OPERATING SEGMENTS

We have two 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. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018.

Net sales for our principal products by segment are as follows (in thousands):



	Business to Business Products Group				Retail and Wholesale Products Group
	For the Three Months Ended October 31,
Product	2018		2017		2018		2017
Cat Litter	$	3,215	$	3,800	$	32,395	$	30,822
Industrial and Sports	—		—		7,777		8,117
Agricultural and Horticultural	6,052		6,043		—		—
Bleaching Clay and Fluids Purification	11,895		12,617		645		620
Animal Health and Nutrition	4,164		4,627		—		—
Net Sales	$	25,326	$	27,087	$	40,817	$	39,559

We do not rely on any 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.



	Assets
	October 31, 2018		July 31, 2018
	(in thousands)
Business to Business Products Group	$	61,626	$	65,143
Retail and Wholesale Products Group	94,271		89,623
Unallocated Assets	41,054		39,916
Total Assets	$	196,951	$	194,682

Net sales and operating income for each segment are provided below. The corporate expenses line includes 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 estimated annual incentive plan bonus accrual.




	For the Three Months Ended October 31,
	Net Sales				Income (Loss)
	2018		2017		2018			2017
	(in thousands)
Business to Business Products Group	$	25,326	$	27,087	$	7,032		$	8,876
Retail and Wholesale Products Group	40,817		39,559		9			2,365
Net Sales	$	66,143	$	66,646
Corporate Expenses					(6,038		)	(7,026		)
Income from Operations					1,003			4,215
Total Other Expense, Net					(119		)	(376		)
Income before Income Taxes					884			3,839
Income Tax Benefit (Expense)					50			(789		)
Net Income					934			3,050
Net Income Attributable to Noncontrolling Interest					28			—
Net Income Attributable to Oil-Dri					$	906		$	3,050