SEGMENT INFORMATION

The Company retrospectively adopted ASU 2017-07 in fiscal year 2018, which impacted segment information. Service cost is reflected in operating income within the unaudited condensed consolidated statements of income while all other components of net periodic cost are recorded in Other income, net within the unaudited condensed consolidated statements of income. See Note 1, “Basis of Presentation.” The Company’s three reportable segments are Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing).

The following table presents revenue and other financial information by reportable segment:



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(in thousands)
RMS
Revenue	$	130,426	$	124,002	$	264,384	$	251,163
Operating income	34,245		33,594		72,772		71,284
Depreciation and amortization	4,901		4,945		9,754		10,037
Capital expenditures	5,314		4,404		9,939		7,007
DSA
Revenue	$	346,416	$	252,092	$	606,408	$	479,850
Operating income	56,623		51,335		97,482		89,670
Depreciation and amortization	31,042		18,965		51,829		38,334
Capital expenditures	10,894		7,102		23,696		15,425
Manufacturing
Revenue	$	108,459	$	93,035	$	208,479	$	183,879
Operating income	34,115		29,043		62,638		55,643
Depreciation and amortization	5,868		5,787		11,604		11,749
Capital expenditures	3,188		1,939		10,022		4,231

For the three months ended June 30, 2018 and July 1, 2017, reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows:



	Operating Income						Depreciation and Amortization				Capital Expenditures
	June 30, 2018			July 1, 2017			June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(in thousands)
Total reportable segments	$	124,983		$	113,972		$	41,811	$	29,697	$	19,396	$	13,445
Unallocated corporate	(48,273		)	(32,286		)	1,585		2,102		1,817		2,552
Total consolidated	$	76,710		$	81,686		$	43,396	$	31,799	$	21,213	$	15,997

For the six months ended June 30, 2018 and July 1, 2017, reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows:



	Operating Income						Depreciation and Amortization				Capital Expenditures
	June 30, 2018			July 1, 2017			June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(in thousands)
Total reportable segments	$	232,892		$	216,597		$	73,187	$	60,120	$	43,657	$	26,663
Unallocated corporate	(88,353		)	(65,205		)	3,419		4,090		5,282		5,254
Total consolidated	$	144,539		$	151,392		$	76,606	$	64,210	$	48,939	$	31,917

Revenue for each significant product or service offering is as follows:



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(in thousands)
RMS	$	130,426	$	124,002	$	264,384	$	251,163
DSA	346,416		252,092		606,408		479,850
Manufacturing	108,459		93,035		208,479		183,879
Total revenue	$	585,301	$	469,129	$	1,079,271	$	914,892

A summary of unallocated corporate expense consists of the following:



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
	(in thousands)
Stock-based compensation	$	9,616	$	7,421	$	16,607	$	13,004
Compensation, benefits, and other employee-related expenses	15,315		10,365		35,911		24,746
External consulting and other service expenses	5,010		4,085		7,944		9,852
Information technology	3,190		3,617		5,654		6,010
Depreciation	1,585		2,102		3,419		4,090
Acquisition and integration	11,692		1,191		14,556		1,212
Other general unallocated corporate	1,865		3,505		4,262		6,291
Total unallocated corporate expense	$	48,273	$	32,286	$	88,353	$	65,205

Other general unallocated corporate expense consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations.

Revenue by geographic area is as follows:



	U.S.		Europe		Canada		Asia Pacific		Other		Consolidated
	(in thousands)
Three Months Ended:
June 30, 2018	$	334,016	$	161,656	$	51,559	$	36,235	$	1,835	$	585,301
July 1, 2017	244,923		139,620		53,242		31,046		298		469,129
Six Months Ended:
June 30, 2018	$	582,996	$	322,482	$	100,137	$	70,755	$	2,901	$	1,079,271
July 1, 2017	476,234		276,501		100,429		61,141		587		914,892

Included in the Asia Pacific category above are operations located in China, Japan, Korea, Australia, Singapore, and India. Included in the Other category above are operations located in Brazil and Israel. Revenue represents sales originating in entities physically located in the identified geographic area.