Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

18. 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 dairy and beef cattle. 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 99% and 96% of our total product sales during the three-month periods ended June 30, 2019 and 2018, respectively. Sales of the First Defense^® product line aggregated 96% of our total product sales during the six-month periods ended June 30, 2019 and 2018. Our primary customers for the majority of our product sales (93% and 84% during the three-month periods ended June 30, 2019 and 2018, respectively and 89% and 87% during the six-month periods ended June 30, 2019 and 2018, 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 7% and 16% of our total product sales during the three-month periods ended June 30, 2019 and 2018, respectively, and 10% and 13% of our total product sales during the six-month periods ended June 30, 2019 and 2018, respectively.