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SEGMENT REPORTING
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
On April 1, 2020, Heska completed the acquisition of scil. Following this acquisition, we restructured our operating segments based on how the Chief Operating Decision Maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance. The CODM changed how he assesses performance and allocates resources based on geographic regions in order to better align with the global operations of the Company. Based on this change, the Company determined it has two reportable segments and revised prior comparative periods to conform to the current period segment presentation. The Company’s two segments are North America and International.
The North America segment is comprised of our operations in the United States, Canada and Mexico and the International segment is comprised geographies outside of North America, which are our operations primarily in Australia, France, Germany, Italy, Malaysia, Spain and Switzerland. Certain expenses incurred at the Company’s headquarters located in the North America segment are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. The Company's sales are determined by the country of origin where the sale occurred. For a description of Heska's previous operating segments, refer to Note 17 to the consolidated financial statements of Heska's 2019 Annual Report on Form 10-K.
Our CODM continues to evaluate segment performance and allocate resources based on Revenue, Cost of Revenue, Gross Profit, Gross Margin and Operating Income. The CODM does not evaluate operating segments using asset information; however, we have included total asset information by segment below as there was a material change in total assets by segment as of June 30, 2020 due to the acquisition of scil.
Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands):
Three Months Ended June 30, 2020North AmericaInternationalTotal
Total revenue$28,982  $16,730  $45,712  
Cost of revenue16,222  11,625  $27,847  
Gross profit12,760  5,105  $17,865  
Gross margin44.0 %30.5 %39.1 %
Operating loss(3,067) (1,387) $(4,454) 
Three Months Ended June 30, 2019North AmericaInternationalTotal
Total revenue$26,396  $1,750  $28,146  
Cost of revenue14,446  1,288  $15,734  
Gross profit11,950  462  $12,412  
Gross margin45.3 %26.4 %44.1 %
Operating loss(265) (301) $(566) 

Six Months Ended June 30, 2020North AmericaInternationalTotal
Total revenue$56,631  $19,735  $76,366  
Cost of revenue31,368  13,685  $45,053  
Gross profit25,263  6,050  $31,313  
Gross margin44.6 %30.7 %41.0 %
Operating loss(7,161) (1,912) $(9,073) 

Six Months Ended June 30, 2019North AmericaInternationalTotal
Total revenue$54,888  $2,769  $57,657  
Cost of revenue30,634  2,068  $32,702  
Gross profit24,254  701  $24,955  
Gross margin44.2 %25.3 %43.3 %
Operating loss(158) (483) $(641) 

Asset information by reportable segment as of June 30, 2020 is as follows (in thousands):
As of June 30, 2020North AmericaInternationalTotal
Total assets$119,475  $257,424  $376,899  

Asset information by reportable segment as of December 31, 2019 is as follows (in thousands):
As of December 31, 2019North AmericaInternationalTotal
Total assets$219,402  $25,022  $244,424