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Segments Segments | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Segments | Segments Through March 31, 2019, the Company was a single operating segment. In April 2019, the Company initiated efforts to better deploy resources, realize inherent synergies, and position the Company for growth with a core focus on healthcare and initiated plans to achieve this through various corporate activities, including partnering, potential asset sales, and operating cost reductions. Thereafter, the Company's CODM assessed the operating performance of and allocated resources for several operating segments using Segment Adjusted EBITDA. Management believes this financial metric is a key indicator of operating results since it excludes noncash revenues and expenses that are not reflective of the underlying business performance of an individual enterprise. The Company defines Segment Adjusted EBITDA as net loss before (i) interest expense, (ii) income tax expense or benefit, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) loss on impairment of goodwill and other long-lived assets, (vi) equity in net loss of affiliates, and (vii) recognition of previously deferred revenue associated with upfront and milestone payments as well as cash outflows from capital expenditures and investments in affiliates. Because the Company uses Segment Adjusted EBITDA as its primary measure of segment performance, it has included this measure in its discussion of segment operating results. The Company has also disclosed revenues from external customers and intersegment revenues for each reportable segment. Corporate expenses are not allocated to the segments and are managed at a consolidated level. The CODM does not use total assets by segment to evaluate segment performance or allocate resources, and accordingly, these amounts are not required to be disclosed. The Company's CODM now regularly reviews disaggregated financial information for each of the Company's operating segments. The Company's segment presentation has been recast to retrospectively reflect the change from one reportable segment to the newly identified reportable segments. For the three and nine months ended September 30, 2019, the Company's reportable segments are (i) Precigen, (ii) MBP, (iii) the Fine Chemicals division, (iv) Okanagan, and (v) Trans Ova. These identified reportable segments met the quantitative thresholds for the nine months ended September 30, 2019, to be reported separately. See Note 1 for a description of Precigen, MBP, Okanagan, and Trans Ova. The Company's Fine Chemicals division is an operating division within Intrexon which is focused primarily on microbial production of therapeutic compounds. The All Other category as reported below reflects Intrexon's other operating segments that do not meet the quantitative thresholds to report separately. Information by reportable segment was as follows:
| Three Months Ended September 30, 2019
| Precigen |  | MBP |  | Fine Chemicals |  | Okanagan |  | Trans Ova |  | All Other |  | Total
Revenues from external customers | $ | 444 |  |  | $ | 1,117 |  |  | $ | 2,177 |  |  | $ | 6 |  |  | $ | 13,981 |  |  | $ | 5,318 |  |  | $ | 23,043 |
Intersegment revenues | 2,313 |  |  | — |  |  | 1,225 |  |  | — |  |  | 257 |  |  | 78 |  |  | 3,873 |
Total revenues | $ | 2,757 |  |  | $ | 1,117 |  |  | $ | 3,402 |  |  | $ | 6 |  |  | $ | 14,238 |  |  | $ | 5,396 |  |  | $ | 26,916 |
Segment Adjusted EBITDA | $ | (5,953 | ) |  | $ | (9,024 | ) |  | $ | 144 |  |  | $ | (4,323 | ) |  | $ | (5,560 | ) |  | $ | (8,526 | ) |  | $ | (33,242 | )
| Three Months Ended September 30, 2018
| Precigen |  | MBP |  | Fine Chemicals |  | Okanagan |  | Trans Ova |  | All Other |  | Total
Revenues from external customers | $ | 6,822 |  |  | $ | 2,083 |  |  | $ | 1,103 |  |  | $ | 10 |  |  | $ | 15,634 |  |  | $ | 6,771 |  |  | $ | 32,423 |
Intersegment revenues | 200 |  |  | 2 |  |  | 1,160 |  |  | — |  |  | 136 |  |  | 120 |  |  | 1,618 |
Total revenues | $ | 7,022 |  |  | $ | 2,085 |  |  | $ | 2,263 |  |  | $ | 10 |  |  | $ | 15,770 |  |  | $ | 6,891 |  |  | $ | 34,041 |
