Business Segments

12 Months Ended

Jun. 30, 2022

Business Segments

Business Segments

16. 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 a segment or segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the other segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, information 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 (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.

For the Year Ended June 30	2022		2021		2020
Net sales
Animal Health	$	607,055	$	545,716	$	526,904
Mineral Nutrition		259,512		220,560		214,412
Performance Products		75,694		67,074		59,038
Total segments	$	942,261	$	833,350	$	800,354
Depreciation and amortization
Animal Health	$	26,759	$	25,839	$	26,287
Mineral Nutrition		2,616		2,690		2,522
Performance Products		1,717		1,702		1,860
Total segments	$	31,092	$	30,231	$	30,669
Adjusted EBITDA
Animal Health	$	124,106	$	123,953	$	123,106
Mineral Nutrition		24,038		17,116		14,678
Performance Products		8,706		9,437		4,534
Total segments	$	156,850	$	150,506	$	142,318
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	72,327	$	66,468	$	55,512
Interest expense, net		11,875		12,880		12,856
Depreciation and amortization – Total segments		31,092		30,231		30,669
Depreciation and amortization – Corporate		1,613		1,654		1,672
Corporate costs		45,767		42,624		40,178
Gain on sale of investment		(1,203)		—		—
Acquisition-related cost of goods sold		316		—		280
Acquisition-related transaction costs		279		—		462
Acquisition-related other		—		—		(2,821)
Restructuring costs		—		—		425
Stock-based compensation		—		1,129		2,259
Foreign currency (gains) losses, net		(5,216)		(4,480)		826
Adjusted EBITDA – Total segments	$	156,850	$	150,506	$	142,318

As of June 30	2022		2021
Identifiable assets
Animal Health	$	654,862	$	595,315
Mineral Nutrition		87,379		67,338
Performance Products		39,490		36,847
Total segments		781,731		699,500
Corporate		149,968		141,825
Total	$	931,699	$	841,325

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.

The geographic location of property, plant and equipment, net was:

As of June 30	2022		2021
Property, plant and equipment, net
United States	$	57,605	$	57,892
Israel		63,971		58,648
Brazil		22,981		16,114
Ireland		15,596		17,315
Other		5,337		4,737
	$	165,490	$	154,706