4. 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:

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.

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

Vaccines: Our vaccines are primarily focused on preventing diseases in poultry and swine. They protect animals from either viral or bacterial disease challenges. We develop, manufacture and market conventionally licensed and autogenous vaccine products and also produce and market adjuvants to vaccine manufacturers. We have developed and market 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	2020		2019		2018

Animal Health
MFAs and other	$	322,300	$	350,468	$	336,666
Nutritional specialties		129,264		113,215		122,978
Vaccines		75,340		68,291		72,083
Total Animal Health	$	526,904	$	531,974		531,727
Mineral Nutrition		214,412		233,782		234,922
Performance Products		59,038		62,239		53,333
Total	$	800,354	$	827,995	$	819,982

Net Sales by Region


For the Year Ended June 30	2020		2019		2018

United States	$	471,938	$	480,101	$	490,880
Latin America and Canada		158,939		152,380		143,231
Europe, Middle East and Africa		112,179		105,365		110,377
Asia Pacific		57,298		90,149		75,494
Total	$	800,354	$	827,995	$	819,982

Net sales by region are based on country of destination.

Deferred revenue was $4,570 and $5,464 as of June 30, 2020 and June 30, 2019, respectively. Accrued expenses and other current liabilities included $1,109 and $965 of the total deferred revenue as of June 30, 2020 and June 30, 2019, respectively. The deferred revenue results 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.

Interest Expense and Depreciation and Amortization


For the Year Ended June 30	2020		2019		2018
Interest expense, net
Term loan	$	7,751	$	8,553	$	8,321
Revolving credit facility		5,317		3,748		2,777
Amortization of debt issuance costs		882		882		883
Other		663		494		1,622
Interest expense		14,613		13,677		13,603
Interest (income)		(1,757)		(1,901)		(1,693)
	$	12,856	$	11,776	$	11,910
Depreciation and amortization
Depreciation of property, plant and equipment	$	23,250	$	21,423	$	21,044
Amortization of intangible assets		8,869		6,092		5,851
Amortization of other assets		222		49		48
	$	32,341	$	27,564	$	26,943

Depreciation of property, plant and equipment includes amortization of capitalized software costs of $1,038, $1,217 and $1,519 during 2020, 2019 and 2018, respectively.

Amortization of intangible assets as of June 30, 2020, is expected to be $8,732, $8,608, $8,608, $8,428, $6,773 and $29,848 for 2021, 2022, 2023, 2024, 2025 and thereafter, respectively.


For the Year Ended June 30	2020		2019		2018
Research and development expenditures	$	13,738	$	12,093	$	9,998