16. 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	2020		2019		2018
Net sales
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 segments	$	800,354	$	827,995	$	819,982
Depreciation and amortization
Animal Health	$	26,287	$	22,312	$	21,447
Mineral Nutrition		2,522		2,319		2,371
Performance Products		1,860		1,127		1,029
Total segments	$	30,669	$	25,758	$	24,847
Adjusted EBITDA
Animal Health	$	123,106	$	136,049	$	141,914
Mineral Nutrition		14,678		15,712		18,583
Performance Products		4,534		4,728		1,881
Total segments	$	142,318	$	156,489	$	162,378
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	55,512	$	71,505	$	88,070
Interest expense, net		12,856		11,776		11,910
Depreciation and amortization – Total segments		30,669		25,758		24,847
Depreciation and amortization – Corporate		1,672		1,806		2,096
Corporate costs		40,178		38,452		33,420
Restructure costs		425		6,281		—
Stock-based compensation		2,259		2,259		334
Acquisition-related cost of goods sold		280		—		1,671
Acquisition-related accrued compensation		—		—		1,152
Acquisition-related transaction costs		462		213		400
Acquisition-related other, net		(2,821)		—		(468)
Other, net		—		(1,506)		—
Foreign currency (gains) losses, net		826		(55)		(1,054)
Adjusted EBITDA – Total segments	$	142,318	$	156,489	$	162,378


As of June 30	2020		2019
Identifiable assets
Animal Health	$	560,663	$	508,864
Mineral Nutrition		65,686		67,662
Performance Products		31,016		32,886
Total segments		657,365		609,412
Corporate		126,735		117,259
Total	$	784,100	$	726,671

The Animal Health segment includes all goodwill of the Company. 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	2020		2019
Property, plant and equipment, net
United States	$	59,778	$	55,001
Israel		54,041		52,434
Brazil		14,771		19,647
Ireland		15,263		9,409
Other		4,256		3,744
	$	148,109	$	140,235