Business Segments

3 Months Ended

Sep. 30, 2018

11. Business Segments

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.

	Three Months
For the Periods Ended September 30	2018			2017
Net sales
Animal Health		$	131,189		$	128,841
Mineral Nutrition			54,838			52,073
Performance Products			14,126			12,498
Total segments		$	200,153		$	193,412
Depreciation and amortization
Animal Health		$	5,356		$	5,254
Mineral Nutrition			597			585
Performance Products			273			246
Total segments		$	6,226		$	6,085
Adjusted EBITDA
Animal Health		$	35,716		$	33,742
Mineral Nutrition			2,563			3,716
Performance Products			716			248
Total segments		$	38,995		$	37,706

	Three Months
For the Periods Ended September 30	2018			2017
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	22,705		$	18,944
Interest expense, net			2,783			3,118
Depreciation and amortization – Total segments			6,226			6,085
Depreciation and amortization – Corporate			465			559
Corporate costs			8,886			7,589
Stock-based compensation			565			—
Acquisition-related cost of goods sold			—			249
Acquisition-related accrued compensation			—			437
Acquisition-related transaction costs			—			400
Foreign currency (gains) losses, net			(2,635)			325
Adjusted EBITDA – Total segments		$	38,995		$	37,706

As of	September 30, 2018			June 30, 2018
Identifiable assets
Animal Health		$	461,119		$	455,704
Mineral Nutrition			73,895			69,779
Performance Products			29,048			24,040
Total segments			564,062			549,523
Corporate			114,413			122,156
Total		$	678,475		$	671,679

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 $3,491 and $3,432 as of September 30, 2018 and June 30, 2018, respectively. The Performance Products segment includes an investment in an equity method investee of $528 and $437 as of September 30, 2018 and June 30, 2018, respectively. Corporate assets include cash and cash equivalents, short-term investments, certain debt issuance costs, income tax related assets and certain other assets.