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Segment Information
 12 Months Ended
May 31, 2023
Segment Information

10. 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 rodent control products, disinfectants and insect control products 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, Guatemala, Brazil, Argentina, Uruguay, Chile, 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, rodent control products, insect control products, 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. 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. "Summary of Significant Accounting Policies".

Segment information is as follows:

 

 

Food Safety

 

 

Animal Safety

 

 

Corporate and
Eliminations (1)

 

 

Total

 

Fiscal 2023

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues, net to external customers

 

$

518,488

 

 

$

196,588

 

 

$

—

 

 

$

715,076

 

Service revenues, net to external customers

 

 

28,309

 

 

 

79,062

 

 

 

—

 

 

 

107,371

 

Total revenues to external customers

 

 

546,797

 

 

 

275,650

 

 

 

—

 

 

 

822,447

 

Operating income (loss)

 

 

60,414

 

 

 

43,332

 

 

 

(66,231

)

 

 

37,515

 

Depreciation and amortization

 

 

76,841

 

 

 

11,536

 

 

 

—

 

 

 

88,377

 

Interest expense

 

 

—

 

 

 

—

 

 

 

55,961

 

 

 

55,961

 

Total assets

 

 

3,970,356

 

 

 

338,507

 

 

 

245,569

 

 

 

4,554,432

 

Expenditures for long-lived assets

 

 

52,169

 

 

 

13,588

 

 

 

—

 

 

 

65,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues, net to external customers

 

$

231,626

 

 

$

193,038

 

 

$

—

 

 

$

424,664

 

Service revenues, net to external customers

 

 

28,353

 

 

 

74,142

 

 

 

—

 

 

 

102,495

 

Total revenues to external customers

 

 

259,979

 

 

 

267,180

 

 

 

—

 

 

 

527,159

 

Operating income (loss)

 

 

38,581

 

 

 

52,546

 

 

 

(32,509

)

 

 

58,618

 

Depreciation and amortization

 

 

13,386

 

 

 

10,308

 

 

 

—

 

 

 

23,694

 

Interest expense

 

 

—

 

 

 

—

 

 

 

72

 

 

 

72

 

Total assets

 

 

304,461

 

 

 

307,417

 

 

 

381,051

 

 

 

992,929

 

Expenditures for long-lived assets

 

 

7,842

 

 

 

16,939

 

 

 

—

 

 

 

24,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2021

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues, net to external customers

 

$

209,104

 

 

$

167,198

 

 

$

—

 

 

$

376,302

 

Service revenues, net to external customers

 

 

25,140

 

 

 

67,017

 

 

 

—

 

 

 

92,157

 

Total revenues to external customers

 

 

234,244

 

 

 

234,215

 

 

 

—

 

 

 

468,459

 

Operating income (loss)

 

 

33,725

 

 

 

48,685

 

 

 

(8,241

)

 

 

74,169

 

Depreciation and amortization

 

 

11,575

 

 

 

9,466

 

 

 

—

 

 

 

21,041

 

Interest expense

 

 

—

 

 

 

—

 

 

 

78

 

 

 

78

 

Total assets

 

 

295,065

 

 

 

244,039

 

 

 

381,088

 

 

 

920,192

 

Expenditures for long-lived assets

 

 

13,730

 

 

 

12,982

 

 

 

—

 

 

 

26,712

 

 

(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.

Revenue is determined by location of the end customer. The following table presents the Company’s revenue disaggregated by geographical location.

 

 

Year ended May 31

 

 

 

2023

 

 

2022

 

 

2021

 

Domestic

 

$

424,005

 

 

$

317,820

 

 

$

285,262

 

International

 

 

398,442

 

 

 

209,339

 

 

 

183,197

 

Total revenue

 

$

822,447

 

 

$

527,159

 

 

$

468,459

 

 

The following table presents the Company's net property and equipment amounts disaggregated by country.

 

 

Year ended May 31

 

 

 

2023

 

 

2022

 

United States

 

$

130,967

 

 

$

63,313

 

United Kingdom

 

 

20,123

 

 

 

14,204

 

Other

 

 

47,659

 

 

 

33,067

 

Total PPE

 

$

198,749

 

 

$

110,584