SEGMENT REPORTING

9 Months Ended

Sep. 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
Nine Months Ended September 30, 2014:
	Total revenue	$	51,223		$	14,291	$	65,514
	Operating income (loss)		(545	)		1,702		1,157
	Income before income taxes		(473	)		1,661		1,188
	Total assets		82,294			14,790		97,084
	Net assets		40,948			10,383		51,331
	Capital expenditures		1,523			252		1,775
	Depreciation and amortization		2,021			573		2,594
Nine Months Ended September 30, 2015:
	Total revenue	$	61,312		$	13,526	$	74,838
	Operating income		2,768			2,224		4,992
	Income before income taxes		2,703			2,184		4,887
	Total assets		88,228			17,804		106,032
	Net assets		46,696			12,463		59,159
	Capital expenditures		677			1,299		1,976
	Depreciation and amortization		2,712			528		3,240

		Core Companion Animal Health				Other Vaccines, Pharmaceuticals and Products	Total
Three Months Ended September 30, 2014:
	Total revenue	$	16,371		$	5,434	$	21,805
	Operating income (loss)		(280	)		621		341
	Income before income taxes		(227	)		608		381
	Total assets		82,294			14,790		97,084
	Net assets		40,948			10,383		51,331
	Capital expenditures		189			48		237
	Depreciation and amortization		790			187		977
Three Months Ended September 30, 2015:
	Total revenue	$	20,983		$	7,051	$	28,034
	Operating income		697			1,445		2,142
	Income before income taxes		782			1,429		2,211
	Total assets		88,228			17,804		106,032
	Net assets		46,696			12,463		59,159
	Capital expenditures		228			812		1,040
	Depreciation and amortization		988			178		1,166