OPERATING SEGMENTS

We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products.

Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements.

We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual.



					July 31,
					Assets
					2018			2017
					(in thousands)
Business to Business Products					$	65,143		$	65,337
Retail and Wholesale Products					89,623			90,508
Unallocated assets (1)					39,916			56,730
Total Assets					$	194,682		$	212,575

	Year Ended July 31,
	Net Sales				Income
	2018		2017		2018			2017
	(in thousands)
Business to Business Products	$	105,043	$	100,419	$	35,120		$	33,343
Retail and Wholesale Products	160,957		161,888		6,975			6,775
Net Sales	$	266,000	$	262,307
Corporate Expenses					(27,425		)	(24,888		)
Income from Operations					14,670			15,230
Total Other Income (Expense), Net					196			(685		)
Income Before Income Taxes					14,866			14,545
Income Tax Expense					(6,644		)	(3,753		)
Net Income					$	8,222		$	10,792
Net Loss Attributable to Noncontrolling Interest					$	(18	)	$	—
Net Income Attributable to Oil-Dri					$	8,240		$	10,792

The following is a summary by fiscal year of financial information by geographic region (in thousands):



	2018			2017
Sales to unaffiliated customers by:
Domestic operations	$	254,158		$	249,772
Foreign subsidiaries	$	11,842		$	12,535
Sales or transfers between geographic areas:
Domestic operations	$	5,570		$	5,842
Income before income taxes:
Domestic operations	$	14,742		$	14,524
Foreign subsidiaries	$	124		$	21
Net Income (Loss) attributable to Oil-Dri:
Domestic operations	$	8,249		$	10,833
Foreign subsidiaries	$	(9	)	$	(41	)
Identifiable assets:
Domestic operations (1)	$	185,361		$	204,547
Foreign subsidiaries	$	9,321		$	8,028

(1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by new guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost. See Note 1 of the Notes to the Consolidated Financial Statements for details.

Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below:



	2018	2017
Net sales for the years ended July 31	18%	20%
Net accounts receivable as of July 31	26%	28%

There are no other customers with sales equal to or greater than 10% of our total sales.