Segment Adjusted EBITDA | $ | (7,965 | ) |  | $ | (8,192 | ) |  | $ | (343 | ) |  | $ | (5,158 | ) |  | $ | (1,844 | ) |  | $ | (9,054 | ) |  | $ | (32,556 | )
| Nine Months Ended September 30, 2019
| Precigen |  | MBP |  | Fine Chemicals |  | Okanagan |  | Trans Ova |  | All Other |  | Total
Revenues from external customers | $ | 2,174 |  |  | $ | 3,813 |  |  | $ | 4,167 |  |  | $ | 45 |  |  | $ | 53,307 |  |  | $ | 18,711 |  |  | $ | 82,217 |
Intersegment revenues | 7,090 |  |  | 2 |  |  | 4,090 |  |  | — |  |  | 1,204 |  |  | 646 |  |  | 13,032 |
Total revenues | $ | 9,264 |  |  | $ | 3,815 |  |  | $ | 8,257 |  |  | $ | 45 |  |  | $ | 54,511 |  |  | $ | 19,357 |  |  | $ | 95,249 |
Segment Adjusted EBITDA | $ | (20,789 | ) |  | $ | (26,238 | ) |  | $ | (979 | ) |  | $ | (25,367 | ) |  | $ | (2,854 | ) |  | $ | (26,020 | ) |  | $ | (102,247 | )
| Nine Months Ended September 30, 2018
| Precigen |  | MBP |  | Fine Chemicals |  | Okanagan |  | Trans Ova |  | All Other |  | Total
Revenues from external customers | $ | 22,285 |  |  | $ | 5,030 |  |  | $ | 4,211 |  |  | $ | 37 |  |  | $ | 59,467 |  |  | $ | 26,228 |  |  | $ | 117,258 |
Intersegment revenues | 431 |  |  | 8 |  |  | 3,954 |  |  | — |  |  | 382 |  |  | 847 |  |  | 5,622 |
Total revenues | $ | 22,716 |  |  | $ | 5,038 |  |  | $ | 8,165 |  |  | $ | 37 |  |  | $ | 59,849 |  |  | $ | 27,075 |  |  | $ | 122,880 |
Segment Adjusted EBITDA | $ | (20,797 | ) |  | $ | (22,059 | ) |  | $ | (1,244 | ) |  | $ | (16,609 | ) |  | $ | (1,901 | ) |  | $ | (31,088 | ) |  | $ | (93,698 | )
The table below reconciles total revenues from reportable segments to total consolidated revenues:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Total revenues from reportable segments | $ | 21,520 |  |  | $ | 27,150 |  |  | $ | 75,892 |  |  | $ | 95,805 |
Other revenues, including from other operating segments | 5,396 |  |  | 6,916 |  |  | 19,504 |  |  | 27,497 |
Elimination of intersegment revenues | (3,873 | ) |  | (1,618 | ) |  | (13,032 | ) |  | (5,913 | )
Total consolidated revenues | $ | 23,043 |  |  | $ | 32,448 |  |  | $ | 82,364 |  |  | $ | 117,389 |
The table below reconciles Segment Adjusted EBITDA for reportable segments to consolidated net loss before income taxes:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Segment Adjusted EBITDA for reportable segments | $ | (24,716 | ) |  | $ | (23,502 | ) |  | $ | (76,227 | ) |  | $ | (62,610 | )
All Other Segment Adjusted EBITDA | (8,526 | ) |  | (9,054 | ) |  | (26,020 | ) |  | (31,088 | )
Remove cash paid for capital expenditures and investments in affiliates | 8,115 |  |  | 10,373 |  |  | 34,021 |  |  | 30,422 |
Add recognition of previously deferred revenue associated with upfront and milestone payments | 5,770 |  |  | 7,201 |  |  | 16,685 |  |  | 24,100 |
Other expenses: |  |  |  |  |  |  |
Interest expense | (4,471 | ) |  | (3,999 | ) |  | (13,140 | ) |  | (4,240 | )
Depreciation and amortization | (6,021 | ) |  | (8,303 | ) |  | (18,711 | ) |  | (25,184 | )
Impairment loss | (626 | ) |  | — |  |  | (626 | ) |  | — |
Reacquisition of in-process research and development | — |  |  | (8,721 | ) |  | — |  |  | (8,721 | )
Stock-based compensation expense | (5,423 | ) |  | (8,132 | ) |  | (14,538 | ) |  | (28,340 | )
Equity in net loss of affiliates | (1,647 | ) |  | (2,870 | ) |  | (5,034 | ) |  | (9,880 | )
Other | 35 |  |  | — |  |  | 35 |  |  | — |
Unallocated corporate costs | (13,544 | ) |  | (25,440 | ) |  | (43,657 | ) |  | (75,319 | )
Eliminations | (3,092 | ) |  | (621 | ) |  | (9,104 | ) |  | (1,659 | )
Consolidated net loss before income taxes | $ | (54,146 | ) |  | $ | (73,068 | ) |  | $ | (156,316 | ) |  | $ | (192,519 | )
As of September 30, 2019 and December 31, 2018, the Company had $14,373 and $16,839, respectively, of long-lived assets in foreign countries. The Company recognized revenues derived in foreign countries totaling $3,325 and $2,235 for the three months ended September 30, 2019 and 2018, respectively, and $7,785 and $10,389 for the nine months ended September 30, 2019 and 2018, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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