v3.24.2
Segment financial information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment financial information
4.    Segment financial information
As described in note 1, effective January 1, 2024, we changed our operating model and reporting segment structure into two reportable business segments: Laboratory Solutions and Bioscience Production. Corporate costs are managed on a standalone basis, certain of which are allocated to our reportable segments.
In connection with this change, our chief operating decision maker changed the measure used to evaluate segment profitability from Adjusted EBITDA to Adjusted Operating Income. All disclosures relating to segment profitability, including those for comparative periods, have been revised as a result of this change.
The following table presents information by reportable segment:
(in millions)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net sales:
Laboratory Solutions$1,155.7 $1,193.8 $2,312.8 $2,396.8 
Bioscience Production547.1 550.1 1,069.8 1,127.4 
Total$1,702.8 $1,743.9 $3,382.6 $3,524.2 
Adjusted Operating Income:
Laboratory Solutions$150.9 $179.7 $299.1 $351.9 
Bioscience Production144.0 154.2 270.9 321.7 
Corporate(17.7)(15.0)(34.4)(31.6)
Total$277.2 $318.9 $535.6 $642.0 
The amounts above exclude inter-segment activity because it is not material. All of the net sales for each segment are from external customers.
The following table presents the reconciliation of net income (loss), the nearest measurement under GAAP, to Adjusted Operating Income:
(in millions)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net income (loss)
$92.9 $(7.3)$153.3 $114.2 
Interest expense, net60.9 73.4 125.2 147.1 
Income tax expense
21.7 6.0 41.9 40.3 
Loss on extinguishment of debt1.9 1.6 4.4 3.9 
Other income, net
(1.6)(2.0)(2.7)(2.6)
Operating income
175.8 71.7 322.1 302.9 
Amortization74.9 78.9 150.2 157.3 
Integration-related expenses1
— (0.6)— 8.1 
Restructuring and severance charges2
9.7 7.2 32.9 11.9 
Transformation expenses3
16.2 — 29.5 — 
Other4
0.6 0.9 0.9 1.0 
Impairment charges5
— 160.8 — 160.8 
Adjusted Operating Income$277.2 $318.9 $535.6 $642.0 
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1.Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition.
2.Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. The expenses recognized in 2024 represent costs incurred to achieve the Company’s publicly-announced cost transformation initiative.
3.Represents incremental expenses directly associated with the Company’s publicly-announced cost transformation initiative, primarily related to the cost of external advisors.
4.Represents other stock-based compensation expense (benefit) and charges and legal costs in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results.
5.As described in note 1.
The following table presents net sales by product category:
(in millions)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Proprietary$914.0 $923.9 $1,797.5 $1,876.1 
Third-party788.8 820.0 1,585.1 1,648.1 
Total$1,702.8 $1,743.9 $3,382.6 $3,524.2