Note 13 - Segments

The Company has two operating segments, and thus two reportable segments, which are the procurement, packaging, and distribution of pet health and wellness products in the Domestic markets (U.S. and Canada) and in the International markets (primarily Europe). The determination of the operating segments is based on the level at which the chief operating decision maker reviews discrete financial information to assess performance and make resource allocation decisions, which is done based on these two geographic areas.

Financial information relating to the Company’s operating segments for the years ended December 31:


$'s in 000's	Domestic		International		Consolidated
2017
Net Sales	$	261,526	$	5,161	$	266,687
Gross profit		48,997		2,197		51,194
General and administrative expenses		36,053		1,852		37,905
Operating income		12,944		345		13,289
Interest expense		—		—		(1,563)
Other income, net		—		—		201
Foreign currency loss, net		—		—		(140)
Identifiable assets	$	134,841	$	6,004	$	140,845
Depreciation expense	$	2,209	$	139	$	2,348
Amortization expense	$	797	$	255	$	1,052
Capital expenditures	$	4,011	$	120	$	4,131


($’s in 000’s)	Domestic		International		Consolidated
2016
Net Sales	$	195,698	$	4,464	$	200,162
Gross profit		30,683		1,864		32,547
General and administrative expenses		30,127		1,718		31,845
Operating income		556		146		702
Interest expense		—		—		(3,058)
Other income, net		—		—		666
Loss on debt extinguishment		—		—		(1,681)
Foreign currency loss, net		—		—		(24)
Identifiable assets	$	76,270	$	5,060	$	81,330
Depreciation expense	$	1,877	$	38	$	1,915
Amortization expense	$	798	$	269	$	1,067
Capital expenditures	$	1,892	$	149	$	2,041


($’s in 000’s)	Domestic		International		Consolidated
2015
Net Sales	$	202,092	$	3,595	$	205,687
Gross profit		37,582		1,576		39,158
General and administrative expenses		33,926		1,662		35,588
Operating income (loss)		3,656		(86)		3,570
Interest expense		—		—		(3,545)
Loss on debt extinguishment		—		—		(1,449)
Foreign currency gain, net		—		—		75
Identifiable assets	$	86,531	$	5,804	$	92,335
Depreciation expense	$	1,800	$	42	$	1,842
Amortization expense	$	330	$	405	$	735
Capital expenditures	$	1,479	$	71	$	1,550