Phibro Animal Health (PAHC) 10-Q 3 Feb 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Jan. 28, 2020
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	PHIBRO ANIMAL HEALTH CORP
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001069899
Amendment Flag	false
Trading Symbol	pahc
Common stock-Class A
Entity Common Stock, Shares Outstanding		20,287,574
Common stock-Class B
Entity Common Stock, Shares Outstanding		20,166,034

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 214,012	$ 218,223	$ 403,732	$ 418,376
Cost of goods sold	144,908	149,579	276,965	283,927
Gross profit	69,104	68,644	126,767	134,449
Selling, general and administrative expenses	49,495	42,938	97,011	85,890
Operating income	19,609	25,706	29,756	48,559
Interest expense, net	3,432	3,015	6,786	5,798
Foreign currency (gains) losses, net	(718)	2,617	2,503	(18)
Income before income taxes	16,895	20,074	20,467	42,779
Provision for income taxes	5,001	5,326	6,058	11,717
Net income	$ 11,894	$ 14,748	$ 14,409	$ 31,062
Net income per share
basic (in dollars per share)	$ 0.29	$ 0.37	$ 0.36	$ 0.77
diluted (in dollars per share)	$ 0.29	$ 0.36	$ 0.36	$ 0.77
Weighted average common shares outstanding
basic (in shares)	40,454	40,383	40,454	40,376
diluted (in shares)	40,504	40,523	40,504	40,523

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 11,894	$ 14,748	$ 14,409	$ 31,062
Change in fair value of derivative instruments	1,080	(2,243)	(4)	(1,702)
Foreign currency translation adjustment	2,203	4,163	(4,620)	(3,519)
Unrecognized net pension gains (losses)	138	124	258	232
(Provision) benefit for income taxes	(303)	527	(63)	365
Other comprehensive income (loss)	3,118	2,571	(4,429)	(4,624)
Comprehensive income (loss)	$ 15,012	$ 17,319	$ 9,980	$ 26,438

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
ASSETS
Cash and cash equivalents	$ 26,180	$ 57,573
Short-term investments	49,000	24,000
Accounts receivable, net	147,441	159,022
Inventories, net	193,509	198,322
Other current assets	29,357	27,245
Total current assets	445,487	466,162
Property, plant and equipment, net	144,733	140,235
Intangibles, net	75,541	47,478
Goodwill	52,679	27,348
Other assets	69,878	45,448
Total assets	788,318	726,671
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	15,625	12,540
Accounts payable	58,263	73,189
Accrued expenses and other current liabilities	73,171	68,498
Total current liabilities	147,059	154,227
Revolving credit facility	149,000	96,000
Long-term debt	208,446	217,635
Other liabilities	66,398	42,794
Total liabilities	570,903	510,656
Commitments and contingencies (Note 9)
Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,287,574 shares issued and outstanding at December 31, 2019 and June 30, 2019; 30,000,000 Class B shares authorized, 20,166,034 shares issued and outstanding at December 31, 2019 and June 30, 2019	4	4
Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding
Paid-in capital	134,395	133,266
Retained earnings	173,626	168,926
Accumulated other comprehensive income (loss)	(90,610)	(86,181)
Total stockholders' equity	217,415	216,015
Total liabilities and stockholders' equity	$ 788,318	$ 726,671

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2019	Jun. 30, 2019
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	16,000,000	16,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock-Class A
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	20,287,574	20,287,574
Common stock, shares outstanding	20,287,574	20,287,574
Common stock-Class B
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	20,166,034	20,166,034
Common stock, shares outstanding	20,166,034	20,166,034

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OPERATING ACTIVITIES
Net income	$ 14,409	$ 31,062
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization	15,929	13,532
Amortization of debt issuance costs and debt discount	442	441
Stock-based compensation	1,129	1,129
Acquisition-related costs of goods sold	280
Acquisition-related accrued interest	132
Deferred income taxes	(565)	135
Foreign currency (gains) losses, net	(132)	12
Other	374	(1,071)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable, net	12,906	(8,906)
Inventories, net	3,412	(16,278)
Other current assets	(2,300)	(3,616)
Other assets	(1,395)	866
Accounts payable	(14,108)	5,169
Accrued expenses and other liabilities	(1,992)	(5,839)
Net cash (used) provided by operating activities	28,521	16,636
INVESTING ACTIVITIES
Purchases of short-term investments	(25,000)	(10,000)
Maturities of short-term investments		11,000
Capital expenditures	(16,115)	(12,117)
Business acquisitions	(54,549)	(9,838)
Other, net	(1,045)	27
Net cash (used) by investing activities	(96,709)	(20,928)
FINANCING ACTIVITIES
Revolving credit facility borrowings	155,000	103,000
Revolving credit facility repayments	(102,000)	(85,000)
Payments of long-term debt and other	(6,361)	(6,359)
Issuance of acquisition note payable		3,775
Proceeds from common shares issued		341
Dividends paid	(9,709)	(8,883)
Net cash used by financing activities	36,930	6,874
Effect of exchange rate changes on cash	(135)	(414)
Net increase (decrease) in cash and cash equivalents	(31,393)	2,168
Cash and cash equivalents at beginning of period	57,573	29,168
Cash and cash equivalents at end of period	$ 26,180	$ 31,336

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Jun. 30, 2018	$ 4	$ 129,873	$ 131,560	$ (76,483)	$ 184,954
Balance (in shares) at Jun. 30, 2018	40,357,708
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new revenue standard			1,245		1,245
Comprehensive income (loss)			16,314	(7,195)	9,119
Exercise of stock options		211			211
Exercise of stock options (in shares)	17,860
Dividends declared			(4,037)		(4,037)
Stock-based compensation expense		565			565
Balance at Sep. 30, 2018	$ 4	130,649	145,082	(83,678)	192,057
Balance (in shares) at Sep. 30, 2018	40,375,568
Balance at Jun. 30, 2018	$ 4	129,873	131,560	(76,483)	184,954
Balance (in shares) at Jun. 30, 2018	40,357,708
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)					26,438
Balance at Dec. 31, 2018	$ 4	131,343	154,984	(81,107)	205,224
Balance (in shares) at Dec. 31, 2018	40,386,568
Balance at Sep. 30, 2018	$ 4	130,649	145,082	(83,678)	192,057
Balance (in shares) at Sep. 30, 2018	40,375,568
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)			14,748	2,571	17,319
Exercise of stock options		130			130
Exercise of stock options (in shares)	11,000
Dividends declared			(4,846)		(4,846)
Stock-based compensation expense		564			564
Balance at Dec. 31, 2018	$ 4	131,343	154,984	(81,107)	205,224
Balance (in shares) at Dec. 31, 2018	40,386,568
Balance at Jun. 30, 2019	$ 4	133,266	168,926	(86,181)	216,015
Balance (in shares) at Jun. 30, 2019	40,453,608
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)			2,515	(7,547)	(5,032)
Dividends declared			(4,854)		(4,854)
Stock-based compensation expense		565			565
Balance at Sep. 30, 2019	$ 4	133,831	166,587	(93,728)	206,694
Balance (in shares) at Sep. 30, 2019	40,453,608
Balance at Jun. 30, 2019	$ 4	133,266	168,926	(86,181)	216,015
Balance (in shares) at Jun. 30, 2019	40,453,608
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)					9,980
Balance at Dec. 31, 2019	$ 4	134,395	173,626	(90,610)	217,415
Balance (in shares) at Dec. 31, 2019	40,453,608
Balance at Sep. 30, 2019	$ 4	133,831	166,587	(93,728)	206,694
Balance (in shares) at Sep. 30, 2019	40,453,608
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)			11,894	3,118	15,012
Dividends declared			(4,855)		(4,855)
Stock-based compensation expense		564			564
Balance at Dec. 31, 2019	$ 4	$ 134,395	$ 173,626	$ (90,610)	$ 217,415
Balance (in shares) at Dec. 31, 2019	40,453,608

