Segment and Geographic Information

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company reports financial results in four segments: Brooks Product Solutions, Brooks Global Services, Brooks Life Science Systems and Contract Manufacturing. This financial reporting structure was implemented effective as of the beginning of the Company’s fourth quarter of fiscal year 2011 in response to changes in its management structure as well as the acquisition of two life science companies in the second half of fiscal 2011.

The Brooks Product Solutions segment provides a variety of products critical to technology equipment productivity and availability. Those products include atmospheric and vacuum tool automation systems, atmospheric and vacuum robots and robotic modules and cryogenic vacuum pumping, thermal management and vacuum measurement solutions which are used to create, measure and control critical process vacuum applications.

The Brooks Global Services segment provides an extensive range of support services including on-and off-site repair services, on-and off-site diagnostic support services, and installation services that enable our customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare parts support services that maximize tool productivity.

The Brooks Life Science Systems segment provides automated sample management systems for automated cold sample storage, equipment for sample preparation and handling, consumables, and parts and support services to a wide range of life science customers including pharmaceutical companies, biotechnology companies, biobanks, national laboratories, research institutes and research universities.

The Contract Manufacturing segment provided services to build equipment front-end modules, vacuum transport modules and other subassemblies which enabled the Company's customers to effectively source high quality and high reliability process tools for semiconductor market applications. The Company sold this business unit to Celestica Inc. on June 28, 2011.

The Company evaluates performance and allocates resources based on revenue, operating income (loss) and returns on invested assets. Operating income (loss) for each segment includes selling, general and administrative expenses directly attributable to the segment. The profits reported on intercompany transactions are based on the transfer prices charged which approximates fair value to third parties. Other unallocated corporate expenses, amortization of acquired intangible assets (excluding completed technology), restructuring and other charges, pension settlement and in-process research and development are excluded from the segments’ operating income (loss). The Company’s indirect overhead costs, which include various general and administrative expenses, are allocated among the segments based upon various cost drivers associated with the respective administrative function, including segment revenue, segment headcount, or an analysis of the segments that benefit from a specific administrative function. Segment assets exclude cash, cash equivalents, restricted cash, marketable securities, deferred tax assets and investments in joint ventures.

Financial information for the Company’s business segments is as follows (in thousands):

	Brooks Product Solutions		Brooks Global Services		Brooks Life Science Systems			Contract Manufacturing		Total
Year ended September 30, 2013
Revenue
Product	$	317,916	$	13,152	$	31,336		$	—	$	362,404
Services	—		76,596		11,952			—		88,548
	$	317,916	$	89,748	$	43,288		$	—	$	450,952
Gross profit	$	104,350	$	27,492	$	14,140		$	—	$	145,982
Segment operating income (loss)	$	8,509	$	10,172	$	(12,380	)	$	—	$	6,301
Depreciation expense	$	9,022	$	2,746	$	2,256		$	—	$	14,024
Assets	$	254,424	$	59,875	$	105,221		$	—	$	419,520
Year ended September 30, 2012
Revenue
Product	$	380,888	$	11,324	$	39,749		$	—	$	431,961
Services	—		74,628		12,862			—		87,490
	$	380,888	$	85,952	$	52,611		$	—	$	519,451
Gross profit	$	127,472	$	25,599	$	20,415		$	—	$	173,486
Segment operating income (loss)	$	21,319	$	9,404	$	(3,139	)	$	—	$	27,584
Depreciation expense	$	8,952	$	2,344	$	2,111		$	—	$	13,407
Assets	$	218,799	$	56,120	$	107,530		$	—	$	382,449
Year ended September 30, 2011
Revenue
Product	$	451,287	$	14,786	$	7,715		$	137,329	$	611,117
Services	—		74,058		2,930			$	—	76,988
	$	451,287	$	88,844	$	10,645		$	137,329	$	688,105
Gross profit	$	171,801	$	31,750	$	2,260		$	17,210	$	223,021
Segment operating income (loss)	$	64,921	$	13,293	$	(4,684	)	$	10,649	$	84,179
Depreciation expense	$	8,597	$	2,481	$	543		$	1,000	$	12,621
Assets	$	235,322	$	52,354	$	101,331		$	—	$	389,007

Revenue from the Brooks Product Solutions segment for the fiscal year ended September 30, 2011 includes intercompany sales of $49.2 million from this segment to the Contract Manufacturing segment. This intercompany revenue has been eliminated from the revenue of Contract Manufacturing.

Revenue for the Contract Manufacturing segment for the fiscal year ended September 30, 2011 excludes intercompany sales of $10.7 million from this segment to the Brooks Product Solutions segment.

A reconciliation of the Company’s reportable segment operating income and segment assets to the corresponding consolidated amounts as of and for the years ended September 30, 2013, 2012 and 2011 is as follows (in thousands):

	As of and for the Year Ended September 30,
	2013			2012			2011
Segment operating income	$	6,301		$	27,584		$	84,179
Other unallocated corporate expenses(1)	3,002			(1,833		)	1,135
Amortization of acquired intangible assets	5,853			4,618			2,411
Restructuring and other charges	6,465			3,275			1,036
Pension settlement	—			8,937			—
In-process research and development	—			3,026			—
Total operating income (loss)	$	(9,019	)	$	9,561		$	79,597

Segment assets	$	419,520	$	382,449
Cash, cash equivalents, restricted cash and marketable securities	173,539		200,994
Deferred tax assets	115,985		120,157
Investments in joint ventures	25,687		31,428
Other unallocated corporate net assets	2,032		6,932
Total assets	$	736,763	$	741,960

 ______________

(1) Other unallocated corporate expenses for the year ended September 30, 2012 includes a credit of $3.3 million related to insurance proceeds received as reimbursement of litigation costs previously incurred.

Net revenue based upon the source of the order by geographic area is as follows (in thousands):

	Year Ended September 30,
	2013		2012		2011
North America	$	193,222	$	230,735	$	349,456
Asia/Pacific	165,452		194,711		244,524
Europe	92,278		94,005		94,125
	$	450,952	$	519,451	$	688,105

Property, plant and equipment by geographic area are as follows (in thousands):

	September 30,
	2013		2012
North America	$	38,869	$	51,546
Asia/Pacific	1,646		2,123
Europe	7,355		10,809
	$	47,870	$	64,478