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 40.9% and 50.1% of our Life Sciences segment net sales for the nine months ended April 30, 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 45.7% and 47.7% of our Dental segment net sales for the nine months ended April 30, 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. Three customers accounted for approximately 45.6% and 39.0% of our Dialysis segment net sales for the nine months ended April 30, 2019 and 2018, respectively. These customers include one of the top 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 nine months ended April 30, 2019 and 2018.

Information as to reportable segments is summarized below:



	Three Months Ended April 30,				Nine Months Ended April 30,
Net sales	2019		2018		2019		2018
Medical	$	130,722	$	118,396	$	386,854	$	347,446
Life Sciences	46,478		54,020		151,692		161,127
Dental	43,628		36,832		116,189		110,599
Dialysis	7,724		8,020		23,944		23,896
Total net sales	$	228,552	$	217,268	$	678,679	$	643,068



	Three Months Ended April 30,				Nine Months Ended April 30,
Income from operations	2019		2018		2019		2018
Medical	$	24,302	$	20,515	$	75,038	$	64,662
Life Sciences	4,842		9,018		18,496		27,976
Dental	4,758		7,025		15,571		22,258
Dialysis	1,151		1,778		3,728		5,795
	35,053		38,336		112,833		120,691
General corporate expenses	20,241		11,269		44,147		29,508
Total income from operations	$	14,812	$	27,067	$	68,686	$	91,183