OPERATING SEGMENTS Level 1 (Notes)

12 Months Ended

Jul. 31, 2022

OPERATING SEGMENTS [Abstract]

Operating Segments

OPERATING SEGMENTS

As a result of a change in management organization during fiscal year 2022 and as part of our routine assessments of our segments, our wholly owned subsidiary located in the United Kingdom is now included in our Business to Business Products Group and our co-packaged coarse cat litter is now included in the Retail and Wholesale Products Group. Prior year net sales and operating income have also been reclassified to reflect these changes. The organization change was intended to better serve our customers and the segment information presented reflects the information regularly reviewed by our chief operating decision maker.

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, sports field product users and marketers of consumer products. 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; and distributors of animal health and nutrition 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	2022		2021		2022		2021
Cat Litter	$	—	$	—	$	196,278	$	176,119
Industrial and Sports	—		—		38,932		31,724
Agricultural and Horticultural	30,419		26,035		—		—
Bleaching Clay and Fluids Purification	62,051		53,337		—		—
Animal Health and Nutrition	20,909		17,766		—		—
Net Sales	$	113,379	$	97,138	$	235,210	$	207,843

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.

	July 31,
	Assets
	2022		2021
	(in thousands)
Business to Business Products	$	75,644	$	62,124
Retail and Wholesale Products	125,293		110,167
Unallocated assets	48,674		55,275
Total Assets	$	249,611	$	227,566

	Year Ended July 31,
	Net Sales				Income
	2022		2021		2022		2021
	(in thousands)
Business to Business Products	$	113,379	$	97,138	$	24,344	$	25,914
Retail and Wholesale Products	235,210		207,843		6,252		11,088
Net Sales	$	348,589	$	304,981
Corporate Expenses					(25,775)		(23,966)
Income from Operations					4,821		13,036
Total Other Income, Net					888		332
Income Before Income Taxes					5,709		13,368
Income Tax Expense					(97)		(2,388)
Net Income					$	5,612	$	10,980
Net Loss Attributable to Noncontrolling Interest					$	(62)	$	(133)
Net Income Attributable to Oil-Dri					$	5,674	$	11,113

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

	2022		2021
Sales to unaffiliated customers by:
Domestic operations	$	328,696	$	287,575
Foreign subsidiaries	$	19,893	$	17,406
Sales or transfers between geographic areas:
Domestic operations	$	6,418	$	5,347
Foreign subsidiaries	$	161	$	112
Income (Loss) before income taxes:
Domestic operations	$	6,552	$	14,144
Foreign subsidiaries	$	(843)	$	(776)
Net Income (Loss) attributable to Oil-Dri:
Domestic operations	$	6,430	$	11,710
Foreign subsidiaries	$	(756)	$	(597)
Identifiable assets:
Domestic operations	$	236,622	$	214,994
Foreign subsidiaries	$	12,989	$	12,572

Included within identifiable assets for our foreign subsidiaries is cash held at foreign banks of $3,260 and $3,054 as of July 31, 2022 and July 31, 2021, respectively.

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:

	2022	2021
Net sales for the years ended July 31	16%	18%
Net accounts receivable as of July 31	21%	20%

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