Segment Information and Geographic Data

9 Months Ended

Feb. 29, 2024

Segment Information and Geographic Data

6. SEGMENT INFORMATION AND GEOGRAPHIC DATA

We have two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits, culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors. This segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodent control products, disinfectants and insect control products to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities.

Many of our international operations originally focused on the Company’s food safety products, and each of these units reports through the Food Safety segment. In recent years, these operations have expanded to offer our complete line of products and services, including those usually associated with the Animal Safety segment, such as cleaners, disinfectants, rodent control products, insect control products, veterinary instruments and genomics services. These additional products and services are managed and directed by existing Food Safety management and are reported through the Food Safety segment.

Neogen’s operation in Australia originally focused on providing genomics services and sales of animal safety products and reports through the Animal Safety segment. With the acquisition of Cell BioSciences in February 2020, this operation expanded to offer our complete line of products and services, including those usually associated with the Food Safety segment. These additional products are managed and directed by existing management at Neogen Australasia and report through the Animal Safety segment. While Neogen was operating under a distribution services agreement with 3M, all sales of FSD products were reported through the Food Safety segment. Since the review of FSD sales occurs on a global scale, sales of these products occurring in Australia and New Zealand will continue to report through the Food Safety segment, despite now occurring at Neogen Australasia.

The accounting policies of each of the segments are the same as those described in Note 1, "Description of Business and Basis of Presentation."

Segment information follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
As of and during the three months ended February 29, 2024
Product revenues to external customers	$	149,709	$	52,469	$	—		$	202,178
Service revenues to external customers		8,045		18,589		—			26,634
Total revenues to external customers	$	157,754	$	71,058	$	—		$	228,812
Operating income (loss)	$	15,915	$	14,781	$	(18,673	)	$	12,023
Total assets	$	4,071,831	$	344,205	$	166,456		$	4,582,492
As of and during the three months ended February 28, 2023
Product revenues to external customers	$	144,843	$	45,845	$	—		$	190,688
Service revenues to external customers		6,699		20,868		—			27,567
Total revenues to external customers	$	151,542	$	66,713	$	—		$	218,255
Operating income (loss)	$	11,011	$	10,752	$	(6,079	)	$	15,684
Total assets	$	3,975,921	$	349,628	$	183,215		$	4,508,764

(1)Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, current and deferred tax accounts and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
As of and during the nine months ended February 29, 2024
Product revenues to external customers	$	464,973	$	145,475	$	—		$	610,448
Service revenues to external customers		23,462		53,518		—			76,980
Total revenues to external customers	$	488,435	$	198,993	$	—		$	687,428
Operating income (loss)	$	62,485	$	30,876	$	(47,738	)	$	45,623
As of and during the nine months ended February 28, 2023
Product revenues to external customers	$	356,856	$	143,941	$	—		$	500,797
Service revenues to external customers		20,672		59,168		—			79,840
Total revenues to external customers		377,528		203,109		-			580,637
Operating income (loss)		41,053		35,439		(62,402	)		14,090

(1)Includes the elimination of intersegment transactions.

The following table presents the Company’s revenue disaggregated by geographic location:

	Three Months Ended February 29/28,				Nine Months Ended February 29/28,
	2024		2023		2024		2023
Domestic	$	124,226	$	109,919	$	348,848	$	304,974
International		104,586		108,336		338,580		275,663
Total revenue	$	228,812	$	218,255	$	687,428	$	580,637