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Segment Information
 12 Months Ended
May 31, 2020
Segment Information
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 the 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 sales and marketing of our 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.
Neogen’s operation in Australia originally focused on providing genomics services and sales of animal safety products and reports through the Animal Safety segment. With the acquisition of Cell BioSciences in February 2020, this operation has expanded to offer our complete line of products and services, including those usually associated with the Food Safety segment. These additional products are managed and directed by existing management at Neogen Australasia and report through the Animal 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 2020
 
 
 
  
 
 
  
 
 
  
 
 
Product revenues to external customers
  $
189,893
    $
  145,646
    $
—  
     $
335,539
 
Service revenues to external customers
   
22,798
     
59,833
     
—  
      
82,631
 
                                 
Total revenues to external customers
   
212,691
     
205,479
     
—  
      
418,170
 
Operating income (loss)
   
33,526
     
39,051
     
(5,054
 )    
67,523
 
Depreciation and amortization
   
10,173
     
8,223
     
—  
      
18,396
 
Total Assets
   
222,331
     
231,178
     
343,673
     
797,182
 
Expenditures for long-lived assets
   
15,867
     
8,185
     
—  
      
24,052
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2019
 
 
 
  
 
 
  
 
 
  
 
 
Product revenues to external customers
  $
190,675
    $
148,764
    $
—  
     $
339,439
 
Service revenues to external customers
   
22,799
     
51,948
     
—  
      
74,747
 
                                 
Total revenues to external customers
   
213,474
     
200,712
     
—  
      
414,186
 
Operating income (loss)
   
39,020
     
33,875
     
(4,801
 )    
68,094
 
Depreciation and amortization
   
9,525
     
8,099
     
—  
      
17,624
 
Total Assets
   
206,267
     
221,950
     
267,523
     
695,740
 
Expenditures for long-lived assets
   
8,916
     
5,745
     
—  
      
14,661
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2018
 
 
 
  
 
 
  
 
 
  
 
 
Product revenues to external customers
  $
174,553
    $
156,735
    $
—  
     $
331,288
 
Service revenues to external customers
   
19,924
     
46,718
     
—  
      
66,642
 
                                 
Total revenues to external customers
   
194,477
     
203,453
     
—  
      
397,930
 
Operating income (loss)
   
34,561
     
39,529
     
(3,896
 )    
70,194
 
Depreciation and amortization
   
9,083
     
7,975
     
—  
      
17,058
 
Total Assets
   
186,570
     
220,629
     
210,810
     
618,009
 
Expenditures for long-lived assets
 
 
10,538
 
 
 
10,408
 
 
 
—  
 
 
 
20,946
 
(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.
The following table presents the Company’s revenue disaggregated by geographical location:
 
Year ended May 31
 
(in thousands)
 
2020
 
 
2019
 
Domestic
  $
253,458
    $
248,304
 
International
   
164,712
     
165,882
 
                 
Total revenue
   
418,170
     
414,186