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14. Segment Reporting
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information
14. SEGMENT INFORMATION

Bio-Rad is a multinational manufacturer and worldwide distributor of its own life science research products and clinical diagnostics products.  We have two reportable segments:  Life Science and Clinical Diagnostics.  These reportable segments are strategic business lines that offer more than 8,000 different products and services and require different marketing strategies. We do not disclose quantitative information about our different products and services as it is impractical to do so based primarily on the numerous products and services that we sell and the global markets that we serve.

The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research.  These products are sold to university and medical school laboratories, pharmaceutical and biotechnology companies, food testing laboratories and government and industrial research facilities.

The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market.  These products are sold to reference laboratories, hospital laboratories, state newborn screening facilities, physicians’ office laboratories, transfusion laboratories and insurance and forensic testing laboratories.

Other Operations include the remainder of our former Analytical Instruments segment.

Segment results are presented in the same manner as we present our operations internally to make operating decisions and assess performance. The accounting policies of the segments are the same as those described in Significant Accounting Policies (see Note 1).  Segment profit or loss includes an allocation of corporate expense based upon sales and an allocation of interest expense based upon accounts receivable and inventories.  The difference between total segment allocated interest expense, depreciation and amortization, and capital expenditures and the corresponding consolidated amounts is attributable to our corporate headquarters.  Segments are expected to manage only assets completely under their control.  Accordingly, segment assets include primarily accounts receivable, inventories and gross machinery and equipment.  Goodwill balances have been included in corporate for segment reporting purposes.

Information regarding industry segments at December 31, 2012, 2011, and 2010 and for the years then ended is as follows (in millions):

 
 
Life
Science
 
Clinical
Diagnostics
 
Other
Operations
Segment net sales 
2012
$
688.4

 
$
1,365.5

 
$
15.3

 
2011
694.7

 
1,363.8

 
15.0

 
2010
648.1

 
1,265.3

 
13.7

 
 
 
 
 
 
 
Allocated interest expense
2012
$
13.1

 
$
37.8

 
$
0.2

 
2011
14.0

 
38.9

 
0.2

 
2010
17.1

 
46.4

 
0.2

 
 
 
 
 
 
 
Depreciation and amortization
2012
$
26.3

 
$
92.9

 
$
0.1

 
2011
17.3

 
93.2

 
0.2

 
2010
15.0

 
84.9

 
0.2

 
 
 
 
 
 
 
Segment profit
2012
$
11.4

 
$
197.8

 
$
1.6

 
2011
45.7

 
197.9

 
1.2

 
2010
51.1

 
171.4

 
1.4

 
 
 
 
 
 
 
Segment assets
2012
$
353.1

 
$
917.0

 
$
4.4

 
2011
357.4

 
854.8

 
5.7

 
 
 
 
 
 
 
Capital expenditures
2012
$
17.3

 
$
76.8

 
$
0.1

 
2011
15.4

 
71.6

 
—


Net corporate operating expense consists of receipts and expenditures that are not the primary responsibility of segment operating management and therefore are not allocated to the segments for performance assessment by our chief operating decision maker. The following reconciles total segment profit to consolidated income before taxes (in millions):
 
 
 
Year Ended December 31,
 
2012
 
2011
 
2010
Total segment profit
$
210.8

 
$
244.8

 
$
223.9

Foreign exchange losses
(5.0
)
 
(13.8
)
 
(3.9
)
Net corporate operating, interest and other expense, net not allocated to segments
(4.8
)
 
(2.8
)
 
(3.6
)
Other income (expense), net
21.9

 
7.6

 
3.9

Consolidated income before taxes
$
222.9

 
$
235.8

 
$
220.3





The following reconciles total segment assets to consolidated total assets (in millions):

 
 
December 31,
 
 
2012
 
2011
Total segment assets
 
$
1,274.5

 
$
1,217.9

Cash and other current assets
 
1,092.0

 
968.2

Property, plant and equipment, net, excluding
 

 

  segment specific gross machinery and equipment
 
(4.2
)
 
(27.3
)
Goodwill, net
 
495.4

 
468.9

Other long-term assets
 
579.1

 
469.1

Total assets
 
$
3,436.8

 
$
3,096.8




The following presents net sales to external customers by geographic region based primarily on the location of the use of the product or service (in millions):

 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Europe
 
$
837.0

 
$
896.4

 
$
842.6

Pacific Rim
 
425.7

 
398.4

 
347.8

United States
 
656.7

 
631.0

 
600.5

Other (primarily Canada and Latin America)
 
149.8

 
147.7

 
136.2

Total net sales
 
$
2,069.2

 
$
2,073.5

 
$
1,927.1


The following presents Other assets and Property, plant and equipment, net by geographic region based upon the location of the asset (in millions):

 
 
December 31,
 
 
2012
 
2011
Europe
 
$
199.1

 
$
180.9

Pacific Rim
 
30.0

 
26.0

United States  
 
487.8

 
338.7

Other (primarily Canada and Latin America)
 
18.1

 
13.4

Total Other assets and Property, plant and equipment, net
 
$
735.0

 
$
559.0