12. 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.


	Three Months				Six Months
For the Periods Ended December 31	2019		2018		2019		2018
Net sales
Animal Health	$	143,689	$	139,562	$	265,539	$	270,751
Mineral Nutrition		55,685		62,319		108,334		117,157
Performance Products		14,638		16,342		29,859		30,468
Total segments	$	214,012	$	218,223	$	403,732	$	418,376
Depreciation and amortization
Animal Health	$	6,711	$	5,493	$	13,095	$	10,849
Mineral Nutrition		629		616		1,242		1,213
Performance Products		417		279		794		552
Total segments	$	7,757	$	6,388	$	15,131	$	12,614
Adjusted EBITDA
Animal Health	$	33,838	$	35,925	$	58,899	$	71,641
Mineral Nutrition		3,684		4,084		7,159		6,647
Performance Products		1,457		1,514		2,309		2,230
Total segments	$	38,979	$	41,523	$	68,367	$	80,518


Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	16,895	$	20,074	$	20,467	$	42,779
Interest expense, net		3,432		3,015		6,786		5,798
Depreciation and amortization – Total segments		7,757		6,388		15,131		12,614
Depreciation and amortization – Corporate		391		453		798		918
Corporate costs		10,491		9,918		20,219		18,804
Restructure costs		—		—		425		—
Stock-based compensation		564		564		1,129		1,129
Acquisition-related cost of goods sold		—		—		280		—
Acquisition-related transaction costs		—		—		462		—
Acquisition-related other		167		—		167		—
Other, net		—		(1,506)		—		(1,506)
Foreign currency (gains) losses, net		(718)		2,617		2,503		(18)
Adjusted EBITDA – Total segments	$	38,979	$	41,523	$	68,367	$	80,518


	December 31,		June 30,
As of	2019		2019
Identifiable assets
Animal Health	$	572,921	$	508,864
Mineral Nutrition		69,988		67,662
Performance Products		33,530		32,886
Total segments		676,439		609,412
Corporate		111,879		117,259
Total	$	788,318	$	726,671

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 $3,548 and $3,287 as of December 31, 2019 and June 30, 2019, respectively. The Performance Products segment includes an investment in an equity method investee of $852 and $759 as of December 31, 2019 and June 30, 2019, respectively. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.