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Segment Information and Geographic Data

6 Months Ended

Nov. 30, 2020

Segment Information and Geographic Data

7. 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 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.

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 follows:

										Corporate and
		Food				Animal				Eliminations
(in thousands)		Safety				Safety				(1)				Total
As of and for the three months ended November 30, 2020
Product revenues to external customers		$	51,323			$	41,214			$	—			$	92,537
Service revenues to external customers			6,211				16,252				—				22,463
Total revenues to external customers			57,534				57,466				—				115,000
Operating income (loss)			8,960				12,246				(1,961	)			19,245
Total assets			226,735				228,126				390,765				845,626
As of and for the three months ended November 30, 2019
Product revenues to external customers		$	51,188			$	36,199			$	—			$	87,387
Service revenues to external customers			5,666				14,750				—				20,416
Total revenues to external customers			56,854				50,949				—				107,803
Operating income (loss)			9,556				9,729				(1,013	)			18,272
Total assets			212,928				224,058				313,605				750,591

(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.

										Corporate and
		Food				Animal				Eliminations
(in thousands)		Safety				Safety				(1)				Total
As of and for the six months ended November 30, 2020
Product revenues to external customers		$	99,986			$	80,486			$	—			$	180,472
Service revenues to external customers			11,733				32,120				—				43,853
Total revenues to external customers			111,719				112,606				—				224,325
Operating income (loss)			16,923				24,411				(3,194	)			38,140
As of and for the six months ended November 30, 2019
Product revenues to external customers		$	97,065			$	72,270			$	—			$	169,335
Service revenues to external customers			10,811				29,081				—				39,892
Total revenues to external customers			107,876				101,351				—				209,227
Operating income (loss)			18,690				18,029				(2,183	)			34,536

(1) Includes elimination of intersegment transactions.

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

		Three months ended								Six months ended
		November 30,								November 30,
(in thousands)		2020				2019				2020				2019
Domestic		$	69,832			$	63,317			$	137,156			$	126,657
International			45,168				44,486				87,169				82,570
Total revenue			115,000				107,803				224,325				209,227

X

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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