OPERATING SEGMENTS Level 1 (Notes)

12 Months Ended

Jul. 31, 2020

OPERATING SEGMENTS

We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include:

processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products.

Net sales for our principal products by segment are as follows (in thousands):



	Business to Business Products Group				Retail and Wholesale Products Group
	Year Ended July 31,
Product	2020		2019		2020		2019
Cat Litter	$	14,528	$	13,764	$	147,503	$	135,489
Industrial and Sports	—		—		29,035		33,341
Agricultural and Horticultural	21,886		24,311		—		—
Bleaching Clay and Fluids Purification	50,117		51,905		2,429		2,318
Animal Health and Nutrition	17,729		15,897		—		—
Net Sales	$	104,260	$	105,877	$	178,967	$	171,148

Net sales and operating income for each segment are provided below. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements.

We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance.

The corporate expenses line in the table below represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. Other income in fiscal year 2019 included net proceeds upon resolution of legal proceedings. The amount received under a confidential agreement resolving these legal proceedings was material to our financial results for the period. Other operating income in fiscal year 2020 relates to revenue earned from a license arrangement of our intellectual property. See Note 1 of the Notes to the Consolidated Financial Statements.



					July 31,
					Assets
					2020			2019
					(in thousands)
Business to Business Products					$	72,987		$	65,282
Retail and Wholesale Products					95,838			94,809
Unallocated assets					67,057			45,136
Total Assets					$	235,882		$	205,227

	Year Ended July 31,
	Net Sales				Income
	2020		2019		2020			2019
	(in thousands)
Business to Business Products	$	104,260	$	105,877	$	31,218		$	31,388
Retail and Wholesale Products	178,967		171,148		15,859			8,683
Net Sales	$	283,227	$	277,025
Other Operating Income					13,000			—
Corporate Expenses					(35,250		)	(29,659		)
Income from Operations					24,827			10,412
Total Other (Expense) Income, Net					(1,807		)	4,136
Income Before Income Taxes					23,020			14,548
Income Tax Expense					(4,280		)	(1,933		)
Net Income					$	18,740		$	12,615
Net (Loss) Income Attributable to Noncontrolling Interest					$	(160	)	$	4
Net Income Attributable to Oil-Dri					$	18,900		$	12,611

The following is a summary by fiscal year of financial information by geographic region (in thousands):



	2020			2019
Sales to unaffiliated customers by:
Domestic operations	$	268,007		$	263,469
Foreign subsidiaries	$	15,220		$	13,556
Sales or transfers between geographic areas:
Domestic operations	$	6,566		$	5,097
Income before income taxes:
Domestic operations	$	24,494		$	14,280
Foreign subsidiaries	$	(1,474	)	$	268
Net Income (Loss) attributable to Oil-Dri:
Domestic operations	$	20,208		$	12,456
Foreign subsidiaries	$	(1,308	)	$	155
Identifiable assets:
Domestic operations	$	223,296		$	195,032
Foreign subsidiaries	$	12,586		$	10,195

Included within identifiable assets for our foreign subsidiaries is cash held at foreign banks of $3,038,000 as of July 31, 2020.

Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below:



	2020	2019
Net sales for the years ended July 31	19%	20%
Net accounts receivable as of July 31	18%	26%

There are no other customers with sales equal to or greater than 10% of our total sales.