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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
On April 1, 2020, Heska completed the acquisition of scil. Following this acquisition, we restructured our operating segments based on how the Chief Operating Decision Maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance. The CODM changed how he assesses performance and allocates resources based on geographic regions in order to better align with the global operations of the Company. Based on this change, the Company determined it has two reportable segments and revised prior comparative periods to conform to the current period segment presentation. The Company’s two segments are North America and International.
The North America segment is comprised of our operations in the United States, Canada and Mexico and the International segment is comprised of geographies outside of North America, which are our operations primarily in Australia, France, Germany, Italy, Malaysia, Spain and Switzerland. Certain expenses incurred at the Company’s headquarters located in the North America segment are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. The Company's sales are determined by the country of origin where the sale occurred. For a description of Heska's previous operating segments, refer to Note 17 to the consolidated financial statements of Heska's 2019 Annual Report on Form 10-K.
Our CODM continues to evaluate segment performance and allocate resources based on Revenue, Cost of Revenue, Gross Profit, Gross Margin and Operating Income. The CODM does not evaluate operating segments using asset information; however, we have included total asset information by segment below as there was a material change in total assets by segment as of September 30, 2020 due to the acquisition of scil.
Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands):
Three Months Ended September 30, 2020North AmericaInternationalTotal
Total revenue$34,450 $22,186 $56,636 
Cost of revenue17,820 15,412 33,232 
Gross profit16,630 6,774 23,404 
Gross margin48 %31 %41 %
Operating income (loss)(10)213 203 
Three Months Ended September 30, 2019North AmericaInternationalTotal
Total revenue$29,605 $1,632 $31,237 
Cost of revenue16,590 983 17,573 
Gross profit13,015 649 13,664 
Gross margin44 %40 %44 %
Operating income (loss)362 (169)193 
Nine Months Ended September 30, 2020North AmericaInternationalTotal
Total revenue$91,081 $41,920 $133,001 
Cost of revenue49,187 29,098 78,285 
Gross profit41,894 12,822 54,716 
Gross margin46 %31 %41 %
Operating loss(7,172)(1,699)(8,871)

Nine Months Ended September 30, 2019North AmericaInternationalTotal
Total revenue$84,492 $4,402 88,894 
Cost of revenue47,224 3,051 50,275 
Gross profit37,268 1,351 38,619 
Gross margin44 %31 %43 %
Operating income (loss)203 (651)(448)

Asset information by reportable segment as of September 30, 2020 is as follows (in thousands):
As of September 30, 2020North AmericaInternationalTotal
Total assets$228,466 $155,409 $383,875 

Asset information by reportable segment as of December 31, 2019 is as follows (in thousands):
As of December 31, 2019North AmericaInternationalTotal
Total assets$219,402 $25,022 $244,424