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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION As a result of our strategic acquisition of Envigo in November 2021, which added a complementary research model platform, our full spectrum solutions span two segments: DSA and RMS. Through our DSA segment, we support the discovery, non-clinical and clinical development needs of researchers and clinicians for primarily small molecule drug candidates, but also including biotherapeutics and biomedical devices. Our scientists have the skills in analytical instrumentation development, chemistry, computer software development, histology, pathology, physiology, surgery, analytical chemistry, drug metabolism, pharmacokinetics, and toxicology to make the services and products we provide increasingly valuable to our current and potential clients. Our principal clients are scientists engaged in analytical chemistry, drug safety evaluation, clinical trials, drug metabolism studies, pharmacokinetics and basic research from small start-up biotechnology companies to some of the largest global pharmaceutical companies. Through our RMS segment, we offer access to a wide range of high-quality small and large research models for basic research and drug discovery and development, as well as specialized models for specific diseases and therapeutic areas. We combine deep animal husbandry expertise and expanded access to scientists across the discovery and preclinical continuum, which reduces nonclinical lead times and provides enhanced project delivery. In conjunction with our DSA segment, we have the ability to run selected nonclinical studies directly on-site at closely located research model facilities and have access to innovative genetically engineered models and services solutions. We have long-standing relationships with our principal clients, which include biopharmaceutical companies, contract research organizations ("CRO"), and academic and government organizations. Segment Information Revenue and other financial information by segment for the fiscal years ended September 30, 2023 and September 30, 2022 are as follows: During the fiscal years ended September 30, 2023 and September 30, 2022, the RMS segment recognized intersegment revenue of $8,793 and $7,250, respectively, related to sales to the DSA segment. The following table presents revenue and other financial information by reportable segment for the fiscal years ended September 30, 2023 and 2022:
| Fiscal Year Ended September 30, 2023 |  | Fiscal Year Ended September 30, 2022
Revenue |  |  |
DSA: |  |  |
Service revenue | $ | 180,348 |  |  | $ | 161,113 |
Product revenue | 4,742 |  |  | 4,176 |
RMS: |  |  |
Service revenue | 43,465 |  |  | 41,865 |
Product revenue | 343,870 |  |  | 340,502 |
| $ | 572,425 |  |  | $ | 547,656 |
Operating Income (Loss) |  |  |
DSA | $ | 15,246 |  |  | $ | 22,330 |
RMS | (24,904) |  |  | (189,346) |
Unallocated Corporate | (71,802) |  |  | (96,436) |
| $ | (81,460) |  |  | $ | (263,452) |
Interest expense | (43,019) |  |  | (29,704) |
Other income (expense) | 237 |  |  | (59,293) |
Loss before income taxes | $ | (124,242) |  |  | $ | (352,449) |
| Fiscal Year Ended September 30, 2023 |  | Fiscal Year Ended September 30, 2022
Depreciation and amortization: |  |  |
DSA | $ | 16,371 |  |  | $ | 13,553 |
RMS | 38,288 |  |  | 35,771 |
Unallocated Corporate | 58 |  |  | — |
| $ | 54,717 |  |  | $ | 49,324 |
Capital expenditures: |  |  |
DSA | $ | 13,314 |  |  | $ | 16,224 |
RMS | 14,189 |  |  | 20,076 |
| $ | 27,503 |  |  | $ | 36,300 |
As a result of the application of ASC 805 for the Envigo and OBRC acquisitions, we recognized $679 and $10,246 of amortization of inventory step-up during the fiscal years ended September 30, 2023 and September 30, 2022, respectively, which were reflected in the RMS reportable segment. During the fiscal years ended September 30, 2023 and 2022, we recognized goodwill impairment charges of $66,367 and $236,005, respectively, which were reflected in the RMS reportable segment. Refer to Note 6 - Goodwill and Intangible Assets for further discussion of the goodwill impairment charge. During the fiscal years ended September 30, 2023 and 2022, we recognized $7,844 and $24,202, respectively, of non-cash stock-based compensation expense, which were reflected in unallocated corporate expenses, and a loss of $0 and $56,714, respectively, on fair value remeasurement of embedded derivative, which were reflected in other (expense) income. Other unallocated corporate operating expenses include compensation and other employee-related expenses, certain external professional fees, insurance, information technology-related fees and acquisition and integration costs. The following represents total assets by segment:
| Fiscal Year Ended September 30, 2023 |  | Fiscal Year Ended September 30, 2022
DSA | $ | 304,015 |  |  | $ | 280,308 |
RMS | 552,515 |  |  | 682,592 |
| $ | 856,530 |  |  | $ | 962,900 |
Geographic Information The following represents revenue originating in entities physically located in the identified geographic area:
| Fiscal Year Ended September 30, 2023 |  | Fiscal Year Ended September 30, 2022
United States | $ | 482,630 |  |  | $ | 471,886 |
Netherlands | 54,088 |  |  | 42,361 |
Other | 35,707 |  |  | 33,409 |
| $ | 572,425 |  |  | $ | 547,656 |
Long-lived assets shown below include property and equipment, net. The following represents long-lived assets where they are physically located:
| As of September 30, |  | As of September 30,
| 2023 |  | 2022
United States | $ | 178,021 |  |  | $ | 173,417 |
Netherlands | 6,656 |  |  | 5,824 |
Other | 6,391 |  |  | 6,958 |
| $ | 191,068 |  |  | $ | 186,199 |

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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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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