Segment and Related Information

12 Months Ended

Jun. 30, 2015

Segment and Related Information

15. SEGMENT AND RELATED INFORMATION

The Company’s business units have been changed to align with how its Chief Operating Decision Maker (“CODM”) review performance and make decisions in managing the Company. The business units were historically comprised of three reportable segments: (i) research, (ii) molecular diagnostics and (iii) pharmaceutical and clinical services. Currently the business units have been aggregated into two reportable segments: (i) diagnostics and (ii) other, which was formerly the research and pharmaceutical and clinical services segments. The diagnostics segment provides testing and collaborative development of testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to ensure optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The other segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients, and includes corporate services such as finance, human resources, legal and information technology. The prior periods presented have been restated to conform to the current presentation.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 1). The Company evaluates segment performance based on income (loss) before interest income and other income and expense.

	Diagnostics		Other			Total
Year ended June 30, 2015:
Revenues	$	695.5	$	27.6		$	723.1
Depreciation and amortization		20.5		4.5			25.0
Segment operating income (loss)		217.1		(82.9	)		134.2
Year ended June 30, 2014:
Revenues	$	748.2	$	30.0		$	778.2
Depreciation and amortization		9.9		3.9			13.8
Segment operating income (loss)		338.0		(63.6	)		274.4
Year ended June 30, 2013:
Revenues	$	582.4	$	30.8		$	613.2
Depreciation and amortization		5.0		3.9			8.9
Segment operating income (loss)		291.5		(63.5	)		228.0

	Years Ended June 30,
	2015		2014			2013
Total operating income for reportable segments	$	134.2	$	274.4		$	228.0
Unallocated amounts:
Interest income		0.4		5.4			5.5
Other		0.3		(2.0	)		(0.2	)
Income from operations before income taxes		134.9		277.8			233.3
Income tax provision		54.7		101.6			86.1
Net income	$	80.2	$	176.2		$	147.2

The following table indicates significant revenues from major products by operating segment:

	Years Ended June 30,						Change						% of Total Revenue
	2015		2014		2013		2015			2014			2015			2014			2013
Diagnostic revenues:
myRisk	$	320.7	$	53.7	$	—	$	267.0		$	53.7			44	%		7	%		N/A
BRACAnalysis		237.6		517.9		460.3		(280.3	)		57.6			33	%		67	%		75	%
VectraDA		43.7		14.0		—		29.7			14.0			6	%		2	%		N/A
Other		93.5		162.6		122.1		(69.1	)		40.5			13	%		21	%		20	%
Total diagnostic revenue		695.5		748.2		582.4		(52.7	)		165.8			96	%		96	%		95	%
Other		27.6		30.0		30.8		(2.4	)		(0.8	)		4	%		4	%		5	%
Total revenue	$	723.1	$	778.2	$	613.2	$	(55.1	)	$	165.0			100	%		100	%		100	%

The following table sets forth a comparison of balance sheet assets by operating segment:

	June 30,
	2015		2014
Net equipment, leasehold improvements and property:
Diagnostics		34.5		24.3
Other		32.7		10.3
Total	$	67.2	$	34.6
Total Assets:
Diagnostics		450.6		409.9
Other		130.2		143.4
Total	$	580.8	$	553.3

The following table reconciles assets by operating segment to total assets:

	June 30,
	2015		2014
Total assets by segment	$	580.8	$	553.3
Cash, cash equivalents, and marketable investment securities (1)		185.4		270.5
Total	$	766.2	$	823.8

(1) The Company manages cash, cash equivalents, and marketable investment securities at the consolidated level for all segments

The majority of the Company’s revenues were derived from the sale of diagnostic tests in the United States. There were no customers that accounted for greater than 10% of revenue in the years ended June 30, 2015, 2014 and 2013.