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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
On April 1, 2020, Heska completed the acquisition of scil. Following this acquisition, the Company restructured its 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 the Company's operations in the United States, Canada and Mexico and the International segment is comprised of geographies outside of North America, which are the Company's 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. However, there are certain corporate expenses included in the North America segment that the Company does not allocate. Such expenses include research and development, certain selling, marketing, general, and administrative costs that support the global organization. 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 included in Part II. Item 8 of Heska's Annual Report on Form 10-K for the year ended December 31, 2019.
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, 2021 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, 2021North AmericaInternationalTotal
Total revenue$37,809 $22,431 $60,240 
Cost of revenue20,034 14,962 34,996 
Gross profit$17,775 $7,469 $25,244 
Gross margin47 %33 %42 %
Operating loss$(1,645)$(788)$(2,433)
Three Months Ended September 30, 2020North AmericaInternationalTotal
Total revenue$34,450 $22,186 $56,636 
Cost of revenue17,820 15,412 33,232 
Gross profit$16,630 $6,774 $23,404 
Gross margin48 %31 %41 %
Operating (loss) income$(10)$213 $203 
Nine Months Ended September 30, 2021North AmericaInternationalTotal
Total revenue$115,614 $70,057 $185,671 
Cost of revenue60,908 46,777 107,685 
Gross profit$54,706 $23,280 $77,986 
Gross margin47 %33 %42 %
Operating loss$(484)$(1,627)$(2,111)
Nine Months Ended September 30, 2020North AmericaInternationalTotal
Total revenue$91,081 $41,920 $133,001 
Cost of revenue49,187 29,098 78,285 
Gross profit$41,894 $12,822 $54,716 
Gross margin46 %31 %41 %
Operating loss$(7,172)$(1,699)$(8,871)


Asset information by reportable segment as of September 30, 2021 is as follows (in thousands):
As of September 30, 2021North AmericaInternationalTotal
Total assets$435,246 $161,948 $597,194 
Asset information by reportable segment as of December 31, 2020 is as follows (in thousands):
As of December 31, 2020North AmericaInternationalTotal
Total assets$238,550 $161,289 $399,839