization:
Medical Imaging	$	11.5	$	11.5	$	11.5
Ultrasound		9.1		4.7		5.1
Security Technology		1.5		1.1		1.2
Total depreciation and amortization	$	22.1	$	17.3	$	17.8

Information regarding geographic areas for fiscal years 2014, 2013, and 2012 are as follows:

	Years Ended July 31,
(in millions)	2014		2013		2012
Net Revenue:
United States	$	183.8	$	209.6	$	199.5
Japan		66.2		87.0		81.9
Germany		61.8		69.8		63.5
Netherlands		70.2		69.7		61.4
Other		135.5		114.3		110.3
Total net revenue	$	517.5	$	550.4	$	516.6

	July 31,
	2014		2013		2012
Property, plant and equipment, net:
United States	$	66.1	$	62.6	$	50.7
Denmark		19.8		19.7		18.6
China		20.0		20.2		19.0
Other (A)		8.3		8.5		8.5
Total property, plant and equipment, net	$	114.2	$	111.0	$	96.8

(A) – Other property, plant and equipment are primarily in Canada.

Revenues are attributed to countries based on the location of our customers. For OEM sales, our customer location may differ from the location where the ultimate completed systems are sold by the OEM into the market.