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Segment and Related Information | 12 Months Ended
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Jun. 30, 2014
Segment and Related Information |
(10) | Segment and Related Information
The Company’s business units have been aggregated into three reportable segments: (i) research, (ii) molecular diagnostics and (iii) pharmaceutical and clinical services, formerly called companion diagnostics. The research segment is focused on the discovery of genes, biomarkers and proteins related to major common diseases and includes corporate services such as finance, human resources, legal, and information technology. The molecular diagnostics segment provides testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to ensure optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The business of Crescendo acquired in February 2014 is included as part of the molecular diagnostic segment. The pharmaceutical and clinical services segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 1). The Company evaluates segment performance based on income (loss) before interest income and other income and expense.
(In thousands) |  | Research |  |  | Molecular diagnostics |  |  | Pharmaceutical & clinical services |  |  | Total |
Year ended June 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | — |  |  | $ | 748,198 |  |  | $ | 30,018 |  |  | $ | 778,216 |
Depreciation and amortization |  |  | 2,001 |  |  |  | 9,887 |  |  |  | 1,931 |  |  |  | 13,819 |
Segment operating income (loss) |  |  | (64,981 | ) |  |  | 338,020 |  |  |  | 1,403 |  |  |  | 274,442 |
Year ended June 30, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | — |  |  | $ | 582,392 |  |  | $ | 30,773 |  |  | $ | 613,165 |
Depreciation and amortization |  |  | 2,182 |  |  |  | 4,974 |  |  |  | 1,733 |  |  |  | 8,889 |
Segment operating income (loss) |  |  | (56,428 | ) |  |  | 291,509 |  |  |  | (7,079 | ) |  |  | 228,002 |
Year ended June 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | — |  |  | $ | 472,390 |  |  | $ | 23,615 |  |  | $ | 496,005 |
Depreciation and amortization |  |  | 2,021 |  |  |  | 5,395 |  |  |  | 1,653 |  |  |  | 9,069 |
Segment operating income (loss) |  |  | (49,231 | ) |  |  | 237,737 |  |  |  | (8,188 | ) |  |  | 180,318 |
|  | Years Ended June 30, |
(In thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Total operating income for reportable segments |  | $ | 274,442 |  |  | $ | 228,002 |  |  | $ | 180,318 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 5,397 |  |  |  | 5,497 |  |  |  | 4,629 |
Other |  |  | (1,974 | ) |  |  | (223 | ) |  |  | (407 | )
Income from operations before income taxes |  |  | 277,865 |  |  |  | 233,276 |  |  |  | 184,540 |
Income tax provision |  |  | 101,640 |  |  |  | 86,137 |  |  |  | 72,389 |
Net income |  | $ | 176,225 |  |  | $ | 147,139 |  |  | $ | 112,151 |
The following table sets forth a comparison of balance sheet assets by operating segment:
(In thousands) |  | June 30, |
|  | 2014 |  |  | 2013 |
Net equipment and leasehold improvements: |  |  |  |  |  |  |  |
Research |  | $ | 8,199 |  |  | $ | 8,590 |
Molecular diagnostics |  |  | 24,316 |  |  |  | 15,769 |
Pharmaceutical and clinical services |  |  | 2,079 |  |  |  | 3,243 |
Total |  | $ | 34,594 |  |  | $ | 27,602 |
Total Assets: |  |  |  |  |  |  |  |
Research |  | $ | 67,999 |  |  | $ | 82,517 |
Molecular diagnostics |  |  | 409,795 |  |  |  | 110,329 |
Pharmaceutical and clinical services |  |  | 75,434 |  |  |  | 79,911 |
Total |  | $ | 553,228 |  |  | $ | 272,757 |
The following table reconciles assets by operating segment to total assets:
|  | June 30, |
(In thousands) |  | 2014 |  |  | 2013 |
Total assets by segment |  | $ | 553,228 |  |  | $ | 272,757 |
Cash, cash equivalents, and marketable investment securities (1) |  |  | 270,586 |  |  |  | 531,064 |
Total |  | $ | 823,814 |  |  | $ | 803,821 |
| (1) | The Company manages cash, cash equivalents, and marketable investment securities at the consolidated level for all segments
The majority of the Company’s revenues were derived from the sale of molecular diagnostic tests in the United States. There were no customers that accounted for greater than 10% of revenue in the years ended June 30, 2014, 2013 and 2012. Of the Company’s $169.2 million goodwill balance at June 30, 2014, $112.3 million related to Crescendo which is included in the molecular diagnostics segment and $56.9 million related to Myriad RBM which is included in the pharmaceutical and clinical services segment. Additionally, the majority of the Company’s long-lived assets are located in the United States.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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