Segment Information

6 Months Ended

Jun. 30, 2017

Segment Information [Abstract]

SEGMENT INFORMATION

16. SEGMENT INFORMATION

We principally operate in the business segment described in Note 1. Pursuant to Codification Topic 280, Segment Reporting, we operate in one reportable business segment, that being the development, acquisition, manufacture and sale of products that improve the health and productivity of cows for the dairy and beef industries. Almost all of our internally funded product development expenses are in support of such products. The significant accounting policies of this segment are described in Note 2. Our single operating segment is defined as the component of our business for which financial information is available and evaluated regularly by our chief operating decision-maker in deciding how to allocate resources and in assessing performance. Our chief operating decision-maker is our President and CEO.

Sales of the First Defense^® product line aggregated 95% and 93% of our total product sales during the three-month periods ended June 30, 2017 and 2016, respectively, and 93% and 92% of our total product sales during the six-month periods ended June 30, 2017 and 2016, respectively. Our primary customers for the majority of our product sales (91% and 80% during the three-month periods ended June 30, 2017 and 2016, respectively, and 82% and 85% during the six-month periods ended June 30, 2017 and 2016, respectively) are in the U.S. dairy and beef industries. Product sales to international customers, who are also in the dairy and beef industries, aggregated 9% and 17% of our total product sales during the three-month periods ended June 30, 2017 and 2016, respectively, and 15% and 13% of our total product sales during the six-month periods ended June 30, 2017 and 2016, respectively.