Operating Segments

6 Months Ended

Jan. 31, 2022

Segment Reporting [Abstract]

Operating Segment Disclosure

OPERATING SEGMENTS

We have two operating segments: (1) Business to Business Products Group and (2) Retail and Wholesale 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; e-commerce retailers; 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. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2021.

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

	Business to Business Products Group				Retail and Wholesale Products Group
	For the Six Months Ended January 31,
Product	2022		2021		2022		2021
Cat Litter	$	9,327	$	7,612	$	89,141	$	81,879
Industrial and Sports	—		—		17,940		$	13,972
Agricultural and Horticultural	13,519		12,033		—		—
Bleaching Clay and Fluids Purification	29,540		25,406		1,036		$	941
Animal Health and Nutrition	9,167		8,754		—		—
Net Sales	$	61,553	$	53,805	108,117		$	96,792

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

	Business to Business Products Group				Retail and Wholesale Products Group
	For the Three Months Ended January 31,
Product	2022		2021		2022		2021
Cat Litter	$	4,691	$	3,736	$	45,246	$	41,085
Industrial and Sports	—		—		8,820		6,710
Agricultural and Horticultural	7,311		5,046		—		—
Bleaching Clay and Fluids Purification	15,035		12,765		520		422
Animal Health and Nutrition	5,587		4,736		—		—
Net Sales	$	32,624	$	26,283	$	54,586	$	48,217

We do not rely on any 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. 

	Assets
	January 31, 2022		July 31, 2021
	(in thousands)
Business to Business Products Group	$	73,041	$	69,023
Retail and Wholesale Products Group	111,332		103,268
Unallocated Assets	62,841		55,275
Total Assets	$	247,214	$	227,566

Net sales and operating income for each segment are provided below. The corporate expenses line includes 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 estimated annual incentive plan bonus accrual for employees dedicated to corporate operations. In addition, Income from our Business to Business and Retail and Wholesale Products as well as Corporate Expenses for the three and six months ended January 31, 2021 were adjusted for an immaterial correction of an error. See Note 1 of the Notes to the unaudited Condensed Consolidated Financial Statements.

	For the Six Months Ended January 31,
	Net Sales				Income
	2022		2021		2022		2021
	(in thousands)
Business to Business Products Group	$	61,553	$	53,805	$	14,336	$	14,713
Retail and Wholesale Products Group	$	108,117	96,792		$	1,000	6,728
Net Sales	$	169,670	$	150,597
Corporate Expenses					(12,973)		(12,020)
Income from Operations					2,363		9,421
Total Other Income, Net					717		491
Income before Income Taxes					3,080		9,912
Income Tax Expense					(524)		(1,675)
Net Income					2,556		8,237
Net Loss Attributable to Noncontrolling Interest					(31)		(46)
Net Income Attributable to Oil-Dri					$	2,587	$	8,283

	For the Three Months Ended January 31,
	Net Sales				Income
	2022		2021		2022		2021
	(in thousands)
Business to Business Products Group	$	32,624	$	26,283	$	7,590	$	7,113
Retail and Wholesale Products Group	54,586		48,217		926		3,178
Net Sales	$	87,210	$	74,500
Corporate Expenses					(6,598)		(6,047)
Income from Operations					1,918		4,244
Total Other Income, Net					452		913
Income before Income Taxes					2,370		5,157
Income Tax Expense					(409)		(869)
Net Income					1,961		4,288
Net Loss Attributable to Noncontrolling Interest					(41)		(11)
Net Income Attributable to Oil-Dri					$	2,002	$	4,299