OSI SYSTEMS INC Segments Disclosure
14.SEGMENT INFORMATION
We operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division) and (c) medical monitoring systems (Healthcare division). Factors used to identify our reportable segments primarily reflect our organizational and management structure around differences in products and industry markets. We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances and legal, audit and other professional service fees not allocated to industry segments. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to external OEM customers, as well as to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies. We disclose segment income (loss) from operations as our measure of segment profit/loss, reconciled to consolidated income (loss) from operations. The measure of segment income (loss) from operations excludes restructuring and other charges presented below which are presented to reconcile to consolidated income from operations. Segment assets represent total current and noncurrent assets for each reportable segment. Business segment disclosures consider information used by/provided to our chief operating decision maker (“CODM”). Our Chief Executive Officer serves as the CODM. The CODM uses segment assets and segment income (loss) from operations, as well as the expenses within each segment including cost of sales, selling, general and administrative expenses and research and development expenses, to allocate resources to segments in the budgeting and forecasting process along with periodic ongoing reviews of results and overall activity in the markets where each segment operates.
The following tables present our results of operations and identifiable assets by our three industry segments, along with amounts for Corporate/Eliminations, which are reconciled to consolidated amounts (in thousands):
Fiscal 2023 | |||||||||||||||
Optoelectronics | |||||||||||||||
and | |||||||||||||||
Security | Manufacturing | Healthcare | Corporate/ | ||||||||||||
| Division |
| Division |
| Division |
| Eliminations |
| Consolidated | ||||||
Revenues: |
|
|
|
|
| ||||||||||
External customer revenue | $ | 760,291 | $ | 327,648 | $ | 190,488 | $ | — | $ | 1,278,427 | |||||
Revenue between product segments |
| — | 59,783 | — | (59,783) | — | |||||||||
Total revenues | 760,291 | 387,431 | 190,488 | (59,783) | 1,278,427 | ||||||||||
Cost of goods sold | 511,840 | 299,457 | 97,030 | (60,410) | 847,917 | ||||||||||
Selling, general and administrative expenses | 94,378 | 33,325 | 62,461 | 38,149 | 228,313 | ||||||||||
Research and development expenses | 37,335 | 5,462 | 16,555 | — | 59,352 | ||||||||||
Segment income (loss) from operations | 116,738 | 49,187 | 14,442 | (37,522) | 142,845 | ||||||||||
Restructuring and other charges | 1,715 | 2,507 | 3,077 | 267 | 7,566 | ||||||||||
Income (loss) from operations | $ | 115,023 | $ | 46,680 | $ | 11,365 | $ | (37,789) | $ | 135,279 | |||||
Segment assets | $ | 948,126 | $ | 310,930 | $ | 245,856 | $ | 50,774 | $ | 1,555,686 | |||||
Capital expenditures | $ | 3,689 | $ | 7,390 | $ | 2,726 | $ | 2,006 | $ | 15,811 | |||||
