Business Segments

6 Months Ended

Dec. 31, 2018

11. 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. Corporate assets include cash and cash equivalents, certain debt issue costs, income tax related assets and certain other assets.

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						Six Months
For the Periods Ended December 31	2018			2017			2018			2017
Net sales
Animal Health		$	139,562		$	132,845		$	270,751		$	261,686
Mineral Nutrition			62,319			59,616			117,157			111,689
Performance Products			16,342			13,415			30,468			25,913
Total segments		$	218,223		$	205,876		$	418,376		$	399,288
Depreciation and amortization
Animal Health		$	5,493		$	5,265		$	10,849		$	10,519
Mineral Nutrition			616			584			1,213			1,169
Performance Products			279			259			552			505
Total segments		$	6,388		$	6,108		$	12,614		$	12,193
Adjusted EBITDA
Animal Health		$	35,925		$	35,036		$	71,641		$	68,778
Mineral Nutrition			4,084			5,614			6,647			9,330
Performance Products			1,514			264			2,230			512
Total segments		$	41,523		$	40,914		$	80,518		$	78,620

	Three Months						Six Months
For the Periods Ended December 31	2018			2017			2018			2017
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	20,074		$	21,211		$	42,779		$	40,155
Interest expense, net			3,015			3,050			5,798			6,168
Depreciation and amortization – Total segments			6,388			6,108			12,614			12,193
Depreciation and amortization – Corporate			453			523			918			1,082
Corporate costs			9,918			8,436			18,804			16,025
Stock-based compensation			564			—			1,129			—
Acquisition-related cost of goods sold			—			1,422			—			1,671
Acquisition-related accrued compensation			—			487			—			924
Acquisition-related transaction costs			—			—			—			400
Other, net			(1,506)			—			(1,506)			—
Foreign currency (gains) losses, net			2,617			(323)			(18)			2
Adjusted EBITDA – Total segments		$	41,523		$	40,914		$	80,518		$	78,620

As of	December 31, 2018			June 30, 2018
Identifiable assets
Animal Health		$	472,534		$	455,704
Mineral Nutrition			77,351			69,779
Performance Products			32,430			24,040
Total segments			582,315			549,523
Corporate			114,977			122,156
Total		$	697,292		$	671,679

The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,141 and $3,432 as of December 31, 2018 and June 30, 2018, respectively. The Performance Products segment includes an investment in an equity method investee of $629 and $437 as of December 31, 2018 and June 30, 2018, respectively. Corporate assets include cash and cash equivalents, short-term investments, certain debt issuance costs, income tax related assets and certain other assets.