Segment Information and Geographic Data

6 Months Ended

Nov. 30, 2022

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. All new products from the merger of the 3M FSD, effective September 1, 2022, are reported through the Food Safety segment. 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 rodenticides, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. 

Our international operations in the United Kingdom, Mexico, Brazil, China and India 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, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing 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.

The accounting policies of each of the segments are the same as those described in Note 1.

Segment information follows:

(in thousands)	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
As of and for the three months ended November 30, 2022
Product revenues to external customers	$	154,223	$	49,094	$	—		$	203,317
Service revenues to external customers		7,120		19,596		—			26,716
Total revenues to external customers	$	161,343	$	68,690	$	—		$	230,033
Operating income (loss)	$	21,446	$	12,806	$	(41,908	)	$	(7,656	)
Total assets	$	3,955,488	$	329,177	$	278,577		$	4,563,242
As of and for the three months ended November 30, 2021
Product revenues to external customers	$	60,112	$	45,999	$	—		$	106,111
Service revenues to external customers		7,020		17,386		—			24,406
Total revenues to external customers	$	67,132	$	63,385	$	—		$	130,517
Operating income (loss)	$	10,894	$	12,701	$	(11,126	)	$	12,469
Total assets	$	298,437	$	278,994	$	390,503		$	967,934

(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.

(in thousands)	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
As of and for the six months ended November 30, 2022
Product revenues to external customers	$	212,013	$	98,096	$	—		$	310,109
Service revenues to external customers		13,973		38,300		—			52,273
Total revenues to external customers	$	225,986	$	136,396	$	—		$	362,382
Operating income (loss)	$	30,042	$	24,687	$	(56,323	)	$	(1,594	)
As of and for the six months ended November 30, 2021
Product revenues to external customers	$	116,057	$	94,067	$	—		$	210,124
Service revenues to external customers		13,797		34,901		—			48,698
Total revenues to external customers	$	129,854	$	128,968	$	—		$	258,822
Operating income (loss)	$	21,026	$	25,463	$	(12,275	)	$	34,214

(1) Includes elimination of intersegment transactions.

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

	Three months ended November 30,				Six months ended November 30,
(in thousands)	2022		2021		2022		2021
Domestic	$	114,413	$	76,378	$	195,055	$	154,156
International		115,620		54,139		167,327		104,666
Total revenue	$	230,033	$	130,517		362,382		258,822