Operating Segments

3 Months Ended

Oct. 31, 2021

Segment Reporting [Abstract]

Operating Segment Disclosure

OPERATING SEGMENTS

We have two operating segments: (1) Business to Business Products Group and (2) Retail and Wholesale 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; e-commerce retailers; 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, 2021.

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	2021		2020		2021		2020
Cat Litter	$	4,636	$	3,876	$	43,895	$	40,794
Industrial and Sports	—		—		9,120		7,262
Agricultural and Horticultural	6,208		6,987		—		—
Bleaching Clay and Fluids Purification	14,505		12,641		516		519
Animal Health and Nutrition	3,580		4,018		—		—
Net Sales	$	28,929	$	27,522	$	53,531	$	48,575

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, 2021		July 31, 2021
	(in thousands)
Business to Business Products Group	$	69,057	$	69,023
Retail and Wholesale Products Group	109,052		103,268
Unallocated Assets	45,779		55,275
Total Assets	$	223,888	$	227,566

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. In addition, Income from our Business to Business and Retail and Wholesale Products as well as Corporate Expenses for the three months ended October 31, 2020 were adjusted for an immaterial correction of an error. See Note 1 of the Notes to the unaudited Condensed Consolidated Financial Statements.

	For the Three Months Ended October 31,
	Net Sales				Income
	2021		2020		2021		2020
	(in thousands)
Business to Business Products Group	$	28,929	$	27,522	$	6,746	$	7,600
Retail and Wholesale Products Group	53,531		48,575		74		3,550
Net Sales	$	82,460	$	76,097
Corporate Expenses					(6,375)		(5,973)
Income from Operations					445		5,177
Total Other Income (Expense), Net					265		(422)
Income before Income Taxes					710		4,755
Income Tax Expense					(115)		(806)
Net Income					595		3,949
Net Income (Loss) Attributable to Noncontrolling Interest					10		(35)
Net Income Attributable to Oil-Dri					$	585	$	3,984