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends declared per share	$ 0.12	$ 0.12	$ 0.12	$ 0.10

Description of Business

Description of Business	6 Months Ended
	Dec. 31, 2019
Description of Business
Description of Business	1. Description of Business Phibro Animal Health Corporation (“Phibro” or “PAHC”) and its subsidiaries (together, the “Company”) is a diversified global developer, manufacturer and marketer of a broad range of animal health and mineral nutrition products for food animals including poultry, swine, dairy and beef cattle, and aquaculture. The Company is also a manufacturer and marketer of performance products for use in the personal care, industrial chemical and chemical catalyst industries. Unless otherwise indicated or the context requires otherwise, references in this report to “we,” “our,” “us,” and similar expressions refer to Phibro and its subsidiaries. The unaudited consolidated financial information for the three and six months ended December 31, 2019 and 2018, is presented on the same basis as the financial statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended June 30, 2019 (the “Annual Report”), filed with the Securities and Exchange Commission on August 27, 2019 (File no. 001‑36410). In the opinion of management, these financial statements include all adjustments necessary for a fair statement of the financial position, results of operations and cash flows of the Company for the interim periods, and the adjustments are of a normal and recurring nature. The financial results for any interim period are not necessarily indicative of the results for the full year. The consolidated balance sheet information as of June 30, 2019, was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report. The consolidated financial statements include the accounts of Phibro and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated from the consolidated financial statements. The decision whether or not to consolidate an entity requires consideration of majority voting interests, as well as effective control over the entity.

Summary of Significant Accounti

Summary of Significant Accounting Policies and New Accounting Standards	6 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies and New Accounting Standards
Summary of Significant Accounting Policies and New Accounting Standards	2. Summary of Significant Accounting Policies and New Accounting Standards Our significant accounting policies are described in the notes to the consolidated financial statements included in our Annual Report. We adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), effective July 1, 2019. See “New Accounting Standards” and “Note 7—Leases.” As of December 31, 2019, there have been no other material changes to our significant accounting policies. Leases We determine at the inception of an arrangement whether the arrangement contains a lease. If an arrangement contains a lease, we assess the lease term when the underlying asset is available for use (“lease commencement.”) Individual lease terms reflect the non-cancellable period of the lease, reasonably certain renewal periods and consideration of termination options. We determine the lease classification as either operating or financing at lease commencement, which governs the pattern of expense recognition and presentation in our consolidated financial statements. Our current lease portfolio only includes operating leases. We recognize a right-of-use (“ROU”) asset and a corresponding lease liability at lease commencement for leases with terms exceeding twelve months. Short-term leases with terms of twelve months or less are not recognized on the consolidated balance sheet and lease payments are recognized on a straight-line basis over the term. The values of the ROU assets and lease liabilities are calculated based on the present value of the fixed payment obligations over the lease term, using our incremental borrowing rate (“IBR”), determined at lease commencement. The IBR reflects the rate of interest we would expect to pay on a secured basis to borrow an amount equal to the lease payments under similar terms. The IBR incorporates the term and economic environment of the respective lease arrangements. We have elected to account for lease and non-lease components together as a single lease component and include fixed payment obligations related to such non-lease components in the measurement of ROU assets and lease liabilities. Fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments can include index-based lease payments, real estate taxes, maintenance costs, utilization charges and other non-lease services paid to lessors and are not determinable at lease commencement. Variable lease payments are not included in the measurement of ROU assets and lease liabilities and are recognized in the period incurred. Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed exercise of stock options and vesting of restricted stock units. All common share equivalents were included in the calculation of diluted net income per share in the periods included in the consolidated financial statements. Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Net income $ 11,894 $ 14,748 $ 14,409 $ 31,062 Weighted average number of shares – basic 40,454 40,383 40,454 40,376 Dilutive effect of stock options and restricted stock units 50 140 50 147 Weighted average number of shares – diluted 40,504 40,523 40,504 40,523 Net income per share basic $ 0.29 $ 0.37 $ 0.36 $ 0.77 diluted $ 0.29 $ 0.36 $ 0.36 $ 0.77 New Accounting Standards ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , removes certain exceptions and amends certain requirements in the existing income tax guidance to ease accounting requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and must be applied on a retrospective basis. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018‑14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715‑20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , modifies existing disclosure requirements for defined benefit pension and other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020 and must be applied on a retrospective basis. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , modifies existing disclosure requirements for fair value measurement. This ASU is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income allows reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects related to adjustments resulting from the United States Tax Cuts and Jobs Act. This ASU is effective for our consolidated financial statements beginning July 1, 2019. The adoption of this guidance did not have a material effect on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) requires an entity to recognize assets and liabilities on the balance sheet for both financing and operating leases and requires additional qualitative and quantitative disclosures regarding leasing arrangements. We adopted ASU 2016-02 and its amendments effective July 1, 2019, using a modified retrospective transition approach, which does not require modifications to periods prior to the date of initial application. We utilized certain permitted practical expedients intended to ease transition to the new standard, including carrying forward the original lease classifications without reassessment. We did not use hindsight in our assessment of lease terms as of the effective date. Upon adoption of ASU 2016-02 on July 1, 2019, we recognized initial ROU assets and lease liabilities of $18,576 and $19,368 respectively, on the consolidated balance sheet. The difference in the amounts of the ROU assets and lease liabilities recognized relates to landlord incentives and deferred rent. An adjustment to opening retained earnings was not required, and the recognition of lease expense in the consolidated statements of operations did not change significantly. Refer to “Note 7–Leases” for further information.

