Business Segments

9 Months Ended

Mar. 31, 2017

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						Nine Months
For the Periods Ended March 31	2017			2016			2017			2016
Net sales
MFAs and other		$	76,354		$	82,445		$	237,248		$	253,535
Nutritional Specialties			27,613			22,792			83,164			69,384
Vaccines			17,009			13,091			48,738			37,047
Animal Health			120,976			118,328			369,150			359,966
Mineral Nutrition			57,169			53,029			165,460			166,351
Performance Products			11,716			12,104			34,836			36,037
Total segments		$	189,861		$	183,461		$	569,446		$	562,354

	Three Months						Nine Months
For the Periods Ended March 31	2017			2016			2017			2016
Depreciation and amortization
Animal Health		$	5,311		$	4,246		$	15,220		$	11,951
Mineral Nutrition			611			656			1,695			1,876
Performance Products			255			196			708			584
Total segments		$	6,177		$	5,098		$	17,623		$	14,411
Adjusted EBITDA
Animal Health		$	31,806		$	32,151		$	99,034		$	95,978
Mineral Nutrition			4,343			4,012			13,072			11,361
Performance Products			446			490			1,448			568
Total segments		$	36,595		$	36,653		$	113,554		$	107,907
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	26,448		$	19,149		$	63,324		$	58,738
Interest expense, net			3,929			4,265			11,708			12,051
Depreciation and amortization – Total segments			6,177			5,098			17,623			14,411
Depreciation and amortization – Corporate			665			758			1,981			2,267
Corporate costs			6,859			6,987			22,799			22,100
Acquisition-related cost of goods sold			—			1,601			—			1,601
Acquisition-related accrued compensation			420			420			1,260			1,260
Acquisition-related transaction costs			—			618			1,274			618
Pension settlement cost			—			—			1,702			—
Gain on insurance settlement			(7,500)			—			(7,500)			—
Foreign currency (gains) losses, net			(403)			(2,243)			(617)			(5,139)
Adjusted EBITDA – Total segments		$	36,595		$	36,653		$	113,554		$	107,907

As of	March 31, 2017			June 30, 2016
Identifiable assets
Animal Health		$	435,881		$	444,751
Mineral Nutrition			57,112			57,939
Performance Products			21,068			21,557
Total segments			514,061			524,247
Corporate			88,217			83,588
Total		$	602,278		$	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  $4,049 and $4,076 as of March 31, 2017, and June 30, 2016, respectively. The Performance Products segment includes an investment in an equity method investee of  $484 and $504 as of March 31, 2017, and June 30, 2016, respectively. Corporate assets include cash and cash equivalents, certain debt issuance costs related to the Credit Facilities, income tax related assets and certain other assets.