| 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 genetic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides and disinfectants to assist in control of rodents and disease in and around agricultural, food production and other facilities.
These segments are managed separately because they represent strategic business units that offer different products and require different marketing strategies. The Company evaluates performance based on total sales and operating income of the respective segments. The accounting policies 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 | ||||||||||||
|
2013 |
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|
Product revenues to external customers |
$ | 102,971 | $ | 81,163 | $ | 0 | $ | 184,134 | ||||||||
|
Service revenues to external customers |
3,187 | 20,207 | 0 | 23,394 | ||||||||||||
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Total revenues to external customers |
106,158 | 101,370 | 0 | 207,528 | ||||||||||||
|
Operating income (loss) |
27,366 | 15,858 | (2,518 | ) | 40,706 | |||||||||||
|
Depreciation and amortization |
3,874 | 3,537 | 0 | 7,411 | ||||||||||||
|
Interest income |
0 | 0 | 144 | 144 | ||||||||||||
|
Income taxes |
9,182 | 4,770 | 148 | 14,100 | ||||||||||||
|
Total assets |
93,079 | 121,908 | 75,571 | 290,558 | ||||||||||||
|
Expenditures for long-lived assets |
6,046 | 2,851 | 0 | 8,897 | ||||||||||||
|
2012 |
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|
Product revenues to external customers |
$ | 90,460 | $ | 74,450 | $ | 0 | $ | 164,910 | ||||||||
|
Service revenues to external customers |
644 | 18,492 | 0 | 19,136 | ||||||||||||
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|
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|
Total revenues to external customers |
91,104 | 92,942 | 0 | 184,046 | ||||||||||||
|
Operating income (loss) |
23,932 | 12,039 | (2,232 | ) | 33,739 | |||||||||||
|
Depreciation and amortization |
3,500 | 2,673 | 0 | 6,173 | ||||||||||||
|
Interest income |
0 | 0 | 107 | 107 | ||||||||||||
|
Income taxes |
7,795 | 3,589 | 66 | 11,450 | ||||||||||||
|
Total assets |
62,227 | 106,987 | 82,386 | 251,600 | ||||||||||||
|
Expenditures for long-lived assets |
4,633 | 7,780 | 0 | 12,413 | ||||||||||||
|
2011 |
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|
Product revenues to external customers |
$ | 85,514 | $ | 69,150 | $ | 0 | $ | 154,664 | ||||||||
|
Service revenues to external customers |
0 | 18,019 | 0 | 18,019 | ||||||||||||
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|
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|
Total revenues to external customers |
85,514 | 87,169 | 0 | 172,683 | ||||||||||||
|
Operating income (loss) |
24,305 | 13,342 | (1,812 | ) | 35,835 | |||||||||||
|
Depreciation and amortization |
3,251 | 2,078 | 0 | 5,329 | ||||||||||||
|
Interest income |
0 | 0 | 95 | 95 | ||||||||||||
|
Income taxes (benefit) |
8,410 | 4,617 | (627 | ) | 12,400 | |||||||||||
|
Total assets |
78,373 | 90,832 | 50,457 | 219,662 | ||||||||||||
|
Expenditures for long-lived assets |
4,908 | 2,888 | 0 | 7,796 | ||||||||||||
| (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 noncontrolling interests. |
Revenues to customers located outside the United States amounted to $83,171,000 or 40.1% of consolidated revenues in 2013, $76,672,000 or 41.7% in 2012 and $72,724,000 or 42.1% in 2011 and were derived primarily in various countries throughout Europe, Canada, and the geographic areas of South and Central America and Asia. No customer represented revenues in excess of 10% of consolidated net sales in any of the three years. The United States based operations represent 95% of the Company’s long-lived assets as of May 31, 2013 and 96% as May 31, 2012.