Acquisition

Acquisition	6 Months Ended
	Dec. 31, 2019
Acquisition
Acquisition	3. Acquisition In August 2019, we acquired the business and assets of Osprey Biotechnics, Inc. (“Osprey”). Osprey is a developer, manufacturer and marketer of microbial products and bioproducts for a variety of applications, serving customers in the animal health and nutrition, environmental, industrial and plant protection industries. The business is included in the Animal Health segment. We acquired assets used in Osprey’s business, including intellectual property, working capital and property, plant and equipment, for an aggregate net cash payment of $54,549. The agreement also includes a future additional payment to be determined based on Osprey’s financial performance for the year ending June 30, 2021. We recorded a $7,553 liability for the estimated future payment. The additional payment will be no less than $4,840 and has no maximum limit. We accounted for the acquisition as a business combination in accordance with FASB Accounting Standards Codification No. 805, Business Combinations . Pro forma information giving effect to the acquisition has not been provided because the results are not material to the consolidated financial statements. The preliminary fair values of the acquired assets and liabilities as of the acquisition date were: Working capital, net $ 2,366 Property, plant and equipment 2,005 Definite-lived intangible assets 32,400 Goodwill 25,331 Net assets acquired $ 62,102 We may further refine the determination of certain assets during the measurement period. The definite-lived intangible assets relate to trade names, developed products and customer relationships and will be amortized over estimated useful lives ranging from five to twelve years. The preliminary amount of goodwill has been allocated to our Animal Health segment and is deductible for income taxes.

Statements of Operations-Additi

Statements of Operations-Additional Information	6 Months Ended
	Dec. 31, 2019
Statements of Operations-Additional Information
Statements of Operations-Additional Information	4 . Statements of Operations—Additional Information We develop, manufacture and market a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. The products help prevent, control and treat diseases, enhance nutrition to help improve health and contribute to balanced mineral nutrition. The animal health and mineral nutrition products are sold directly to integrated poultry, swine and cattle integrators and through commercial animal feed manufacturers, wholesalers and distributors. The animal health industry and demand for many of the animal health products in a particular region are affected by changing disease pressures and by weather conditions, as product usage follows varying weather patterns and seasons. Our operations are primarily focused in regions where the majority of livestock production is consolidated in large commercial farms. We have a diversified portfolio of products that are classified within our three business segments—Animal Health, Mineral Nutrition and Performance Products. Each segment has its own dedicated management and sales team. Animal Health The Animal Health business develops, manufactures and markets products in three main categories: · MFAs and Other: MFAs and other products primarily consist of concentrated medicated products that are administered through animal feeds, commonly referred to as Medicated Feed Additives (“MFAs”). Specific product classifications include antibacterials, which inhibit the growth of pathogenic bacteria that cause bacterial infections in animals; anticoccidials, which inhibit the growth of coccidia (parasites) that damage the intestinal tract of animals; and other related products. · Nutritional Specialties: Nutritional specialty products enhance nutrition to help improve health and performance in areas such as immune system function and digestive health. · Vaccines: Our vaccines are primarily focused on preventing diseases in poultry, swine and cattle. They protect animals from either viral or bacterial disease challenges. We develop, manufacture and market conventionally licensed and autogenous vaccine products and also produce and market adjuvants to vaccine manufacturers. We have developed and market an innovative and proprietary delivery platform for vaccines. Mineral Nutrition The Mineral Nutrition business is comprised of formulations and concentrations of trace minerals such as zinc, manganese, copper, iron and other compounds, with a focus on customers in North America. The customers use these products to fortify the daily feed requirements of their livestock’s diets and maintain an optimal balance of trace elements in each animal. We manufacture and market a broad range of mineral nutrition products for food animals including poultry, swine and beef and dairy cattle. Performance Products The Performance Products business manufactures and markets a number of specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States. The following tables present our revenues disaggregated by major product category and geographic region: Net Sales by Product Type Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Animal Health MFAs and other $ 91,955 $ 93,054 $ 166,989 $ 180,058 Nutritional specialties 33,062 29,460 63,495 56,430 Vaccines 18,672 17,048 35,055 34,263 Total Animal Health $ 143,689 $ 139,562 $ 265,539 $ 270,751 Mineral Nutrition 55,685 62,319 108,334 117,157 Performance Products 14,638 16,342 29,859 30,468 Total $ 214,012 $ 218,223 $ 403,732 $ 418,376 Net Sales by Region Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 United States $ 122,917 $ 126,065 $ 241,404 $ 240,552 Latin America and Canada 42,704 40,273 79,445 79,156 Europe, Middle East and Africa 27,660 26,186 51,353 51,022 Asia Pacific 20,731 25,699 31,530 47,646 Total $ 214,012 $ 218,223 $ 403,732 $ 418,376 Net sales by region are based on country of destination. Deferred revenue was $5,130 and $5,464 as of December 31, 2019 and June 30, 2019, respectively. Accrued expenses and other current liabilities included $1,082 and $965 of the total deferred revenue as of December 31, 2019 and June 30, 2019, respectively. The deferred revenue resulted primarily from certain customer arrangements, including technology licensing fees and discounts on future product sales. The transaction price associated with our deferred revenue arrangements is generally based on the stand alone sales prices of the individual products or services. Our customer payment terms generally range from 30 to 120 days globally and do not include any significant financing components. Payment terms vary based on industry and business practices within the regions in which we operate. Our average worldwide collection period for accounts receivable is approximately 60 to 70 days after the revenue is recognized. Interest Expense and Depreciation and Amortization Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Interest expense, net Term loan $ 2,031 $ 2,202 $ 4,079 $ 4,314 Revolving credit facility 1,530 920 2,961 1,667 Amortization of debt issuance costs and debt discount 221 220 442 441 Acquisition-related accrued interest 79 — 132 — Other 76 120 156 283 Interest expense 3,937 3,462 7,770 6,705 Interest (income) (505) (447) (984) (907) $ 3,432 $ 3,015 $ 6,786 $ 5,798 Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Depreciation and amortization Depreciation of property, plant and equipment $ 5,840 $ 5,308 $ 11,571 $ 10,496 Amortization of intangible assets 2,296 1,521 4,334 3,012 Amortization of other assets 12 12 24 24 $ 8,148 $ 6,841 $ 15,929 $ 13,532

