Segment Information

9 Months Ended

Jun. 30, 2012

Segment Information

8. Segment Information

The Company reports financial results in four segments: Brooks Product Solutions, Brooks Global Services, Brooks Life Science Systems and Contract Manufacturing. A description of segments is included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2011.

The Company evaluates performance and allocates resources based on revenues, 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. Intersegment revenues between Brooks Product Solutions and Contract Manufacturing were eliminated from Contract Manufacturing revenues. The profits reported on intercompany transactions are based on the transfer prices charged which approximates fair value to third parties. Other unallocated corporate expenses (primarily certain legal costs associated with the Company’s past equity incentive-related practices and costs to indemnify a former executive in connection with these matters), amortization of acquired intangible assets (excluding completed technology) and restructuring are excluded from the segments’ operating income (loss). The Company’s non-allocable 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 revenues, segment headcount, or an analysis of the segments that benefit from a specific administrative function. Segment assets exclude investments in joint ventures, marketable securities and cash equivalents.

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
Three months ended June 30, 2012
Revenues
Product	$	107,725	$	2,981	$	8,466		$	—	$	119,172
Services		—		18,543		2,722			—		21,265
	$	107,725	$	21,524	$	11,188		$	—	$	140,437
Gross profit	$	36,195	$	5,868	$	4,177		$	—	$	46,240
Segment operating income (loss)	$	10,733	$	1,984	$	(2,061	)	$	—	$	10,656
Three months ended June 30, 2011
Revenues
Product	$	119,092	$	3,573	$	1,677		$	42,316	$	166,658
Services		—		18,996		482			—		19,478
	$	119,092	$	22,569	$	2,159		$	42,316	$	186,136
Gross profit	$	44,433	$	7,903	$	650		$	3,984	$	56,970
Segment operating income (loss)	$	18,737	$	3,522	$	(1,196	)	$	2,006	$	23,069
Nine months ended June 30, 2012
Revenues
Product	$	296,475	$	8,373	$	29,043		$	—	$	333,891
Services		—		56,480		9,631			—		66,111
	$	296,475	$	64,853	$	38,674		$	—	$	400,002
Gross profit	$	100,481	$	19,595	$	14,803		$	—	$	134,879
Segment operating income (loss)	$	19,415	$	7,128	$	(2,799	)	$	—	$	23,744
Nine months ended June 30, 2011
Revenues
Product	$	352,757	$	11,020	$	1,677		$	137,329	$	502,783
Services		—		53,889		482			—		54,371
	$	352,757	$	64,909	$	2,159		$	137,329	$	557,154
Gross profit	$	135,013	$	23,090	$	650		$	17,210	$	175,963
Segment operating income (loss)	$	56,884	$	9,094	$	(1,196	)	$	10,650	$	75,432
Assets
June 30, 2012	$	237,455	$	56,036	$	106,205		$	—	$	399,696
September 30, 2011	$	235,322	$	52,354	$	101,331		$	—	$	389,007

Revenues for the Brooks Product Solutions segment for the three months and nine months ended June 30, 2011 include intercompany sales of $16.2 million and $49.2 million, respectively, from this segment to the Contract Manufacturing segment. These intercompany revenues have been eliminated from the revenues of Contract Manufacturing.

Revenues for the Contract Manufacturing segment for the three months and nine months ended June 30, 2011 exclude intercompany sales of $2.9 million and $10.7 million, respectively, from this segment to the Brooks Product Solutions segment.

A reconciliation of the Company’s reportable segment operating income to the corresponding consolidated amounts for the three and nine month periods ended June 30, 2012 and 2011 is as follows (in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012			2011
Segment operating income	$	10,656	$	23,069	$	23,744		$	75,432
Other unallocated corporate expenses		316		305		(2,100	)		839
Amortization of acquired intangible assets		1,135		495		3,490			1,394
Restructuring charges		880		97		1,125			557
In-process research and development		—		—		3,026			—
Total operating income	$	8,325	$	22,172	$	18,203		$	72,642

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

	June 30, 2012		September 30, 2011
Segment assets	$	399,696	$	389,007
Investments in cash equivalents, marketable securities, joint ventures, and other unallocated corporate net assets		245,627		247,951
Total assets	$	645,323	$	636,958