4. Statements of Operations—Additional Information

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, swine and cattle. 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


	Three Months				Nine Months
For the Periods Ended March 31	2020		2019		2020		2019
Animal Health
MFAs and other	$	82,670	$	84,095	$	249,659	$	264,153
Nutritional specialties		34,636		28,227		98,131		84,657
Vaccines		21,668		16,867		56,723		51,130
Total Animal Health	$	138,974	$	129,189	$	404,513	$	399,940
Mineral Nutrition		56,200		60,653		164,534		177,810
Performance Products		15,565		15,894		45,424		46,362
Total	$	210,739	$	205,736	$	614,471	$	624,112

Net Sales by Region


	Three Months				Nine Months
For the Periods Ended March 31	2020		2019		2020		2019
United States	$	126,827	$	122,651	$	368,230	$	363,202
Latin America and Canada		40,284		31,197		119,730		110,353
Europe, Middle East and Africa		31,958		27,317		83,311		78,340
Asia Pacific		11,670		24,571		43,200		72,217
Total	$	210,739	$	205,736	$	614,471	$	624,112

Net sales by region are based on country of destination.

Deferred revenue was $4,826 and $5,464 as of March 31, 2020, and June 30, 2019, respectively. Accrued expenses and other current liabilities included $1,070 and $965 of the total deferred revenue as of March 31, 2020, and June 30, 2019, 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.

Interest Expense and Depreciation and Amortization


	Three Months				Nine Months
For the Periods Ended March 31	2020		2019		2020		2019
Interest expense, net
Term loan	$	1,888	$	2,077	$	5,967	$	6,391
Revolving credit facility		1,400		1,022		4,361		2,689
Amortization of debt issuance costs and debt discount		220		221		662		662
Acquisition-related accrued interest		75		—		200		—
Other		78		99		241		382
Interest expense		3,661		3,419		11,431		10,124
Interest (income)		(398)		(488)		(1,382)		(1,395)
	$	3,263	$	2,931	$	10,049	$	8,729


	Three Months				Nine Months
For the Periods Ended March 31	2020		2019		2020		2019
Depreciation and amortization
Depreciation of property, plant and equipment	$	5,824	$	5,324	$	17,395	$	15,820
Amortization of intangible assets		2,325		1,538		6,659		4,550
Amortization of other assets		99		13		123		37
	$	8,248	$	6,875	$	24,177	$	20,407