Balance Sheets-Additional Infor

Balance Sheets-Additional Information	6 Months Ended
	Dec. 31, 2019
Balance Sheets Additional Information
Balance Sheets-Additional Information	5. Balance Sheets—Additional Information December 31, June 30, As of 2019 2019 Inventories Raw materials $ 73,394 $ 64,441 Work-in-process 10,489 10,699 Finished goods 109,626 123,182 $ 193,509 $ 198,322 December 31, June 30, As of 2019 2019 Goodwill roll-forward Balance at beginning of period $ 27,348 $ 27,348 Osprey acquisition 25,331 — Balance at end of period $ 52,679 $ 27,348 We evaluate our investments in equity method investees for impairment if circumstances indicate that the fair value of the investment may be impaired. The assets underlying a $3,548 equity investment are currently idled; we have concluded the investment is not currently impaired, based on expected future operating cash flows and/or disposal value. December 31, June 30, As of 2019 2019 Other assets ROU operating lease assets $ 23,115 $ — Deferred income taxes 17,039 16,770 Deposits 6,809 7,024 Insurance investments 5,521 5,431 Equity method investments 4,902 4,196 Indemnification asset 3,000 3,000 Deferred financing fees 1,276 1,531 Other 8,216 7,496 $ 69,878 $ 45,448 December 31, June 30, As of 2019 2019 Accrued expenses and other current liabilities Employee related $ 29,845 $ 28,298 Current operating lease liabilities 6,672 — Commissions and rebates 7,942 8,397 Insurance-related 1,291 1,279 Professional fees 5,222 5,212 Income and other taxes 4,791 6,067 Restructuring costs 2,568 3,590 Other 14,840 15,655 $ 73,171 $ 68,498 During the three months ended June 30, 2019, we initiated business restructuring activities related to productivity and cost saving initiatives in the Animal Health segment. We recorded pre-tax charges of $6,281 for these activities, including $3,500 related to the termination of a contract manufacturing agreement and $2,781 for employee separation charges. As of June 30, 2019, $691 had been paid. During the three months ended September 30, 2019, we recorded $425 related to employee separation charges. The charges are included in selling, general and administrative expenses in our consolidated statements of operations. The following table summarizes the activity of the restructuring liability during the six months ended December 31, 2019: Liability balance at June 30, 2019 $ 5,590 Charges 425 Payments (1,847) Liability balance at December 31, 2019 $ 4,168 As of December 31, 2019, $2,568 was included in accrued expenses and other current liabilities and $1,600 was included in other liabilities. We expect to record an additional charge for employee separation costs of an estimated $500 and plan to complete the additional separation actions by June 30, 2020. December 31, June 30, As of 2019 2019 Other liabilities Long-term operating lease liabilities $ 17,453 $ — Long term and deferred income taxes 9,520 8,978 Supplemental retirement benefits, deferred compensation and other 7,837 7,605 Acquisition-related consideration 7,678 — International retirement plans 5,247 5,133 U.S. pension plan 3,146 3,934 Restructuring costs 1,600 2,000 Other long term liabilities 13,917 15,144 $ 66,398 $ 42,794 December 31, June 30, As of 2019 2019 Accumulated other comprehensive income (loss) Derivative instruments $ (598) $ (594) Foreign currency translation adjustment (75,845) (71,225) Unrecognized net pension gains (losses) (19,792) (20,050) (Provision) benefit for income taxes on derivative instruments 149 148 (Provision) benefit for incomes taxes on long-term intercompany investments 8,166 8,166 (Provision) benefit for income taxes on pension gains (losses) (2,690) (2,626) $ (90,610) $ (86,181)

Debt

Debt	6 Months Ended
	Dec. 31, 2019
Debt
Debt	6. Debt Term Loans and Revolving Credit Facilities Pursuant to a credit agreement (the “Credit Agreement”), we have a revolving credit facility (the “Revolver”), where we can borrow up to $250,000, subject to the terms of the agreement, and a term A loan with an aggregate initial principal amount of $250,000 (the “Term A Loan,” and together with the Revolver, the “Credit Facilities”). The Credit Facilities have applicable margins equal to 2.00%, 1.75% or 1.50%, in the case of LIBOR and Eurodollar rate loans and 1.00%, 0.75% or 0.50%, in the case of base rate loans; the applicable margins are based on the First Lien Net Leverage Ratio, as defined in the Credit Agreement. The LIBOR rate is subject to a floor of 0.00%. The Credit Facilities mature on June 29, 2022. The Credit Facilities require, among other things, the maintenance of (i) a maximum First Lien Net Leverage Ratio and (ii) a minimum consolidated interest coverage ratio, each calculated on a trailing four quarter basis, and contain an acceleration clause should an event of default (as defined in the Credit Agreement) occur. As of December 31, 2019, we were in compliance with the financial covenants. As of December 31, 2019, we had $149,000 in borrowings under the Revolver and had outstanding letters of credit of $2,709, leaving $98,291 available for borrowings and letters of credit under the Revolver. We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The terms of these letters of credit are all less than one year. As of December 31, 2019, the interest rates for the Revolver and the Term A Loan were 3.51% and 3.61%, respectively. The weighted-average interest rates for the outstanding revolving credit facilities were 3.58% and 3.71% for the six months ended December 31, 2019 and 2018, respectively. The weighted-average interest rates for the term loans were 3.46% and 3.47% for the six months ended December 31, 2019 and 2018, respectively. In July 2017, we entered into an interest rate swap agreement on $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt, to a fixed interest rate of 1.8325% plus the applicable rate. The agreement matures concurrent with the Credit Agreement. We designated the interest rate swap as a highly effective cash flow hedge. For additional details, see “—Derivatives.” Long-Term Debt December 31, June 30, As of 2019 2019 Term A Loan due June 2022 $ 225,000 $ 231,250 Other — 40 225,000 231,290 Unamortized debt issuance costs and debt discount (929) (1,115) 224,071 230,175 Less: current maturities (15,625) (12,540) $ 208,446 $ 217,635

