Segment Information and Geographic Data

9 Months Ended

Feb. 28, 2019

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, 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 retailer, livestock producers 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 selling 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:

					Corporate and
	Food		Animal		Eliminations
	Safety		Safety		(1)			Total
	(in thousands)
As of and for the three months ended February 28, 2019
Product revenues to external customers	$	44,790	$	32,585	$	—		$	77,375
Service revenues to external customers		6,323		14,002		—			20,325
Total revenues to external customers		51,113		46,587		—			97,700
Operating income (loss)		8,339		7,338		(1,038	)		14,639
Total assets		204,570		221,335		246,680			672,585
As of and for the three months ended February 28, 2018 - Revised (2)
Product revenues to external customers	$	42,286	$	34,898	$	—		$	77,184
Service revenues to external customers		5,027		12,692		—			17,719
Total revenues to external customers		47,313		47,590		—			94,903
Operating income (loss)		8,258		8,493		(838	)		15,913
Total assets		188,075		215,371		192,155			595,601

	(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)	Revenues for the three months ended February 28, 2018 have been revised as discussed in Note 1. For the three months ended February 28, 2018, product revenues were reduced by $332,000 in the Food Safety segment and $626,000 in the Animal Safety segment; service revenues were unchanged in the Food Safety segment and were reduced by $31,000 in the Animal Safety segment.

					Corporate and
	Food		Animal		Eliminations
	Safety		Safety		(1)			Total
	(in thousands)
For the nine months ended February 28, 2019
Product revenues to external customers	$	139,979	$	109,918	$	—		$	249,897
Service revenues to external customers		17,067		37,460		—			54,527
Total revenues to external customers		157,046		147,378		—			304,424
Operating income (loss)		29,554		23,101		(3,291	)		49,364
For the nine months ended February 28, 2018 - Revised (2)
Product revenues to external customers	$	128,491	$	112,709	$	—		$	241,200
Service revenues to external customers		14,319		34,292		—			48,611
Total revenues to external customers		142,810		147,001		—			289,811
Operating income (loss)		25,704		27,691		(3,060	)		50,335

	(1)	Includes the elimination of intersegment transactions.
	(2)	Revenues for the nine months ended February 28, 2018 have been revised as discussed in Note 1. For the nine months ended February 28, 2018, product revenues were reduced by $1,130,000 in the Food Safety segment and $1,968,000 in the Animal Safety segment; service revenues were unchanged in the Food Safety segment and reduced by $56,000 in the Animal Safety segment.

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

	Three Months ended				Nine Months Ended
	February 28,				February 28,
	2019		2018		2019		2018
	(in thousands)				(in thousands)
Revenues by Geographic Location
Domestic	$	57,422	$	57,825	$	182,298	$	180,414
International		40,278		37,078		122,126		109,397
Total revenue		97,700		94,903		304,424		289,811