Reportable Segments

In accordance with ASC Topic 280, “Segment Reporting,” (“ASC 280”), we have determined our reportable business segments based upon an assessment of product types, organizational structure, customers and internally prepared financial statements. The primary factors used by us in analyzing segment performance are net sales and income from operations.

During the first quarter of fiscal 2019, we changed the names of our reportable segments to better align with our key customers and the markets we serve. As a result of this change, our industrial biological and chemical indicator business has moved from the Dental segment to the Life Sciences segment. Prior year segment disclosures have been recast to conform to the current year presentation.

Our reportable segments are as follows:

Medical: designs, develops, manufactures, sells and installs a comprehensive offering of products and services comprising a complete circle of infection prevention solutions. Our products include endoscope reprocessing and endoscopy procedure products.

Life Sciences: designs, develops, manufactures, sells, and installs water purification systems for medical, pharmaceutical and other bacteria controlled applications. We also provide filtration/separation and disinfectant technologies to the medical and life science markets through a worldwide distributor network. Two customers collectively accounted for approximately 42.5% and 51.3% of our Life Sciences segment net sales for the six months ended January 31, 2019 and 2018, respectively.

Dental: designs, manufactures, sells, supplies and distributes a broad selection of infection prevention healthcare products, the majority of which are single-use products used by dental practitioners. Three customers collectively accounted for approximately 47.9% and 48.3% of our Dental segment net sales for the six months ended January 31, 2019 and 2018, respectively.

Dialysis: designs, develops, manufactures, sells and services reprocessing systems and sterilants for dialyzers (a device serving as an artificial kidney), as well as dialysate concentrates and supplies utilized for renal dialysis. Two customers accounted for approximately 20.6% and 38.7% of our Dialysis segment net sales for the six months ended January 31, 2019 and 2018, respectively. These customers are the same two customers noted above under our Life Sciences segment.

None of our customers accounted for 10% or more of our consolidated net sales for the six months ended January 31, 2019 and 2018.

Information as to reportable segments is summarized below:



	Three Months Ended January 31,				Six Months Ended January 31,
Net sales	2019		2018		2019		2018
Medical	$	128,580	$	116,665	$	256,132	$	229,050
Life Sciences	51,869		52,337		105,214		107,107
Dental	35,933		36,090		72,561		73,767
Dialysis	8,156		7,942		16,220		15,876
Total net sales	$	224,538	$	213,034	$	450,127	$	425,800



	Three Months Ended January 31,				Six Months Ended January 31,
Income from operations	2019		2018		2019		2018
Medical	$	25,525	$	24,463	$	50,736	$	44,147
Life Sciences	7,323		8,583		13,654		18,958
Dental	4,888		6,558		10,813		15,233
Dialysis	1,193		1,918		2,577		4,017
	38,929		41,522		77,780		82,355
General corporate expenses	12,733		9,040		23,906		18,239
Total income from operations	$	26,196	$	32,482	$	53,874	$	64,116