Leases

Leases	6 Months Ended
	Dec. 31, 2019
Leases
Leases	7. Leases Our lease portfolio consists of real estate, vehicles and equipment ROU assets, classified as operating leases. As of December 31, 2019, the remaining non-cancelable lease terms, inclusive of renewal options reasonably certain of exercise, range from one to 16 years. The following table summarizes the ROU assets and the related lease liabilities recorded on the consolidated balance sheet: December 31, As of 2019 Balance Sheet Classification Assets: Operating lease ROU assets $ 23,115 Other Assets Liabilities: Current portion 6,672 Accrued expenses and other current liabilities Non-current portion 17,453 Other liabilities Total operating lease liabilities $ 24,125 The following table summarizes the composition of net lease cost: Three months Six months For the Periods Ended December 31 2019 2019 Operating lease expense $ 1,911 $ 3,762 Variable lease expense 307 631 Short-term lease expense 214 417 Total lease cost $ 2,432 $ 4,810 The following tables include other supplemental information: Three months Six months For the Periods Ended December 31 2019 2019 Operating cash flows used for ROU operating leases $ 1,968 $ 3,645 Right of use assets obtained in exchange for new operating lease liabilities $ 3,972 $ 7,762 As of December 31, 2019 Weighted average remaining lease term (in years) - ROU operating leases 6.4 Weighted average discount rate - ROU operating leases 4.17 % At December 31, 2019, maturities of future lease liabilities were: For the Years Ending June 30 2020 $ 3,853 2021 6,627 2022 5,012 2023 2,765 2024 2,283 2025 and thereafter 7,273 Total lease payments 27,813 Less: interest 3,688 Total operating lease liabilities $ 24,125 There were no significant future payment obligations related to executed lease agreements for which the related lease had not yet commenced as of December 31, 2019. Our lease agreements do not contain any material restrictive covenants or residual value guarantee provisions. Future minimum lease payments for operating leases accounted for under ASC 840, " Leases ," with remaining non-cancelable terms in excess of one year at June 30, 2019 were: For the Years Ending June 30 2020 $ 5,815 2021 4,160 2022 3,191 2023 1,445 2024 865 Thereafter 765 Total minimum lease payments $ 16,241

Related Party Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	8. Related Party Transactions Certain relatives of Jack C. Bendheim, our Chairman, President and Chief Executive Officer, provided services to us as employees or consultants and received aggregate compensation and benefits of approximately $390 and $430 during the three months ended December 31, 2019 and 2018, respectively, and $841 and $1,213 during the six months ended December 31, 2019 and 2018, respectively. Mr. Bendheim has sole authority to vote shares of our stock owned by BFI Co., LLC, an investment vehicle of the Bendheim family.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	9 . Commitments and Contingencies Environmental Our operations and properties are subject to extensive federal, state, local and foreign laws and regulations, including those governing pollution; protection of the environment; the use, management, and release of hazardous materials, substances and wastes; air emissions; greenhouse gas emissions; water use, supply and discharges; the investigation and remediation of contamination; the manufacture, distribution, and sale of regulated materials, including pesticides; the importing, exporting and transportation of products; and the health and safety of our employees (collectively, “Environmental Laws”). As such, the nature of our current and former operations exposes us to the risk of claims with respect to such matters, including fines, penalties, and remediation obligations that may be imposed by regulatory authorities. Under certain circumstances, we might be required to curtail operations until a particular problem is remedied. Known costs and expenses under Environmental Laws incidental to ongoing operations, including the cost of litigation proceedings relating to environmental matters, are included within operating results. Potential costs and expenses may also be incurred in connection with the repair or upgrade of facilities to meet existing or new requirements under Environmental Laws or to investigate or remediate potential or actual contamination and from time to time we establish reserves for such contemplated investigation and remediation costs. In many instances, the ultimate costs under Environmental Laws and the time period during which such costs are likely to be incurred are difficult to predict. While we believe that our operations are currently in material compliance with Environmental Laws, we have, from time to time, received notices of violation from governmental authorities, and have been involved in civil or criminal action for such violations. Additionally, at various sites, our subsidiaries are engaged in continuing investigation, remediation and/or monitoring efforts to address contamination associated with historic operations of the sites. We devote considerable resources to complying with Environmental Laws and managing environmental liabilities. We have developed programs to identify requirements under, and maintain compliance with, Environmental Laws; however, we cannot predict with certainty the effect of increased and more stringent regulation on our operations, future capital expenditure requirements, or the cost of compliance. The nature of our current and former operations exposes us to the risk of claims with respect to environmental matters and we cannot assure we will not incur material costs and liabilities in connection with such claims. Based upon our experience to date, we believe that the future cost of compliance with existing Environmental Laws, and liabilities for known environmental claims pursuant to such Environmental Laws, will not have a material adverse effect on our financial position, results of operations, cash flows or liquidity. The United States Environmental Protection Agency (the “EPA”) is investigating and planning for the remediation of offsite contaminated groundwater that has migrated from the Omega Chemical Corporation Superfund Site (“Omega Chemical Site”), which is upgradient of Phibro-Tech’s Santa Fe Springs, California facility. The EPA has named Phibro-Tech and certain other subsidiaries of PAHC as potentially responsible parties (“PRPs”) due to groundwater contamination from Phibro-Tech’s Santa Fe Springs facility that has allegedly commingled with contaminated groundwater from the Omega Chemical Site. In September 2012, the EPA notified approximately 140 PRPs, including Phibro-Tech and the other subsidiaries, that they have been identified as potentially responsible for remedial action for the groundwater plume affected by the Omega Chemical Site and for EPA oversight and response costs. Phibro-Tech contends that any groundwater contamination at its site is localized and due to historical operations that pre-date Phibro-Tech and/or contaminated groundwater that has migrated from upgradient properties. In addition, a successor to a prior owner of the Phibro-Tech site has asserted that PAHC and Phibro-Tech are obligated to provide indemnification for its potential liability and defense costs relating to the groundwater plume affected by the Omega Chemical Site. Phibro-Tech has vigorously contested this position and has asserted that the successor to the prior owner is required to indemnify Phibro-Tech for its potential liability and defense costs. Furthermore, a group of companies that sent chemicals to the Omega Chemical Site for processing and recycling has filed a complaint under CERCLA and RCRA in the United States District Court for the Central District of California against many of the PRPs allegedly associated with the groundwater plume affected by the Omega Chemical Site (including Phibro-Tech) for contribution toward past and future costs associated with the investigation and remediation of the groundwater plume affected by the Omega Chemical Site. Due to the ongoing nature of the EPA’s investigation, the preliminary stage of the ongoing litigation and Phibro-Tech’s dispute with the prior owner’s successor, at this time we cannot predict with any degree of certainty what, if any, liability Phibro-Tech or the other subsidiaries may ultimately have for investigation, remediation and the EPA oversight and response costs associated with the affected groundwater plume. Based upon information available, to the extent such costs can be estimated with reasonable certainty, we estimated the cost for further investigation and remediation of identified soil and groundwater problems at operating sites, closed sites and third-party sites, and closure costs for closed sites, to be approximately $5,096 and $5,890 at December 31, 2019 and June 30, 2019, respectively, which is included in current and long-term liabilities on the consolidated balance sheets. However, future events, such as new information, changes in existing Environmental Laws or their interpretation, and more vigorous enforcement policies of regulatory agencies, may give rise to additional expenditures or liabilities that could be material. For all purposes of the discussion under this caption and elsewhere in this report, it should be noted that we take and have taken the position that neither PAHC nor any of our subsidiaries is liable for environmental or other claims made against one or more of our other subsidiaries or for which any of such other subsidiaries may ultimately be responsible. Claims and Litigation PAHC and its subsidiaries are party to a number of claims and lawsuits arising out of the normal course of business including product liabilities, payment disputes and governmental regulation. Certain of these actions seek damages in various amounts. In many cases, such claims are covered by insurance. We believe that none of the claims or pending lawsuits, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, cash flows or liquidity.

