9.	Segment Information

The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants, and insecticides to assist in control of rodents, insects and disease in and around agricultural, food production and other facilities.

Neogen’s international operations in the United Kingdom, Mexico, Brazil, China and India originally focused on the Company’s Food Safety products, and each of these units reports through the Food Safety segment. In recent years, these operations have expanded to offer the Company’s complete line of products and services, including those usually associated with the Animal Safety segment such as cleaners, disinfectants, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing management, and are reported through the Food Safety segment.

The accounting policies of each of the segments are the same as those described in Note 1.

Segment information is as follows:


(in thousands)	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
Fiscal 2017
Product revenues to external customers	$	155,795	$	150,717	$	—		$	306,512
Service revenues to external customers		15,530		39,552		—			55,082

Total revenues to external customers		171,325		190,269		—			361,594
Operating income (loss)		33,971		34,841		(3,867	)		64,945
Depreciation and amortization		7,088		7,603		—			14,691
Total Assets		190,895		210,927		126,587			528,409
Expenditures for long-lived assets		10,332		4,246		—			14,578

Fiscal 2016
Product revenues to external customers	$	133,743	$	139,827	$	—		$	273,570
Service revenues to external customers		12,678		35,027		—			47,705

Total revenues to external customers		146,421		174,854		—			321,275
Operating income (loss)		28,984		30,978		(3,576	)		56,386
Depreciation and amortization		5,609		6,572		—			12,181
Total Assets		143,303		215,374		91,263			449,940
Expenditures for long-lived assets		9,192		5,030		—			14,222

Fiscal 2015
Product revenues to external customers	$	119,990	$	123,919	$	—		$	243,909
Service revenues to external customers		11,489		27,676		—			39,165

Total revenues to external customers		131,479		151,595		—			283,074
Operating income (loss)		30,265		26,034		(3,181	)		53,118
Depreciation and amortization		4,620		6,029		—			10,649
Total Assets		110,655		179,082		102,444			392,181
Expenditures for long-lived assets		4,216		5,403		—			9,619

(1)	Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and non-controlling interests.

Revenues to customers located outside the United States amounted to $129,322,000 or 35.8% of consolidated revenues in fiscal 2017, $107,680,000 or 33.5% in fiscal 2016 and $103,867,000 or 36.7% in fiscal 2015 and were derived primarily in various countries throughout Europe, Canada, South and Central America and Asia. No customer represented revenues in excess of 10% of consolidated net sales in any of the three years. The United States based operations represent 76% of the Company’s long-lived assets as of May 31, 2017 and 89% as May 31, 2016.