Reportable Segments

3 Months Ended

Oct. 31, 2019

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.

In the first quarter of fiscal 2020 and as a result of the Hu-Friedy acquisition, we moved the financial reporting and management of our industrial biological and chemical indicator business to our Dental segment from our 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 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 45.7% and 43.9% of our Life Sciences segment net sales for the three months ended October 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. We are also a leading global manufacturer of instruments and instrument reprocessing workflow systems serving the dental industry. Three customers collectively accounted for approximately 43.5% and 50.2% of our Dental segment net sales for the three months ended October 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. Three customers accounted for approximately 46.1% and 41.4% of our Dialysis segment net sales for the three months ended October 31, 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 three months ended October 31, 2019 and 2018.

Information as to reportable segments is summarized below:



	Three Months Ended October 31,
Net sales	2019		2018
Medical	$	133,353	$	127,552
Life Sciences	49,141		51,842
Dental	67,243		38,131
Dialysis	7,509		8,064
Total net sales	$	257,246	$	225,589



	Three Months Ended October 31,
Income from operations	2019		2018
Medical	$	21,119	$	25,211
Life Sciences	7,135		5,572
Dental	5,004		6,684
Dialysis	1,622		1,384
	34,880		38,851
General corporate expenses	20,456		11,173
Total income from operations	$	14,424	$	27,678