Derivatives

Derivatives	6 Months Ended
	Dec. 31, 2019
Derivatives
Derivatives	10. Derivatives We monitor our exposure to foreign currency exchange rates and interest rates and from time-to-time use derivatives to manage certain of these risks. We designate derivatives as a hedge of a forecasted transaction or of the variability of the cash flows to be received or paid in the future related to a recognized asset or liability (cash flow hedge). All changes in the fair value of a highly effective cash flow hedge are recorded in accumulated other comprehensive income (loss). We routinely assess whether the derivatives used to hedge transactions are effective. If we determine a derivative ceases to be an effective hedge, we discontinue hedge accounting in the period of the assessment for that derivative, and immediately recognize any unrealized gains or losses related to the fair value of that derivative in the consolidated statements of operations. We record derivatives at fair value in the consolidated balance sheets. For additional details regarding fair value, see “—Fair Value Measurements.” We entered into an interest rate swap agreement on $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt, to a fixed interest rate of 1.8325% plus the applicable rate. The agreement matures concurrent with the Credit Agreement. The forecasted transactions are probable of occurring, and the interest rate swap has been designated as a highly effective cash flow hedge. We entered into foreign currency option contracts to hedge cash flows related to monthly inventory purchases. The individual option contracts mature monthly through June 2021. The forecasted inventory purchases are probable of occurring and the individual option contracts were designated as highly effective cash flow hedges. Outstanding derivatives that are designated and effective as cash flow hedges as of December 31, 2019 were: Notional Asset (Liability) Amount at fair value as of December 31, Consolidated December 31, June 30, Instrument Hedge 2019 Balance Sheet 2019 2019 Options Brazilian Real calls R$ 108,000 (1) $ 659 $ 413 Options Brazilian Real puts R$ 108,000 (1) $ (217) $ (30) Swap Interest rate swap $ 150,000 Other liabilities $ (1,040) $ (977) (1) We record the net fair values of our outstanding foreign currency option contracts within the respective balance sheet line item based on the net financial position and maturity date of the individual contracts as of the balance sheet date. Other current assets as of December 31, 2019 and June 30, 2019, included net fair values of $442 and $383, respectively. The following tables show the effects of derivatives on the consolidated statements of operations and other comprehensive income for the three and six months ended December 31, 2019 and 2018. Consolidated Statement Gain (Loss) recognized in consolidated of Operations Line For the Three Months Ended December 31 Gain (Loss) recorded in OCI statements of operations Item Total Consolidated Statement of Instrument Hedge 2019 2018 Operations 2019 2018 2019 2018 Options Brazilian Real calls $ 422 $ 513 Cost of goods sold $ (63) $ — $ 144,908 $ 149,579 Swap Interest rate swap $ 658 $ (2,756) Interest expense, net $ — $ — $ 3,432 $ 3,015 Consolidated Statement Gain (Loss) recognized in of Operations Line For the Six Months Ended December 31 Gain (Loss) recorded in OCI consolidated statements of operations Item Total Consolidated Statement Instrument Hedge 2019 2018 of Operations 2019 2018 2019 2018 Options Brazilian Real calls $ 59 $ 404 Cost of goods sold $ (108) $ 1,084 $ 276,965 $ 283,927 Swap Interest rate swap $ (63) $ (2,106) Interest expense, net $ — $ — $ 6,786 $ 5,798 We recognize gains (losses) related to foreign currency derivatives as a component of cost of goods sold at the time the hedged item is sold.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Fair Value Measurements	11. Fair Value Measurements Short-term investments As of December 31, 2019, our short-term investments consist of cash deposits held at financial institutions. We consider the carrying amounts of these short-term investments to be representative of their fair value. Current Assets and Liabilities We consider the carrying amounts of current assets and current liabilities to be representative of their fair value because of the current nature of these items. Contingent Consideration on Acquisitions We determine the fair value of contingent consideration on acquisitions based on contractual terms, our current forecast of performance factors related to the acquired business and an applicable discount rate. Letters of Credit We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The carrying values of these letters of credit are considered to be representative of their fair values because of the nature of the instruments. Debt We record debt, including term loans and revolver balances, at book value in our consolidated financial statements. We believe the carrying value of the debt is approximately equal to its fair value, due to the variable nature of the instruments. Derivatives We determine the fair value of derivative instruments based upon pricing models using observable market inputs for these types of financial instruments, such as spot and forward currency translation rates. Non-financial assets Our non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at carrying value in the consolidated balance sheet. We assess the carrying values of non-financial assets for impairment on a periodic basis or whenever events or changes in circumstances indicate an asset may not be fully recoverable. Fair Value of Assets (Liabilities) December 31, 2019 June 30, 2019 As of Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Short-term investments $ 49,000 $ — $ — $ 24,000 $ — $ — Foreign currency derivatives $ — $ 442 $ — $ — $ 383 $ — Interest rate swap $ — $ (1,040) $ — $ — $ (977) $ — Contingent consideration on acquisitions $ — $ — $ (7,678) $ — $ — $ — The table below provides a summary of the changes in the fair value of Level 3 liabilities: Balance at June 30, 2019 $ — Osprey acquisition (7,553) Acquisition-related accrued interest (125) Balance at December 31, 2019 $ (7,678)

