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Segment Information and Geographical Data
3 Months Ended
Aug. 31, 2018
Segment Information and Geographical Data

4. SEGMENT INFORMATION AND GEOGRAPHIC DATA

We have 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, dehydrated culture media 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 the control of rodents, insects and disease in and around agricultural, food production and other facilities.

Our 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 our 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 follows:

 

     Food
Safety
     Animal
Safety
     Corporate and
Eliminations
(1)
     Total  
     (in thousands)  

As of and for the three months ended August 31, 2018

           

Product revenues to external customers

   $ 46,933      $ 36,027      $ —        $ 82,960  

Service revenues to external customers

     5,250        11,416        —          16,666  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues to external customers

     52,183        47,443        —          99,626  

Operating income (loss)

     10,873        6,706        (1,100      16,479  

Total assets

     201,727        212,786        226,413        640,926  

As of and for the three months ended August 31, 2017 - Revised(2)

           

Product revenues to external customers

   $ 41,839      $ 37,706      $ —        $ 79,545  

Service revenues to external customers

     4,452        10,212        —          14,664  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues to external customers

     46,291        47,918        —          94,209  

Operating income (loss)

     8,777        8,669        (1,022      16,424  

Total assets

     194,857        209,404        143,073        547,334  

 

(1)

Includes corporate assets, consisting principally of 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.

 

(2)

Segment revenues for the three months ended August 31, 2017 have been revised as discussed in Note 1. For the three month period ended August 31, 2017, product revenues were reduced by $443,000 in the Food Safety segment and $579,000 in the Animal Safety segment; service revenues were unchanged in the Food Safety Segment and were reduced by $25,000 in the Animal Safety segment.

The following table presents the Company’s revenue disaggregated by geographic location:

 

     Three months ended
August 31,
 
     2018      2017  
     (in thousands)  

Revenues by Geographic Location

     

Domestic

   $ 59,846      $ 60,137  

International

     39,780        34,072  
  

 

 

    

 

 

 

Total revenue

     99,626        94,209