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Segment Information
12 Months Ended
May 31, 2019
Segment Information
9.
Segment Information
 
 
 
 
 
 
The Company has
two
reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants, and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities.
Neogen’s international operations in the United Kingdom, Mexico, Brazil, China and India originally focused on the sales and marketing of our Food Safety products, and each of these units reports through the Food Safety segment.
In recent years, these operations have expanded to offer the Company’s complete line of products and services, including those usually associated with the Animal Safety segment such as cleaners, disinfectants, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing management and are reported through the Food Safety segment.
The accounting policies of each of the segments are the same as those described in Note 1.
 
Segment information is as follows:
 
(in thousands)
 
Food Safety
 
 
Animal Safety
 
 
Corporate and

Eliminations (1)
 
 
Total
 
Fiscal 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenues to external customers
 
$
190,675
 
 
$
148,764
 
 
$
 
 
$
339,439
 
Service revenues to external customers
 
 
22,799
 
 
 
51,948
 
 
 
 
 
 
74,747
 
Total revenues to external customers
 
 
213,474
 
 
 
200,712
 
 
 
 
 
 
414,186
 
Operating income (loss)
 
 
39,020
 
 
 
33,875
 
 
 
(4,801
)
 
 
68,094
 
Depreciation and amortization
 
 
9,525
 
 
 
8,099
 
 
 
 
 
 
17,624
 
Total Assets
 
 
206,267
 
 
 
221,950
 
 
 
267,523
 
 
 
695,740
 
Expenditures for long-lived assets
 
 
8,916
 
 
 
5,745
 
 
 
 
 
 
14,661
 
Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenues to external customers
 
$
174,553
 
 
$
156,735
 
 
$
 
 
$
331,288
 
Service revenues to external customers
 
 
19,924
 
 
 
46,718
 
 
 
 
 
 
66,642
 
Total revenues to external customers
 
 
194,477
 
 
 
203,453
 
 
 
 
 
 
397,930
 
Operating income (loss)
 
 
34,561
 
 
 
39,529
 
 
 
(3,896
)
 
 
70,194
 
Depreciation and amortization
 
 
9,083
 
 
 
7,975
 
 
 
 
 
 
17,058
 
Total Assets
 
 
186,570
 
 
 
220,629
 
 
 
210,810
 
 
 
618,009
 
Expenditures for long-lived assets
 
 
10,538
 
 
 
10,408
 
 
 
 
 
 
20,946
 
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenues to external customers
 
$
154,431
 
 
$
148,717
 
 
$
 
 
$
303,148
 
Service revenues to external customers
 
 
15,603
 
 
 
39,526
 
 
 
 
 
 
55,129
 
Total revenues to external customers
 
 
170,034
 
 
 
188,243
 
 
 
 
 
 
358,277
 
Operating income (loss)
 
 
33,971
 
 
 
34,841
 
 
 
(3,867
)
 
 
64,945
 
Depreciation and amortization
 
 
7,088
 
 
 
7,603
 
 
 
 
 
 
14,691
 
Total Assets
 
 
190,895
 
 
 
210,927
 
 
 
126,587
 
 
 
528,409
 
Expenditures for long-lived assets
 
 
10,332
 
 
 
4,246
 
 
 
 
 
 
14,578
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and non-controlling interests.
 
 
 
 
The following table presents the Company’s revenue disaggregated by geographical location:
 
 
 
Year ended May 31
 
 
 
2019
 
 
2018
 
 
 
(in
thousands)
 
Revenues by Geographic Location
 
 
 
 
 
 
 
 
Domestic
 
$248,304
 
 
$248,236
 
International
 
 
165,882
 
 
 
149,694
 
Total revenue
 
 
414,186
 
 
 
397,930