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Segment Information and Geographic Data
 9 Months Ended
Feb. 28, 2023
Segment Information and Geographic Data

6. 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. All new product revenues from the merger of the 3M FSD, effective September 1, 2022, are reported through the Food Safety segment. 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 Food Safety 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 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:

 

(in thousands)

 

Food
Safety

 

 

Animal
Safety

 

 

Corporate and
Eliminations (1)

 

 

Total

 

As of and during the three months ended February 28, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues to external customers

 

$

144,843

 

 

$

45,845

 

 

$

—

 

 

$

190,688

 

Service revenues to external customers

 

 

6,699

 

 

 

20,868

 

 

 

—

 

 

 

27,567

 

Total revenues to external customers

 

$

151,542

 

 

$

66,713

 

 

$

—

 

 

$

218,255

 

Operating income (loss)

 

$

11,011

 

 

$

10,752

 

 

$

(6,079

)

 

$

15,684

 

Total assets

 

$

3,975,921

 

 

$

349,628

 

 

$

183,215

 

 

$

4,508,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and during the three months ended February 28, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues to external customers

 

$

55,372

 

 

$

46,194

 

 

$

—

 

 

$

101,566

 

Service revenues to external customers

 

 

7,384

 

 

 

19,294

 

 

 

—

 

 

 

26,678

 

Total revenues to external customers

 

$

62,756

 

 

$

65,488

 

 

$

—

 

 

$

128,244

 

Operating income (loss)

 

$

8,191

 

 

$

10,783

 

 

$

(12,597

)

 

$

6,377

 

Total assets

 

$

302,605

 

 

$

298,854

 

 

$

379,746

 

 

$

981,205

 
(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.

 

(in thousands)

 

Food
Safety

 

 

Animal
Safety

 

 

Corporate and
Eliminations (1)

 

 

Total

 

As of and during the nine months ended February 28, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues to external customers

 

$

356,856

 

 

$

143,941

 

 

$

—

 

 

$

500,797

 

Service revenues to external customers

 

 

20,672

 

 

 

59,168

 

 

 

—

 

 

 

79,840

 

Total revenues to external customers

 

$

377,528

 

 

$

203,109

 

 

$

—

 

 

$

580,637

 

Operating income (loss)

 

$

41,053

 

 

$

35,439

 

 

$

(62,402

)

 

$

14,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and during the nine months ended February 28, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues to external customers

 

$

171,440

 

 

$

140,261

 

 

$

—

 

 

$

311,701

 

Service revenues to external customers

 

 

21,170

 

 

 

54,195

 

 

 

—

 

 

 

75,365

 

Total revenues to external customers

 

$

192,610

 

 

$

194,456

 

 

$

—

 

 

$

387,066

 

Operating income (loss)

 

$

29,216

 

 

$

36,246

 

 

$

(24,871

)

 

$

40,591

 
(1)
Includes elimination of intersegment transactions.

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

 

 

Three Months Ended February 28,

 

 

Nine Months Ended February 28,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Domestic

 

$

109,919

 

 

$

77,297

 

 

$

304,974

 

 

$

231,454

 

International

 

 

108,336

 

 

 

50,947

 

 

 

275,663

 

 

 

155,612

 

Total revenue

 

$

218,255

 

 

$

128,244

 

 

$

580,637

 

 

$

387,066