. Segment Information

Our business consists of

two

segments for financial reporting purposes. The

two

segments are identified as (i) private-label contract manufacturing, which primarily relates to the provision of private-label contract manufacturing services to companies that market and distribute nutritional supplements and other health care products, and (ii) patent and trademark licensing, which primarily includes direct raw material sales and royalty income from our license and supply agreements associated with the sale and use of beta-alanine under our CarnoSyn® and SR CarnoSyn® trade names.

We evaluate performance based on a number of factors. The primary performance measures for each segment are net sales and income or loss from operations before the allocation of certain corporate level expenses. Operating income or loss for each segment does

not

include corporate general and administrative expenses, interest expense and other miscellaneous income and expense items. Corporate general and administrative expenses include, but are

not

limited to: human resources, corporate legal, finance, information technology, and other corporate level related expenses, which are

not

allocated to any segment. Transfers of raw materials between segments are recorded at cost. The accounting policies of our segments are the same as those described in the summary of significant accounting policies in Note A above and in the consolidated financial statements included in our

2019

Annual Report.

Our operating results by business segment were as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
Net Sales
Private label contract manufacturing	$	24,831	$	31,660	$	50,841	$	62,747
Patent and trademark licensing		4,272		4,383		7,457		9,828
Total Net Sales	$	29,103	$	36,043	$	58,298	$	72,575

	Three Months Ended December 31,						Six Months Ended December 31,
	2019			2018			2019			2018
Income from Operations
Private label contract manufacturing	$	1,697		$	2,853		$	3,312		$	5,999
Patent and trademark licensing		842			1,475			1,054			3,276
Income from operations of reportable segments		2,539			4,328			4,366			9,275
Corporate expenses not allocated to segments		(1,841	)		(2,121	)		(3,723	)		(4,344	)
Total Income from Operations	$	698		$	2,207		$	643		$	4,931

	Dec ember 31, 2019		June 30, 201 9
Total Assets
Private-label contract manufacturing	$	89,666	$	74,431
Patent and trademark licensing		19,855		19,059
	$	109,521	$	93,490

Our private-label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Australia, New Zealand, and Asia. Our primary markets outside the U.S. are Europe and Asia. Our patent and trademark licensing activities are primarily based in the U.S.

Net sales by geographic region, based on the customers’ location, were as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018

United States	$	17,591	$	18,549	$	35,776	$	36,195
Markets outside of the United States		11,512		17,494		22,522		36,380
Total	$	29,103	$	36,043	$	58,298	$	72,575

Products manufactured by our Swiss subsidiary ("NAIE") accounted for

91%

of net sales in markets outside the U.S. for the

three

months ended

December 31, 2019

and

90%

for the

six

months ended

December 31, 2019.

Products manufactured by NAIE accounted for

90%

of net sales in markets outside the U.S. for the

three

months ended

December 31, 2018

and

80%

for the

six

months ended

December 31, 2018.

products manufactured by NAIE were sold in U.S. markets during the

three

six

month periods ended

December 31, 2019

and

2018.

Long-lived assets by geographic region, based on the location of the company or subsidiary at which they were located or made, were as follows (in thousands):

	December 31, 2019		June 30, 2019
United States	$	22,303	$	10,977
Europe		17,833		10,108
Total Long-Lived Assets	$	40,136	$	21,085

As a result of the implementation of ASC

842,

operating lease right-of-use assets are now recorded as part of long-lived assets for segment reporting.

Total assets by geographic region, based on the location of the company or subsidiary at which they were located or made, were as follows (in thousands):

	Dec ember 3 1 , 2019		June 30, 2019
United States	$	61,620	$	54,785
Europe		47,901		38,705
Total Assets	$	109,521	$	93,490

Capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, were as follows (in thousands):

	Six Months Ended
	Dec ember 3 1 , 2019		Dec ember 3 1 , 2018
United States	$	578	$	708
Europe		1,055		1,954
Total Capital Expenditures	$	1,633	$	2,662