Reportable Segment and Major Customers Information

3 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Reportable Segment and Major Customers Information

5. Reportable Segment and Major Customers Information

Meridian was formed in 1976 and functions as a fully-integrated research, development, manufacturing, marketing and sales organization with primary emphasis in the fields of in vitro diagnostics and life science. Our principal businesses are (i) the development, manufacture and distribution of diagnostic test kits primarily for gastrointestinal, viral, respiratory and parasitic infectious diseases; and (ii) the manufacture and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents used by researchers and other diagnostic manufacturers, and the contract development and manufacture of proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.

Our reportable segments are Diagnostics and Life Science, both of which are headquartered in Cincinnati, Ohio, which also serves as the Diagnostics segment’s base of manufacturing operations and research and development. The Diagnostics segment has sales and distribution facilities in the United States, Europe and Australia. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; 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, including sales and business development offices in Singapore and Beijing, China to further pursue growing revenue opportunities in Asia.

Amounts due from two Diagnostics distributor customers accounted for 26% and 21% of consolidated accounts receivable at December 31, 2015 and September 30, 2015, respectively. Revenues from these two distributor customers accounted for 39% and 41% of the Diagnostics segment third-party revenues during the three months ended December 31, 2015 and 2014, respectively; and represented 29% and 31% of consolidated revenues for the fiscal 2016 and 2015 first quarters, respectively.

Within our Life Science segment, two diagnostic manufacturing customers accounted for 18% of the segment’s third-party revenues during each of the three months ended December 31, 2015 and 2014.

Segment information for the interim periods is as follows:

	Diagnostics		Life Science		Eliminations(1)			Total
Three Months Ended December 31, 2015
Net revenues—
Third-party	$	35,301	$	11,859	$	—		$	47,160
Inter-segment		71		367		(438	)		—
Operating income		10,330		3,236		20			13,586
Goodwill (December 31, 2015)		1,250		20,814		—			22,064
Other intangible assets, net (December 31, 2015)		2,236		3,229		—			5,465
Total assets (December 31, 2015)		120,780		65,927		(272	)		186,435
Three Months Ended December 31, 2014
Net revenues—
Third-party	$	36,586	$	11,427	$	—		$	48,013
Inter-segment		104		297		(401	)		—
Operating income		10,284		2,489		(104	)		12,669
Goodwill (September 30, 2015)		1,250		21,099		—			22,349
Other intangible assets, net (September 30, 2015)		2,364		3,567		—			5,931
Total assets (September 30, 2015)		119,939		63,670		(327	)		183,282

(1) Eliminations consist of inter-segment transactions.

Transactions between segments are accounted for at established intercompany prices for internal and management purposes, with all intercompany amounts eliminated in consolidation.