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Business Segments
 3 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Business Segments

    12.    Business Segments

The Animal Health segment manufactures and markets products for the poultry, swine, cattle, dairy, aquaculture and ethanol markets. The business includes net sales of medicated feed additives and other related products, nutritional specialty products and vaccines. The Mineral Nutrition segment manufactures and markets trace minerals for the cattle, swine, poultry and pet food markets. The Performance Products segment manufactures and markets a variety of products for use in the personal care, automotive, industrial chemical and chemical catalyst industries.
We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments. We do not allocate such items to the principal segments because they are not used to evaluate their operating results or financial position. Corporate costs include the departmental operating costs of the Board of Directors, the Chairman, President and Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the Senior Vice President and General Counsel, the Senior Vice President of Human Resources, the Chief Information Officer and the Executive Vice President of Corporate Strategy. Costs include the executives and their staffs and include compensation and benefits, outside services, professional fees and office space. Assets include cash and cash equivalents, debt issue costs and certain other assets.
We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as EBITDA plus (a) (income) loss from, and disposal of, discontinued operations, (b) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (c) certain items that we consider to be unusual or non-recurring. We define EBITDA as net income plus (i) interest expense, net, (ii) provision for income taxes or less benefit for income taxes and (iii) depreciation and amortization.
The accounting policies of our segments are the same as those described in the summary of significant accounting policies included in the “—Summary of Significant Accounting Policies and New Accounting Standards.”
 
​
Three Months
For the Periods Ended September 30
2014
2013
Net sales
​
​
 
​
​
 
Animal Health
$
117,225
 
$
101,171
 
Mineral Nutrition
​
55,447
 
​
46,186
 
Performance Products
​
14,786
 
​
14,871
 
​
$
187,458
 
$
162,228
 
Adjusted EBITDA
​
​
 
​
​
 
Animal Health
$
32,454
 
$
24,107
 
Mineral Nutrition
​
3,479
 
​
2,460
 
Performance Products
​
1,036
 
​
1,096
 
Corporate
​
(6,511
)
​
(6,065
)
​
$
30,458
 
$
21,598
 
Reconciliation of Adjusted EBITDA to income before income taxes
​
​
 
​
​
 
Adjusted EBITDA
$
30,458
 
$
21,598
 
Depreciation and amortization
​
(5,353
)
​
(5,201
)
Interest expense, net
​
(3,490
)
​
(8,735
)
Foreign currency gains (losses), net
​
1,204
 
​
(648
)
Income before income taxes
$
22,819
 
$
7,014
 
​
​
 
 
As of
September 30,
2014
June 30,
                  2014
Identifiable assets
​
​
 
​
​
 
Animal Health
$
356,508
 
$
361,376
 
Mineral Nutrition
​
54,827
 
​
57,460
 
Performance Products
​
23,172
 
​
23,429
 
Corporate
​
36,313
 
​
30,058
 
​
$
470,820
 
$
472,323
 
All goodwill is included in the Animal Health segment. The Animal Health segment includes advances to and investment in equity method investee of $5,254 and $5,140 as of September 30, 2014, and June 30, 2014, respectively. The Performance Products segment includes an investment in equity method investee of $522 and $479 as of September 30, 2014, and June 30, 2014, respectively. Corporate includes all cash and cash equivalents.
We evaluate our investments in equity method investees for impairment if circumstances indicate that the fair value of the investment may be impaired. The assets underlying a $5,254 equity investment are currently idled; we have concluded the investment is not currently impaired, based on expected future operating cash flows and/or disposal value.