Statements of Operations-Additional Information

12 Months Ended

Jun. 30, 2019

Supplemental Income Statement Elements [Abstract]

Statements of Operations-Additional Information

3. Statements of Operations—Additional Information

Disaggregated revenue, deferred revenue and customer payment terms

We develop, manufacture and market a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. The products help prevent, control and treat diseases, enhance nutrition to help improve health and contribute to balanced mineral nutrition. The animal health and mineral nutrition products are sold directly to integrated poultry, swine and cattle integrators and through commercial animal feed manufacturers, wholesalers and distributors. The animal health industry and demand for many of the animal health products in a particular region are affected by changing disease pressures and by weather conditions, as product usage follows varying weather patterns and seasons. Our operations are primarily focused in regions where the majority of livestock production is consolidated in large commercial farms.

We have a diversified portfolio of products that are classified within our three business segments—Animal Health, Mineral Nutrition and Performance Products. Each segment has its own dedicated management and sales team.

Animal Health

The Animal Health business develops, manufactures and markets products in three main categories:

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MFAs and Other: MFAs and other products primarily consist of concentrated medicated products that are administered through animal feeds, commonly referred to as Medicated Feed Additives (“MFAs”). Specific product classifications include antibacterials, which inhibit the growth of pathogenic bacteria that cause bacterial infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and other related products.

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Nutritional Specialties: Nutritional specialty products enhance nutrition to help improve health and performance in areas such as immune system function and digestive health.

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Vaccines: Our vaccines are primarily focused on preventing diseases in poultry and swine. They protect animals from either viral or bacterial disease challenges. We also manufacture and distribute autogenous vaccine products and market adjuvants to vaccine manufacturers. We have developed an innovative and proprietary delivery platform for vaccines.

Mineral Nutrition

The Mineral Nutrition business is comprised of formulations and concentrations of trace minerals such as zinc, manganese, copper, iron and other compounds, with a focus on customers in North America. The customers use these products to fortify the daily feed requirements of their livestock’s diets and maintain an optimal balance of trace elements in each animal. We manufacture and market a broad range of mineral nutrition products for food animals including poultry, swine and beef and dairy cattle.

Performance Products

The Performance Products business manufactures and markets a number of specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States.

The following tables present our revenues disaggregated by major product category and geographic region:

Net Sales by Product Type

For the Year Ended June 30	2019			2018			2017
Animal Health
MFAs and other		$	350,468		$	336,666		$	321,430
Nutritional specialties			113,215			122,978			111,282
Vaccines			68,291			72,083			65,033
Total Animal Health		$	531,974		$	531,727		$	497,745
Mineral Nutrition			233,782			234,922			218,298
Performance Products			62,239			53,333			48,238
Total		$	827,995		$	819,982		$	764,281

Net Sales by Region

For the Year Ended June 30	2019			2018			2017
United States		$	480,101		$	490,880		$	483,794
Latin America and Canada			152,380			143,231			113,187
Europe, Middle East and Africa			105,365			110,377			95,838
Asia Pacific			90,149			75,494			71,462
Total		$	827,995		$	819,982		$	764,281

Net sales by region are based on country of destination.

Deferred revenue was $5,464 and $4,530 as of June 30, 2019 and June 30, 2018, respectively. Accrued expenses and other current liabilities included $965 and $508 of the total deferred revenue as of June 30, 2019 and June 30, 2018, respectively. The deferred revenue resulted primarily from certain customer arrangements, including technology licensing fees and discounts on future product sales. The transaction price associated with our deferred revenue arrangements is generally based on the stand alone sales prices of the individual products or services.

Our customer payment terms generally range from 30 to 120 days globally and do not include any significant financing components. Payment terms vary based on industry and business practices within the regions in which we operate. Our average worldwide collection period for accounts receivable is approximately 60 to 70 days after the revenue is recognized.

For the Year Ended June 30	2019			2018			2017
Interest expense, net
Term loan		$	8,553		$	8,321		$	11,482
Revolving credit facility			3,748			2,777			2,897
Amortization of debt issuance costs and debt discount			882			883			1,015
Acquisition-related accrued interest			—			1,085			1,373
Other			494			537			105
Interest expense			13,677			13,603			16,872
Interest (income)			(1,901)			(1,693)			(1,966)
		$	11,776		$	11,910		$	14,906

For the Year Ended June 30	2019			2018			2017
Depreciation and amortization
Depreciation of property, plant and equipment		$	21,423		$	21,044		$	19,916
Amortization of intangible assets			6,092			5,851			5,950
Amortization of other assets			49			48			135
		$	27,564		$	26,943		$	26,001

Depreciation of property, plant and equipment includes amortization of capitalized software costs of $1,217, $1,519 and $2,199 during 2019, 2018 and 2017, respectively.

Amortization of intangible assets as of June 30, 2019, is expected to be $6,033, $5,487, $5,381, $5,380, $5,161 and $18,236 for 2020, 2021, 2022, 2024, 2025 and thereafter, respectively.

For the Year Ended June 30	2019			2018			2017
Research and development expenditures		$	12,083		$	9,998		$	9,442