Major Customers and Segment Data

12 Months Ended

Sep. 30, 2011

Major Customers and Segment Data [Abstract]

Major Customers and Segment Data

(9) Major Customers and Segment Data

Our reportable operating segments are U.S. Diagnostics, European Diagnostics and Life Science. Initial segmentation between Diagnostics and Life Science has been determined based upon products and customers, with further segmentation of Diagnostics between U.S. and European being based upon geographic regions served and management responsibility. The U.S. Diagnostics operating segment consists of manufacturing operations in Cincinnati, Ohio, and the sale and distribution of diagnostic test kits in the U.S. and countries outside of Europe, Africa and the Middle East. The European Diagnostics operating segment consists of the sale and distribution of diagnostic test kits in Europe, Africa and the Middle East. The Life Science operating segment consists of manufacturing operations in Memphis, Tennessee; Saco, Maine; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents domestically and abroad. During the fourth quarter of fiscal 2011, plans were announced to consolidate the Saco, Maine operations into the Memphis, Tennessee facility, with such consolidation commencing early in the fiscal 2012 first quarter and expected to be completed near the end of the second quarter of fiscal 2012. The Life Science operating segment also includes the contract development and manufacture of cGMP clinical grade proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.

Sales to individual customers constituting 10% or more of consolidated net sales are as follows:

Year Ended September 30,	2011				2010				2009
Customer A	$	29,632	(19	)%	$	33,821	(24	)%	$	37,876	(26	)%
Customer B	$	18,308	(11	)%	$	18,204	(13	)%	$	19,063	(13	)%

Combined international sales for the U.S. Diagnostics and Life Science operating segments were $28,975, $19,350, and $15,568 in fiscal years 2011, 2010 and 2009, respectively. Our focus product families — C. difficile, foodborne and H. pylori — accounted for 44%, 43% and 42% of consolidated net sales in fiscal 2011, 2010 and 2009, respectively. Approximately 25% of the consolidated accounts receivable balance at September 30, 2011 is largely dependent upon funds from the Italian government. We currently sole-source from a U.S. manufacturer the illumipro-10^® instrument on which our illumigene^® molecular testing platform operates. Additionally, two of our foodborne products sourced from another vendor accounted for 14%, 11% and 7% of third-party sales for our U.S. Diagnostics operating segment in fiscal 2011, 2010 and 2009, respectively.

Significant sales information by country for the European Diagnostics and Life Science operating segments is as follows. Sales are attributed to the geographic area based on the location to which the product is shipped.

Year Ended September 30,	2011		2010		2009
Italy	$	8,544	$	8,183	$	8,289
France		2,537		2,590		2,939
United Kingdom		2,373		2,646		2,373
Holland		2,142		2,045		1,828
Belgium		1,289		1,291		1,875
Other countries		7,302		7,286		8,566
Total European Diagnostics	$	24,187	$	24,041	$	25,870

Year Ended September 30,	2011		2010		2009
United States	$	15,711	$	13,907	$	13,387
Germany		4,922		3,376		2,816
United Kingdom		4,890		2,575		474
Australia		3,105		1,289		845
France		1,111		1,318		745
Other countries		8,664		4,474		5,167
Total Life Science	$	38,403	$	26,939	$	23,434

Identifiable assets for our Italian distribution organization were $17,192, $17,378 and $16,797 at September 30, 2011, 2010 and 2009, respectively. At September 30, 2011, identifiable assets for the Bioline Group’s operations in the U.K., Germany and Australia totaled approximately $12,825, $5,550 and $2,675, respectively; and totaled $16,990, $4,441 and $3,094, respectively, at September 30, 2010.

Segment information for the years ended September 30, 2011, 2010 and 2009 is as follows:

	U.S.		European
	Diagnostics		Diagnostics		Life Science		Elim (1)			Total
Fiscal Year 2011 -
Net sales -
Third-party	$	97,133	$	24,187	$	38,403	$	—		$	159,723
Inter-segment		10,322		27		756		(11,105	)		—
Operating income (2)		35,191		2,199		2,595		48			40,033
Depreciation and amortization		2,854		116		2,903		—			5,873
Capital expenditures		4,964		77		4,098		—			9,139
Goodwill		1,381		—		21,743		—			23,124
Other intangible assets		1,604		—		9,343		—			10,947
Total assets		73,850		19,390		92,467		(30,214	)		155,493
Fiscal Year 2010 -
Net sales -
Third-party	$	92,020	$	24,041	$	26,939	$	—		$	143,000
Inter-segment		10,285		20		561		(10,866	)		—
Operating income (3)		33,432		3,367		3,615		724			41,138
Depreciation and amortization		2,722		86		1,877		—			4,685
Capital expenditures		1,869		213		1,001		—			3,083
Goodwill		1,381		—		21,921		—			23,302
Other intangible assets		2,283		9		11,035		—			13,327
Total assets		72,030		18,044		90,388		(25,821	)		154,641
Fiscal Year 2009 -
Net sales -
Third-party	$	98,970	$	25,870	$	23,434	$	—		$	148,274
Inter-segment		10,700		6		715		(11,421	)		—
Operating income		39,490		4,459		4,728		102			48,779
Depreciation and amortization		2,680		92		1,588		—			4,360
Capital expenditures		2,082		81		1,480		—			3,643
Goodwill		1,381		—		8,485		—			9,866
Other intangible assets		2,909		24		4,384		—			7,317
Total assets		102,506		18,221		55,592		(20,322	)		155,997

(1)	Eliminations consist of intersegment transactions.
(2)	U.S. Diagnostics and European Diagnostics include $365 and $875, respectively, related to sales and marketing leadership reorganization costs; and Life Science includes $1,057 related to consolidation of the Maine operations into the Tennessee facility.
(3)	Life Science includes $1,240 of Bioline transaction costs.

Year Ended September 30,	2011		2010		2009
Segment operating income	$	40,033	$	41,138	$	48,779
Interest income		115		124		456
Other, net		352		138		88
Consolidated earnings before income taxes	$	40,500	$	41,400	$	49,323

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. Transactions between operating segments are accounted for at established intercompany prices for internal and management purposes with all intercompany amounts eliminated in consolidation.