14. Business Segments

The Animal Health segment manufactures and markets a broad range of products for food animals, including poultry, swine, cattle, dairy and aquaculture. 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 a broad range of trace minerals for food animals. The Performance Products segment manufactures and markets a variety of products for use in the personal care, 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 and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development. Corporate assets include cash and cash equivalents, certain debt issue costs, income tax related assets and certain other assets.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) 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 (e) certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

For the Years Ended June 30	2018			2017			2016
Net sales
Animal Health		$	531,727		$	497,745		$	486,140
Mineral Nutrition			234,922			218,298			216,685
Performance Products			53,333			48,238			48,701
Total segments		$	819,982		$	764,281		$	751,526
Depreciation and amortization
Animal Health		$	21,447		$	20,132		$	17,149
Mineral Nutrition			2,371			2,332			2,467
Performance Products			1,029			939			807
Total segments		$	24,847		$	23,403		$	20,423
Adjusted EBITDA
Animal Health		$	141,914		$	130,261		$	127,442
Mineral Nutrition			18,583			17,426			14,971
Performance Products			1,881			2,057			970
Total segments		$	162,378		$	149,744		$	143,383
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	88,070		$	80,543		$	76,761
Interest expense, net			11,910			14,906			16,592
Depreciation and amortization–Total segments			24,847			23,403			20,423
Depreciation and amortization–Corporate			2,096			2,598			3,029
Corporate costs			33,420			29,625			29,323
Acquisition-related cost of goods sold			1,671			—			2,566
Acquisition-related accrued compensation			1,152			1,680			1,680
Acquisition-related transaction costs			400			1,274			618
Acquisition-related other, net			(468)			(972)			—
Stock-based compensation			334			—			—
Pension settlement cost			—			1,702			—
Gain on insurance settlement			—			(7,500)			—
Foreign currency (gains) losses, net			(1,054)			(113)			(7,609)
Loss on extinguishment of debt			—			2,598			—
Adjusted EBITDA–Total segments		$	162,378		$	149,744		$	143,383

Acquisition-related other, net includes adjustments to contingent consideration on acquisitions and impairments of intangible assets.

As of June 30	2018			2017
Identifiable assets
Animal Health		$	455,704		$	442,521
Mineral Nutrition			69,779			55,184
Performance Products			24,040			23,681
Total segments			549,523			521,386
Corporate			122,156			102,011
Total		$	671,679		$	623,397

The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,432 and $3,719 as of June 30, 2018 and 2017, respectively. The Performance Products segment includes an investment in equity method investee of $437 and $516 as of June 30, 2018 and 2017, respectively. Corporate assets include cash and cash equivalents, short-term investments, certain debt issuance costs, income tax related assets and certain other assets.