Depreciation and amortization | $ | 23,504 | $ | 7,582 | $ | 5,757 | $ | 1,670 | $ | 38,513 | |||||
Fiscal 2024 | |||||||||||||||
Optoelectronics | |||||||||||||||
and | |||||||||||||||
Security | Manufacturing | Healthcare | Corporate/ | ||||||||||||
| Division |
| Division |
| Division |
| Eliminations |
| Consolidated | ||||||
Revenues: |
|
|
|
|
| ||||||||||
External customer revenue | $ | 1,043,073 | $ | 324,250 | $ | 171,435 | $ | — | $ | 1,538,758 | |||||
Revenue between product segments |
| — |
| 60,018 |
| — |
| (60,018) |
| — | |||||
Total revenues | 1,043,073 | 384,268 | 171,435 | (60,018) | 1,538,758 | ||||||||||
Cost of goods sold | 681,531 | 299,147 | 86,917 | (59,295) | 1,008,300 | ||||||||||
Selling, general and administrative expenses | 134,401 | 33,608 | 60,767 | 40,955 | 269,731 | ||||||||||
Research and development expenses | 43,196 | 5,151 | 16,928 | — | 65,275 | ||||||||||
Segment income (loss) from operations | 183,945 | 46,362 | 6,823 | (41,678) | 195,452 | ||||||||||
Restructuring and other charges | 675 | 3,548 | 810 | 1,358 | 6,391 | ||||||||||
Income (loss) from operations | $ | 183,270 | $ | 42,814 | $ | 6,013 | $ | (43,036) | $ | 189,061 | |||||
Segment assets | $ | 1,333,259 | $ | 288,629 | $ | 255,093 | $ | 59,027 | $ | 1,936,008 | |||||
Capital expenditures | $ | 11,997 | $ | 4,007 | $ | 3,219 | $ | 2,879 | $ | 22,102 | |||||
Depreciation and amortization | $ | 25,831 | $ | 9,040 | $ | 5,794 | $ | 1,544 | $ | 42,209 | |||||
Fiscal 2025 | |||||||||||||||
Optoelectronics | |||||||||||||||
and | |||||||||||||||
Security | Manufacturing | Healthcare | Corporate/ | ||||||||||||
| Division |
| Division |
| Division |
| Eliminations |
| Consolidated | ||||||
Revenues: |
|
|
|
|
| ||||||||||
External customer revenue | $ | 1,196,180 | $ | 348,624 | $ | 168,362 | $ | — | $ | 1,713,166 | |||||
Revenue between product segments |
| — |
| 63,441 |
| — |
| (63,441) |
| — | |||||
Total revenues | 1,196,180 | 412,065 | 168,362 | (63,441) | 1,713,166 | ||||||||||
Cost of goods sold | 780,378 | 321,397 | 86,534 | (62,325) | 1,125,984 | ||||||||||
Selling, general and administrative expenses | 157,873 | 33,409 | 59,871 | 39,726 | 290,879 | ||||||||||
Research and development expenses | 51,095 | 5,100 | 17,249 | — | 73,444 | ||||||||||
Segment income (loss) from operations | 206,834 | 52,159 | 4,708 | (40,842) | 222,859 | ||||||||||
Restructuring and other charges | 1,882 | 619 | 2,246 | 588 | 5,335 | ||||||||||
Income (loss) from operations | $ | 204,952 | $ | 51,540 | $ | 2,462 | $ | (41,430) | $ | 217,524 | |||||
Segment assets | $ | 1,608,985 | $ | 300,405 | $ | 270,428 | $ | 61,439 | $ | 2,241,257 | |||||
Capital expenditures | $ | 13,933 | $ | 5,000 | $ | 1,448 | $ | 3,451 | $ | 23,832 | |||||
Depreciation and amortization | $ | 29,579 | $ | 7,176 | $ | 5,163 | $ | 1,662 | $ | 43,580 | |||||
The following tables present the revenues and identifiable assets by geographical area (in thousands):
Fiscal 2023 | |||||||||||||||
External | Intersegment | Total | Long-lived | Long-lived | |||||||||||
| revenues |
| revenues |
| Consolidated |
| tangible assets |
| assets | ||||||
Geographic region: |
|
|
|
|
| ||||||||||
United States | $ | 653,127 | $ | 17,461 | $ | 670,588 | $ | 126,388 | $ | 534,417 | |||||
