Business Segments

3 Months Ended

Sep. 30, 2020

Business Segments

Business Segments

10. Business Segments

We evaluate performance and allocate resources, based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

	Three Months
For the Periods Ended September 30	2020		2019
Net sales
Animal Health	$	128,369	$	121,850
Mineral Nutrition		51,440		52,649
Performance Products		15,385		15,221
Total segments	$	195,194	$	189,720
Depreciation and amortization
Animal Health	$	6,521	$	6,384
Mineral Nutrition		649		613
Performance Products		445		377
Total segments	$	7,615	$	7,374
Adjusted EBITDA
Animal Health	$	30,101	$	25,061
Mineral Nutrition		3,047		3,475
Performance Products		1,972		852
Total segments	$	35,120	$	29,388
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	16,509	$	3,572
Interest expense, net		2,810		3,354
Depreciation and amortization – Total segments		7,615		7,374
Depreciation and amortization – Corporate		421		407
Corporate costs		10,831		9,728
Restructuring costs		—		425
Stock-based compensation		565		565
Acquisition-related cost of goods sold		—		280
Acquisition-related transaction costs		—		462
Foreign currency (gains) losses, net		(3,631)		3,221
Adjusted EBITDA – Total segments	$	35,120	$	29,388

	September 30,		June 30,
	2020		2020
Identifiable assets
Animal Health	$	556,895	$	560,663
Mineral Nutrition		72,295		65,686
Performance Products		33,955		31,016
Total segments		663,145		657,365
Corporate		126,409		126,735
Total	$	789,554	$	784,100

The Animal Health segment includes all goodwill of the Company. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax-related assets and certain other assets.