Business Segments

Business Segments	6 Months Ended
	Dec. 31, 2019
Business Segments
Business Segments	12. Business Segments We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development. We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein. Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Net sales Animal Health $ 143,689 $ 139,562 $ 265,539 $ 270,751 Mineral Nutrition 55,685 62,319 108,334 117,157 Performance Products 14,638 16,342 29,859 30,468 Total segments $ 214,012 $ 218,223 $ 403,732 $ 418,376 Depreciation and amortization Animal Health $ 6,711 $ 5,493 $ 13,095 $ 10,849 Mineral Nutrition 629 616 1,242 1,213 Performance Products 417 279 794 552 Total segments $ 7,757 $ 6,388 $ 15,131 $ 12,614 Adjusted EBITDA Animal Health $ 33,838 $ 35,925 $ 58,899 $ 71,641 Mineral Nutrition 3,684 4,084 7,159 6,647 Performance Products 1,457 1,514 2,309 2,230 Total segments $ 38,979 $ 41,523 $ 68,367 $ 80,518 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 16,895 $ 20,074 $ 20,467 $ 42,779 Interest expense, net 3,432 3,015 6,786 5,798 Depreciation and amortization – Total segments 7,757 6,388 15,131 12,614 Depreciation and amortization – Corporate 391 453 798 918 Corporate costs 10,491 9,918 20,219 18,804 Restructure costs — — 425 — Stock-based compensation 564 564 1,129 1,129 Acquisition-related cost of goods sold — — 280 — Acquisition-related transaction costs — — 462 — Acquisition-related other 167 — 167 — Other, net — (1,506) — (1,506) Foreign currency (gains) losses, net (718) 2,617 2,503 (18) Adjusted EBITDA – Total segments $ 38,979 $ 41,523 $ 68,367 $ 80,518 December 31, June 30, As of 2019 2019 Identifiable assets Animal Health $ 572,921 $ 508,864 Mineral Nutrition 69,988 67,662 Performance Products 33,530 32,886 Total segments 676,439 609,412 Corporate 111,879 117,259 Total $ 788,318 $ 726,671 The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,548 and $3,287 as of December 31, 2019 and June 30, 2019, respectively. The Performance Products segment includes an investment in an equity method investee of $852 and $759 as of December 31, 2019 and June 30, 2019, respectively. Corporate assets include cash and cash equivalents, short-term investments, debt issuance costs, income tax related assets and certain other assets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and New Accounting Standards (Policies)	6 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies and New Accounting Standards
Leases	Leases We determine at the inception of an arrangement whether the arrangement contains a lease. If an arrangement contains a lease, we assess the lease term when the underlying asset is available for use (“lease commencement.”) Individual lease terms reflect the non-cancellable period of the lease, reasonably certain renewal periods and consideration of termination options. We determine the lease classification as either operating or financing at lease commencement, which governs the pattern of expense recognition and presentation in our consolidated financial statements. Our current lease portfolio only includes operating leases. We recognize a right-of-use (“ROU”) asset and a corresponding lease liability at lease commencement for leases with terms exceeding twelve months. Short-term leases with terms of twelve months or less are not recognized on the consolidated balance sheet and lease payments are recognized on a straight-line basis over the term. The values of the ROU assets and lease liabilities are calculated based on the present value of the fixed payment obligations over the lease term, using our incremental borrowing rate (“IBR”), determined at lease commencement. The IBR reflects the rate of interest we would expect to pay on a secured basis to borrow an amount equal to the lease payments under similar terms. The IBR incorporates the term and economic environment of the respective lease arrangements. We have elected to account for lease and non-lease components together as a single lease component and include fixed payment obligations related to such non-lease components in the measurement of ROU assets and lease liabilities. Fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments can include index-based lease payments, real estate taxes, maintenance costs, utilization charges and other non-lease services paid to lessors and are not determinable at lease commencement. Variable lease payments are not included in the measurement of ROU assets and lease liabilities and are recognized in the period incurred.
Net Income per Share and Weighted Average Shares	Net Income per Share and Weighted Average Shares Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period after giving effect to potential dilutive common shares resulting from the assumed exercise of stock options and vesting of restricted stock units. All common share equivalents were included in the calculation of diluted net income per share in the periods included in the consolidated financial statements. Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Net income $ 11,894 $ 14,748 $ 14,409 $ 31,062 Weighted average number of shares – basic 40,454 40,383 40,454 40,376 Dilutive effect of stock options and restricted stock units 50 140 50 147 Weighted average number of shares – diluted 40,504 40,523 40,504 40,523 Net income per share basic $ 0.29 $ 0.37 $ 0.36 $ 0.77 diluted $ 0.29 $ 0.36 $ 0.36 $ 0.77
New Accounting Standards	New Accounting Standards ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , removes certain exceptions and amends certain requirements in the existing income tax guidance to ease accounting requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 and must be applied on a retrospective basis. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018‑14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715‑20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans , modifies existing disclosure requirements for defined benefit pension and other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020 and must be applied on a retrospective basis. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , modifies existing disclosure requirements for fair value measurement. This ASU is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements. ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income allows reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects related to adjustments resulting from the United States Tax Cuts and Jobs Act. This ASU is effective for our consolidated financial statements beginning July 1, 2019. The adoption of this guidance did not have a material effect on our consolidated financial statements. ASU 2016-02, Leases (Topic 842) requires an entity to recognize assets and liabilities on the balance sheet for both financing and operating leases and requires additional qualitative and quantitative disclosures regarding leasing arrangements. We adopted ASU 2016-02 and its amendments effective July 1, 2019, using a modified retrospective transition approach, which does not require modifications to periods prior to the date of initial application. We utilized certain permitted practical expedients intended to ease transition to the new standard, including carrying forward the original lease classifications without reassessment. We did not use hindsight in our assessment of lease terms as of the effective date. Upon adoption of ASU 2016-02 on July 1, 2019, we recognized initial ROU assets and lease liabilities of $18,576 and $19,368 respectively, on the consolidated balance sheet. The difference in the amounts of the ROU assets and lease liabilities recognized relates to landlord incentives and deferred rent. An adjustment to opening retained earnings was not required, and the recognition of lease expense in the consolidated statements of operations did not change significantly. Refer to “Note 7–Leases” for further information.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies and New Accounting Standards (Tables)	6 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies and New Accounting Standards
Schedule of net income per share and weighted average shares	Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Net income $ 11,894 $ 14,748 $ 14,409 $ 31,062 Weighted average number of shares – basic 40,454 40,383 40,454 40,376 Dilutive effect of stock options and restricted stock units 50 140 50 147 Weighted average number of shares – diluted 40,504 40,523 40,504 40,523 Net income per share basic $ 0.29 $ 0.37 $ 0.36 $ 0.77 diluted $ 0.29 $ 0.36 $ 0.36 $ 0.77

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Dec. 31, 2019
Acquisition
Summary of preliminary fair values of the acquired assets and liabilities	Working capital, net $ 2,366 Property, plant and equipment 2,005 Definite-lived intangible assets 32,400 Goodwill 25,331 Net assets acquired $ 62,102

