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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 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 we do 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 December 31, 2021 due to the acquisition of scil.

Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands):
Year Ended December 31, 2021North AmericaInternational
 
 
Total
Total revenue$158,898 $94,841 $253,739 
Cost of revenue84,472 63,473 147,945 
Gross profit74,426 31,368 105,794 
Gross margin47%33%42%
Operating income (loss)650 (1,643)(993)
Income (loss) before income taxes2,072 (5,513)(3,441)
Investments in unconsolidated affiliates5,424 — 5,424 
Total assets441,234 162,838 604,072 
Net assets308,973 126,881 435,854 
Capital expenditures700 1,068 1,768 
Depreciation and amortization5,673 7,882 13,555 
Year Ended December 31, 2020North AmericaInternational 
 
Total
Total revenue$131,066 $66,257 $197,323 
Cost of revenue70,163 45,870 116,033 
Gross profit60,903 20,387 81,290 
Gross margin46%31%41%
Operating loss(4,977)(3,215)(8,192)
Loss before income taxes(7,871)(5,922)(13,793)
Investments in unconsolidated affiliates6,704 — 6,704 
Total assets238,550 161,289 399,839 
Net assets156,931 130,122 287,053 
Capital expenditures443 243 686 
Depreciation and amortization4,735 6,650 11,385 
Year Ended December 31, 2019North AmericaInternational 
 
Total
Total revenue$115,423 $7,238 $122,661 
Cost of revenue63,089 5,123 68,212 
Gross profit52,334 2,115 54,449 
Gross margin45%29%44%
Operating income (loss)1,426 (1,099)327 
Loss before income taxes(1,343)(1,240)(2,583)
Investments in unconsolidated affiliates7,424 — 7,424 
Total assets219,402 25,022 244,424 
Net assets133,835 20,699 154,534 
Capital expenditures1,005 39 1,044 
Depreciation and amortization4,788 128 4,916 
The Company measures its geographic revenue information based on the country of origin where the sale occurred. The geographic classification is independent of where the customer resides or where the customer is physically located while using the Company's product. Total revenue by principal geographic area was as follows (in thousands):
 For the Year Ended December 31,
 202120202019
United States$141,588 $120,244 $113,485 
Canada17,310 10,822 1,938 
Germany44,148 29,543 — 
France18,671 12,615 3,473 
Spain14,071 12,995 759 
Italy10,145 5,850 — 
Switzerland3,885 3,343 2,820 
Other International3,921 1,911 186 
Total$253,739 $197,323 $122,661 
Total long-lived assets by principal geographic areas were as follows (in thousands):
 As of December 31,
 202120202019
United States$12,502 $11,805 $14,712 
Canada719 643 — 
Germany12,795 14,630 — 
France3,127 4,205 152 
Spain1,051 1,209 391 
Italy1,966 1,944 — 
Switzerland63 46 33 
Other International1,190 1,060 181 
Total$33,413 $35,542 $15,469 

Revenue from Covetrus represented approximately 8%, 6% and 14% of our consolidated revenue for the years ended December 31, 2021, 2020 and 2019, respectively. Consolidated revenue from Covetrus attributable to our North America segment represented approximately 7%, 5% and 14%, respectively, whereas revenue from Covetrus attributable to our International segment represented 1%, 1%, and 0% for the years ended December 31, 2021, 2020 and 2019, respectively. No other customer accounted for more than 10% of our consolidated revenue for the years ended December 31, 2021, 2020 or 2019.