Business Segments

12 Months Ended

Jun. 30, 2019

14. 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.

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 Year Ended June 30	2019			2018			2017
Net sales
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 segments		$	827,995		$	819,982		$	764,281
Depreciation and amortization
Animal Health		$	22,312		$	21,447		$	20,132
Mineral Nutrition			2,319			2,371			2,332
Performance Products			1,127			1,029			939
Total segments		$	25,758		$	24,847		$	23,403
Adjusted EBITDA
Animal Health		$	136,049		$	141,914		$	130,261
Mineral Nutrition			15,712			18,583			17,426
Performance Products			4,728			1,881			2,057
Total segments		$	156,489		$	162,378		$	149,744
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	71,505		$	88,070		$	80,543
Interest expense, net			11,776			11,910			14,906
Depreciation and amortization–Total segments			25,758			24,847			23,403
Depreciation and amortization–Corporate			1,806			2,096			2,598
Corporate costs			38,452			33,420			29,625
Restructuring costs			6,281			—			—
Stock-based compensation			2,259			334			—
Acquisition-related cost of goods sold			—			1,671			—
Acquisition-related accrued compensation			—			1,152			1,680
Acquisition-related transaction costs			213			400			1,274
Acquisition-related other, net			—			(468)			(972)
Other			(1,506)			—			—
Pension settlement cost			—			—			1,702
Gain on insurance settlement			—			—			(7,500)
Foreign currency (gains) losses, net			(55)			(1,054)			(113)
Loss on extinguishment of debt			—			—			2,598
Adjusted EBITDA–Total segments		$	156,489		$	162,378		$	149,744

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

As of June 30	2019			2018
Identifiable assets
Animal Health		$	508,864		$	455,704
Mineral Nutrition			67,662			69,779
Performance Products			32,886			24,040
Total segments			609,412			549,523
Corporate			117,259			122,156
Total		$	726,671		$	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 $3,287 and $3,432 as of June 30, 2019 and 2018, respectively. The Performance Products segment includes an investment in an equity method investee of $759 and $437 as of June 30, 2019 and 2018, respectively. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.

The geographic location of property, plant and equipment, net was:

As of June 30	2019			2018
Property, plant and equipment, net
United States		$	54,999		$	55,268
Israel			52,434			45,055
Brazil			19,647			19,653
Other			13,155			10,132
		$	140,235		$	130,108