Business Segments

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments

11.      Business Segments

The Animal Health segment manufactures and markets a broad range of products for food animals, including poultry, swine, cattle, dairy and aquaculture. The business includes net sales of medicated feed additives and other related products, nutritional specialty products and vaccines. The Mineral Nutrition segment manufactures and markets a broad range of trace mineral products for food animals. The Performance Products segment manufactures and markets a variety of products for use in the personal care, automotive, industrial chemical and chemical catalyst industries.

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 such costs are referred to as Corporate. We do not allocate such items to the principal segments because they are not used to evaluate their operating results or financial position.

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	2016			2015			2016			2015
Net sales
MFAs and other		$	77,475		$	85,569		$	160,894		$	171,090
Nutritional Specialties			29,247			24,222			55,551			46,592
Vaccines			16,951			11,713			31,729			23,956
Animal Health			123,673			121,504			248,174			241,638
Mineral Nutrition			56,699			58,853			108,291			113,322
Performance Products			11,226			11,416			23,120			23,933
Total segments		$	191,598		$	191,773		$	379,585		$	378,893
Depreciation and amortization
Animal Health		$	5,011		$	3,829		$	9,909		$	7,705
Mineral Nutrition			542			612			1,084			1,220
Performance Products			235			194			453			388
Total segments		$	5,788		$	4,635		$	11,446		$	9,313
Adjusted EBITDA
Animal Health		$	34,609		$	32,351		$	67,228		$	63,827
Mineral Nutrition			4,741			4,189			8,729			7,349
Performance Products			260			(8)			1,002			78
Total segments		$	39,610		$	36,532		$	76,959		$	71,254
Reconciliation of income before income taxes  to Adjusted EBITDA
Income before income taxes		$	19,304		$	16,097		$	36,876		$	39,589
Interest expense, net			3,872			3,967			7,779			7,786
Depreciation and amortization – Total segments			5,788			4,635			11,446			9,313
Depreciation and amortization –  Corporate			656			758			1,316			1,509
Corporate costs			8,416			8,098			15,940			15,113
Acquisition-related accrued  compensation			420			420			840			840
Acquisition-related transaction costs			—			—			1,274			—
Pension settlement cost			1,702			—			1,702			—
Foreign currency (gains) losses, net			(548)			2,557			(214)			(2,896)
Adjusted EBITDA – Total segments		$	39,610		$	36,532		$	76,959		$	71,254

As of	December 31,  2016			June 30, 2016
Identifiable assets
Animal Health		$	436,174		$	444,751
Mineral Nutrition			56,615			57,939
Performance Products			21,246			21,557
Total segments			514,035			524,247
Corporate			78,250			83,588
Total		$	592,285		$	607,835

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  $4,094 and $4,076 as of December 31, 2016, and June 30, 2016, respectively. The Performance Products segment includes an investment in an equity method investee of  $452 and $504 as of December 31, 2016, and June 30, 2016, respectively. Corporate assets include cash and cash equivalents, debt issuance costs related to the Revolver, income tax related assets and certain other assets.