12. 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, 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 and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because we do not use them to evaluate segment 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.

	Three Months						Nine Months
For the Periods Ended March 31	2018			2017			2018			2017
Net sales
Animal Health		$	132,310		$	120,976		$	393,996		$	369,150
Mineral Nutrition			62,938			57,169			174,627			165,460
Performance Products			13,660			11,716			39,573			34,836
Total segments		$	208,908		$	189,861		$	608,196		$	569,446
Depreciation and amortization
Animal Health		$	5,359		$	5,311		$	15,878		$	15,220
Mineral Nutrition			584			611			1,753			1,695
Performance Products			277			255			782			708
Total segments		$	6,220		$	6,177		$	18,413		$	17,623
Adjusted EBITDA
Animal Health		$	36,292		$	31,806		$	105,070		$	99,034
Mineral Nutrition			5,375			4,343			14,705			13,072
Performance Products			386			446			898			1,448
Total segments		$	42,053		$	36,595		$	120,673		$	113,554
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	24,388		$	26,448		$	64,543		$	63,324
Interest expense, net			3,064			3,929			9,232			11,708
Depreciation and amortization – Total segments			6,220			6,177			18,413			17,623
Depreciation and amortization – Corporate			531			665			1,613			1,981
Corporate costs			8,650			6,859			24,675			22,799
Acquisition-related cost of goods sold			—			—			1,671			—
Acquisition-related accrued compensation			160			420			1,084			1,260
Acquisition-related transaction costs			—			—			400			1,274
Pension settlement cost			—			—			—			1,702
Gain on insurance settlement			—			(7,500)			—			(7,500)
Foreign currency (gains) losses, net			(960)			(403)			(958)			(617)
Adjusted EBITDA – Total segments		$	42,053		$	36,595		$	120,673		$	113,554

As of	March 31, 2018			June 30, 2017
Identifiable assets
Animal Health		$	460,732		$	442,521
Mineral Nutrition			69,847			55,184
Performance Products			22,044			23,681
Total segments			552,623			521,386
Corporate			118,221			102,011
Total		$	670,844		$	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 $4,106 and $3,719 as of March 31, 2018 and June 30, 2017, respectively. The Performance Products segment includes an investment in an equity method investee of $673 and $516 as of March 31, 2018 and June 30, 2017, respectively. Corporate assets include cash and cash equivalents, certain debt issuance costs, income tax related assets and certain other assets.