SEGMENT REPORTING

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

SEGMENT REPORTING

5. SEGMENT REPORTING

The Company is comprised of two reportable segments, Core Companion Animal Health ("CCA") and Other Vaccines, Pharmaceuticals and Products ("OVP"). The Core Companion Animal Health segment includes diagnostic instruments and supplies, as well as single use diagnostic and other tests and pharmaceuticals. The CCA segment also includes digital radiography and ultrasound products along with embedded software and support, data hosting and other services from Heska Imaging. These products are sold directly by the Company as well as through independent third-party distributors and through other distribution relationships. CCA segment products manufactured at the Des Moines, Iowa production facility included in the OVP segment's assets are transferred at cost and are not recorded as revenue for the OVP segment. The Other Vaccines, Pharmaceuticals and Products segment includes private label vaccine and pharmaceutical production, primarily for cattle, but also for other animals including small mammals. All OVP products are sold by third parties under third-party labels.

Summarized financial information concerning the Company's reportable segments is shown in the following table (in thousands):

		Core Companion Animal Health				Other Vaccines, Pharmaceuticals and Products	Total
Six Months Ended June 30, 2014:
	Total revenue	$	34,852		$	8,857	$	43,709
	Operating income (loss)		(265	)		1,081		816
	Interest expense		74			28		102
	Total assets		81,903			15,214		97,117
	Net assets		39,968			11,715		51,683
	Capital expenditures		1,334			204		1,538
	Depreciation and amortization		1,231			386		1,617
Six Months Ended June 30, 2015:
	Total revenue	$	40,329		$	6,475	$	46,804
	Operating income		2,071			779		2,850
	Interest expense		80			23		103
	Total assets		88,254			14,652		102,906
	Net assets		43,989			12,607		56,596
	Capital expenditures		449			487		936
	Depreciation and amortization		1,724			350		2,074

		Core Companion Animal Health			Other Vaccines, Pharmaceuticals and Products	Total
Three Months Ended June 30, 2014:
	Total revenue	$	17,486	$	5,430	$	22,916
	Operating income		43		874		917
	Interest expense		37		15		52
	Total assets		81,903		15,214		97,117
	Net assets		39,968		11,715		51,683
	Capital expenditures		123		98		221
	Depreciation and amortization		688		200		888
Three Months Ended June 30, 2015:
	Total revenue	$	20,757	$	3,153	$	23,910
	Operating income		1,536		293		1,829
	Interest expense		40		11		51
	Total assets		88,254		14,652		102,906
	Net assets		43,989		12,607		56,596
	Capital expenditures		142		189		331
	Depreciation and amortization		894		174		1,068