Mexico |
| 23,467 |
| — |
| 23,467 |
| 609 |
| 609 | |||||
Other Americas |
| 63,416 |
| — |
| 63,416 |
| 8,050 |
| 25,844 | |||||
Total Americas |
| 740,010 |
| 17,461 |
| 757,471 |
| 135,047 | 560,870 | ||||||
United Kingdom |
| 280,268 |
| 5,835 |
| 286,103 |
| 27,952 | 87,289 | ||||||
Other Europe, Middle East and Africa |
| 44,498 |
| — |
| 44,498 |
| 4,233 | 6,198 | ||||||
Total EMEA |
| 324,766 |
| 5,835 |
| 330,601 |
| 32,185 | 93,487 | ||||||
Asia-Pacific |
| 213,651 |
| 36,487 |
| 250,138 |
| 21,478 | 24,715 | ||||||
Eliminations |
| — |
| (59,783) |
| (59,783) |
| — |
| — | |||||
Total | $ | 1,278,427 | $ | — | $ | 1,278,427 | $ | 188,710 | $ | 679,072 | |||||
Fiscal 2024 | |||||||||||||||
External | Intersegment | Total | Long-lived | Long-lived | |||||||||||
| revenues |
| revenues |
| Consolidated |
| tangible assets |
| assets | ||||||
Geographic region: |
|
|
|
|
| ||||||||||
United States | $ | 527,120 | $ | 23,316 | $ | 550,436 | $ | 127,682 | $ | 535,225 | |||||
Mexico |
| 423,185 | — | 423,185 | 3,312 | 4,407 | |||||||||
Other Americas |
| 61,583 | — | 61,583 | 6,600 | 22,465 | |||||||||
Total Americas |
| 1,011,888 | 23,316 | 1,035,204 | 137,594 | 562,097 | |||||||||
United Kingdom |
| 234,858 | 11,083 | 245,941 | 26,506 | 82,690 | |||||||||
Other Europe, Middle East and Africa |
| 49,972 | — | 49,972 | 4,256 | 11,381 | |||||||||
Total EMEA |
| 284,830 | 11,083 | 295,913 | 30,762 | 94,071 | |||||||||
Asia-Pacific |
| 242,040 | 25,619 | 267,659 | 17,524 | 20,721 | |||||||||
Eliminations |
| — | (60,018) | (60,018) | — | — | |||||||||
Total | $ | 1,538,758 | $ | — | $ | 1,538,758 | $ | 185,880 | $ | 676,889 | |||||
Fiscal 2025 | |||||||||||||||
External | Intersegment | Total | Long-lived | Long-lived | |||||||||||
| revenues |
| revenues |
| Consolidated |
| tangible assets |
| assets | ||||||
Geographic region: |
|
|
|
|
| ||||||||||
United States | $ | 563,037 | $ | 26,562 | $ | 589,599 | $ | 128,061 | $ | 539,052 | |||||
Mexico |
| 276,324 | — | 276,324 | 3,276 | 4,262 | |||||||||
Other Americas |
| 155,075 | 6 | 155,081 | 22,924 | 112,108 | |||||||||
Total Americas |
| 994,436 | 26,568 | 1,021,004 | 154,261 | 655,422 | |||||||||
United Kingdom |
| 372,959 | 9,475 | 382,434 | 28,626 | 88,101 | |||||||||
Other Europe, Middle East and Africa |
| 50,030 | — | 50,030 | 3,561 | 10,449 | |||||||||
Total EMEA |
| 422,989 | 9,475 | 432,464 | 32,187 | 98,550 | |||||||||
Asia-Pacific |
| 295,741 | 27,398 | 323,139 | 15,040 | 18,199 | |||||||||
Eliminations |
| — | (63,441) | (63,441) | — | — | |||||||||
Total | $ | 1,713,166 | $ | — | $ | 1,713,166 | $ | 201,488 | $ | 772,171 | |||||
Pursuant to ASC 280 Segment Reporting, external revenues are attributed to individual countries based upon the location of our selling entity.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 25, 2025 | Showing above |
| 2024 | Aug 29, 2024 | |
| 2023 | Aug 29, 2023 | |
| 2022 | Aug 19, 2022 | |
| 2021 | Aug 23, 2021 | |
| 2020 | Aug 21, 2020 | |
| 2019 | Aug 27, 2019 | |
| 2018 | Aug 28, 2018 | |
| 2017 | Sep 7, 2017 | |
| 2016 | Aug 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.