Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company's Chief Executive Officer is the Company's chief operating decision maker.

The Company reports its financial results for three operating and reportable segments: (i) Brooks Product Solutions, (ii) Brooks Global Services and (iii) Brooks Life Science Systems.

The Brooks Product Solutions segment provides a variety of products and solutions that enable improved throughput and yield in controlled operating environments. Those products include integrated systems that contain atmospheric and vacuum robots, as well as cryogenic pumps and cryochillers that provide vacuum pumping solutions.

The Brooks Global Services segment provides an extensive range of support services, including repair services, diagnostic support services, and installation services, which enable its customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare parts and productivity enhancement upgrades to maximize tool productivity.

The Brooks Life Science Systems segment provides automated cold sample management systems for compound and biological 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 and research institutes. During the first quarter of fiscal year 2016, we completed an acquisition of BioStorage, a global provider of comprehensive outsource biological sample service solutions, including collection, transportation, processing, storage, protection, retrieval and disposal of biological samples. These solutions combined with the Company's existing offerings, particularly automation for sample storage and formatting, provide customers with fully integrated sample management cold chain solutions which will help them increase productivity, efficiencies and speed to market.

The Company evaluates the performance and future opportunities of its segments and allocates resources to them based on their 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. Amortization of acquired intangible assets (excluding completed technology), restructuring and other charges, pension settlement, in-process research and development, as well as other unallocated corporate expenses 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 multiple cost drivers associated with the respective administrative function, including segment revenue, headcount, or benefits that each segment derives from a specific administrative function. Segment assets exclude cash, cash equivalents, marketable securities, deferred tax assets, assets held for sale and equity method investments.

The following is the summary of the financial information for the Company’s operating and reportable segments for the three and six months ended March 31, 2016 and 2015 (in thousands):

	Brooks Product Solutions		Brooks Global Services		Brooks Life Science Systems			Total
Three Months Ended March 31, 2016:
Revenue
Product	$	86,790	$	3,448	$	11,224		$	101,462
Services	—		18,581		15,238			33,819
Total revenue	$	86,790	$	22,029	$	26,462		$	135,281
Gross profit	$	30,570	$	6,373	$	9,857		$	46,800
Segment operating income (loss)	$	4,791	$	1,867	$	(2,217	)	$	4,441
Three Months Ended March 31, 2015:
Revenue
Product	$	98,958	$	4,128	$	13,309		$	116,395
Services	—		18,709		4,209			22,918
Total revenue	$	98,958	$	22,837	$	17,518		$	139,313
Gross profit	$	33,995	$	7,043	$	4,987		$	46,025
Segment operating income (loss)	$	7,995	$	2,108	$	(4,391	)	$	5,712
Six Months Ended March 31, 2016:
Revenue
Product	$	163,351	$	6,066	$	21,225		$	190,642
Services	—		38,478		26,116			64,594
Total revenue	$	163,351	$	44,544	$	47,341		$	255,236
Gross profit	$	57,671	$	13,931	$	15,752		$	87,354
Segment operating income (loss)	$	5,128	$	4,470	$	(6,819	)	$	2,779
Six Months Ended March 31, 2015:
Revenue
Product	$	181,814	$	8,236	$	26,075		$	216,125
Services	—		37,798		8,126			45,924
Total revenue	$	181,814	$	46,034	$	34,201		$	262,049
Gross profit	$	60,917	$	15,506	$	8,690		$	85,113
Segment operating income (loss)	$	8,457	$	5,661	$	(9,907	)	$	4,211
Assets:
March 31, 2016	$	277,897	$	51,545	$	254,125		$	583,567
September 30, 2015	$	260,011	$	57,058	$	110,910		$	427,979

The following is a reconciliation of the Company’s operating and reportable segments' operating income (loss) and segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets and Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31,					Six Months Ended March 31,
	2016			2015		2016			2015
Segment operating income (loss)	$	4,441		$	5,712	$	2,779		$	4,211
Amortization of acquired intangible assets	3,091			1,914		5,302			3,826
Restructuring and other charges	7,336			685		8,811			3,353
Other unallocated corporate expenses	353			60		3,325			459
Total operating (loss) income	$	(6,339	)	$	3,053	$	(14,659	)	$	(3,427	)

	March 31, 2016		September 30, 2015
Segment assets	$	583,567	$	427,979
Cash, cash equivalents and marketable securities	68,287		214,030
Deferred tax assets	4,575		89,959
Assets held for sale	2,895		2,900
Equity method investments	25,071		24,286
Other unallocated corporate net assets	—		500
Total assets	$	684,395	$	759,654