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				Nine Months
For the Periods Ended March 31	2020		2019		2020		2019
Net sales
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 segments	$	210,739	$	205,736	$	614,471	$	624,112

Depreciation and amortization
Animal Health	$	6,665	$	5,571	$	19,760	$	16,420
Mineral Nutrition		629		592		1,871		1,805
Performance Products		509		273		1,303		825
Total segments	$	7,803	$	6,436	$	22,934	$	19,050

Adjusted EBITDA
Animal Health	$	34,635	$	33,241	$	93,534	$	104,882
Mineral Nutrition		4,055		5,287		11,214		11,934
Performance Products		1,506		1,330		3,815		3,560
Total segments	$	40,196	$	39,858	$	108,563	$	120,376


Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	$	18,664	$	19,515	$	39,131	$	62,294
Interest expense, net		3,263		2,931		10,049		8,729
Depreciation and amortization – Total segments		7,803		6,436		22,934		19,050
Depreciation and amortization – Corporate		445		439		1,243		1,357
Corporate costs		10,064		9,850		30,283		28,654
Restructure costs		—		—		425		—
Stock-based compensation		565		565		1,694		1,694
Acquisition-related cost of goods sold		—		—		280		—
Acquisition-related transaction costs		—		—		462		—
Acquisition-related other		—		—		167		—
Other, net		—		—		—		(1,506)
Foreign currency (gains) losses, net		(608)		122		1,895		104
Adjusted EBITDA – Total segments	$	40,196	$	39,858	$	108,563	$	120,376


	March 31,		June 30,
As of	2020		2019
Identifiable assets
Animal Health	$	555,917	$	508,864
Mineral Nutrition		68,693		67,662
Performance Products		32,232		32,886
Total segments		656,842		609,412
Corporate		119,208		117,259
Total	$	776,050	$	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 $3,635 and $3,287 as of March 31, 2020, and June 30, 2019, respectively. The Performance Products segment includes an investment in an equity method investee of $884 and $759 as of March 31, 2020, 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.