Segment Information

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

15. 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 operates in three reportable segments: the Brooks Semiconductor Solutions Group segment, the Brooks Life Sciences Services segment and the Brooks Life Sciences Products segment. These reportable segments also represent the Company’s operating segments. The Company previously operated in two reportable segments: the Brooks Semiconductor Solutions Group segment and the Brooks Life Sciences segment. The Brooks Life Sciences segment consisted of the Sample Management operating segment and the GENEWIZ operating segment that aggregated into one reportable segment. During fiscal year 2020, the Company reorganized its operating segments to better align with its business activities in connection with its recent acquisitions and the Company’s strategic vision. Historical information has been adjusted to reflect the new reportable segments.

The Brooks Semiconductor Solutions Group segment provides a variety of products, services and solutions that enable improved throughput and yield in controlled operating environments, as well as an extensive range of support services. The solutions include atmospheric and vacuum robots, robotic modules, tool automation systems, contamination control of carrier pods and reticle storage. The support services include repair services, diagnostic support services, and installation services in support of the products, which enable customers to maximize process tool uptime and productivity. This segment also provides end-user customers with spare parts and enhancement upgrades to maximize tool productivity.

The Brooks Life Sciences Products segment provides automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables and instruments, that help customers manage samples throughout their research discovery and development workflows. The segment’s product offerings include the automated cold storage systems, cryogenic storage systems, consumables and instruments and the associated services business for these products.

The Brooks Life Sciences Services segment provides comprehensive sample management programs, integrated cold chain solutions, informatics, as well as sample-based laboratory services to advance scientific research and support drug development. The segment’s service offerings include sample storage, genomic sequencing, gene synthesis, laboratory processing services, laboratory analysis, and other support services which are provided to a wide range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories and research institutes.

The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the acquisition accounting impact on inventory contracts acquired and restructuring related charges as the primary performance metric when evaluating the business.

The following is the summary of the financial information for the Company’s reportable segments for the three months ended December 31, 2020 and 2019 (in thousands):

						Three Months Ended December 31,
						2020		2019
Revenue:
Brooks Semiconductor Solutions Group					$	131,358	$	118,811
Brooks Life Sciences Products						45,511		29,724
Brooks Life Sciences Services						72,634		61,965
Total revenue					$	249,503	$	210,500
Operating income:
Brooks Semiconductor Solutions Group					$	21,538	$	15,000
Brooks Life Sciences Products						7,942		362
Brooks Life Sciences Services						14,311		5,612
Reportable segment adjusted operating income						43,791		20,974
Amortization of completed technology						2,389		2,674
Amortization of other intangible assets						7,356		7,910
Restructuring charges						87		576
Other unallocated corporate expenses (income)						3,031		(852)
Total operating income						30,928		10,666
Interest income						76		699
Interest expense						(556)		(737)
Other income (expenses), net						1,329		(417)
Income before income taxes					$	31,777	$	10,211
		Brooks
		Semiconductor		Brooks Life		Brooks Life
Assets:		Solutions Group		Sciences Products		Sciences Services		Total
December 31, 2020	$	307,454	$	225,302	$	765,228	$	1,297,984
September 30, 2020		296,289		214,196		737,967		1,248,452

The following is a reconciliation of the Company’s reportable segments’ segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets as of December 31, 2020 and September 30, 2020 (in thousands):

	December 31,		September 30,
	2020		2020
Segment assets	$	1,297,984	$	1,248,452
Cash and cash equivalents, restricted cash, and marketable securities		311,983		305,694
Deferred tax assets		4,765		4,979
Total assets	$	1,614,732	$	1,559,125