Statements of Operations-Addi_2

Statements of Operations-Additional Information (Tables)	6 Months Ended
	Dec. 31, 2019
Statements of Operations-Additional Information
Schedule of revenues disaggregated by major product category and geographic region	Net Sales by Product Type Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Animal Health MFAs and other $ 91,955 $ 93,054 $ 166,989 $ 180,058 Nutritional specialties 33,062 29,460 63,495 56,430 Vaccines 18,672 17,048 35,055 34,263 Total Animal Health $ 143,689 $ 139,562 $ 265,539 $ 270,751 Mineral Nutrition 55,685 62,319 108,334 117,157 Performance Products 14,638 16,342 29,859 30,468 Total $ 214,012 $ 218,223 $ 403,732 $ 418,376 Net Sales by Region Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 United States $ 122,917 $ 126,065 $ 241,404 $ 240,552 Latin America and Canada 42,704 40,273 79,445 79,156 Europe, Middle East and Africa 27,660 26,186 51,353 51,022 Asia Pacific 20,731 25,699 31,530 47,646 Total $ 214,012 $ 218,223 $ 403,732 $ 418,376
Schedule of additional information of statements of operations	Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Interest expense, net Term loan $ 2,031 $ 2,202 $ 4,079 $ 4,314 Revolving credit facility 1,530 920 2,961 1,667 Amortization of debt issuance costs and debt discount 221 220 442 441 Acquisition-related accrued interest 79 — 132 — Other 76 120 156 283 Interest expense 3,937 3,462 7,770 6,705 Interest (income) (505) (447) (984) (907) $ 3,432 $ 3,015 $ 6,786 $ 5,798 Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Depreciation and amortization Depreciation of property, plant and equipment $ 5,840 $ 5,308 $ 11,571 $ 10,496 Amortization of intangible assets 2,296 1,521 4,334 3,012 Amortization of other assets 12 12 24 24 $ 8,148 $ 6,841 $ 15,929 $ 13,532

Balance Sheets-Additional Inf_2

Balance Sheets-Additional Information (Tables)	6 Months Ended
	Dec. 31, 2019
Balance Sheets Additional Information
Schedule of additional information of balance sheets	December 31, June 30, As of 2019 2019 Inventories Raw materials $ 73,394 $ 64,441 Work-in-process 10,489 10,699 Finished goods 109,626 123,182 $ 193,509 $ 198,322 December 31, June 30, As of 2019 2019 Goodwill roll-forward Balance at beginning of period $ 27,348 $ 27,348 Osprey acquisition 25,331 — Balance at end of period $ 52,679 $ 27,348 December 31, June 30, As of 2019 2019 Other assets ROU operating lease assets $ 23,115 $ — Deferred income taxes 17,039 16,770 Deposits 6,809 7,024 Insurance investments 5,521 5,431 Equity method investments 4,902 4,196 Indemnification asset 3,000 3,000 Deferred financing fees 1,276 1,531 Other 8,216 7,496 $ 69,878 $ 45,448 December 31, June 30, As of 2019 2019 Accrued expenses and other current liabilities Employee related $ 29,845 $ 28,298 Current operating lease liabilities 6,672 — Commissions and rebates 7,942 8,397 Insurance-related 1,291 1,279 Professional fees 5,222 5,212 Income and other taxes 4,791 6,067 Restructuring costs 2,568 3,590 Other 14,840 15,655 $ 73,171 $ 68,498 Liability balance at June 30, 2019 $ 5,590 Charges 425 Payments (1,847) Liability balance at December 31, 2019 $ 4,168 December 31, June 30, As of 2019 2019 Other liabilities Long-term operating lease liabilities $ 17,453 $ — Long term and deferred income taxes 9,520 8,978 Supplemental retirement benefits, deferred compensation and other 7,837 7,605 Acquisition-related consideration 7,678 — International retirement plans 5,247 5,133 U.S. pension plan 3,146 3,934 Restructuring costs 1,600 2,000 Other long term liabilities 13,917 15,144 $ 66,398 $ 42,794 December 31, June 30, As of 2019 2019 Accumulated other comprehensive income (loss) Derivative instruments $ (598) $ (594) Foreign currency translation adjustment (75,845) (71,225) Unrecognized net pension gains (losses) (19,792) (20,050) (Provision) benefit for income taxes on derivative instruments 149 148 (Provision) benefit for incomes taxes on long-term intercompany investments 8,166 8,166 (Provision) benefit for income taxes on pension gains (losses) (2,690) (2,626) $ (90,610) $ (86,181)

Debt (Tables)

Debt (Tables)	6 Months Ended
	Dec. 31, 2019
Debt
Schedule of long term debt	December 31, June 30, As of 2019 2019 Term A Loan due June 2022 $ 225,000 $ 231,250 Other — 40 225,000 231,290 Unamortized debt issuance costs and debt discount (929) (1,115) 224,071 230,175 Less: current maturities (15,625) (12,540) $ 208,446 $ 217,635

Leases (Tables)

Leases (Tables)	6 Months Ended
	Dec. 31, 2019
Leases
Summary of the ROU assets and the related lease liabilities recorded on the consolidated balance sheet	The following table summarizes the ROU assets and the related lease liabilities recorded on the consolidated balance sheet: December 31, As of 2019 Balance Sheet Classification Assets: Operating lease ROU assets $ 23,115 Other Assets Liabilities: Current portion 6,672 Accrued expenses and other current liabilities Non-current portion 17,453 Other liabilities Total operating lease liabilities $ 24,125
Summary of the composition of net lease cost	The following table summarizes the composition of net lease cost: Three months Six months For the Periods Ended December 31 2019 2019 Operating lease expense $ 1,911 $ 3,762 Variable lease expense 307 631 Short-term lease expense 214 417 Total lease cost $ 2,432 $ 4,810
Summary of other supplemental information	The following tables include other supplemental information: Three months Six months For the Periods Ended December 31 2019 2019 Operating cash flows used for ROU operating leases $ 1,968 $ 3,645 Right of use assets obtained in exchange for new operating lease liabilities $ 3,972 $ 7,762 As of December 31, 2019 Weighted average remaining lease term (in years) - ROU operating leases 6.4 Weighted average discount rate - ROU operating leases 4.17 %
Summary of maturities of future lease liabilities	At December 31, 2019, maturities of future lease liabilities were: For the Years Ending June 30 2020 $ 3,853 2021 6,627 2022 5,012 2023 2,765 2024 2,283 2025 and thereafter 7,273 Total lease payments 27,813 Less: interest 3,688 Total operating lease liabilities $ 24,125
Summary of future minimum lease payments for operating leases accounted for under ASC 840, "Leases," with remaining non-cancelable terms in excess of one year	Future minimum lease payments for operating leases accounted for under ASC 840, " Leases ," with remaining non-cancelable terms in excess of one year at June 30, 2019 were: For the Years Ending June 30 2020 $ 5,815 2021 4,160 2022 3,191 2023 1,445 2024 865 Thereafter 765 Total minimum lease payments $ 16,241

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Dec. 31, 2019
Derivatives
Schedule of significant outstanding derivatives employed to manage market risk and designated as cash flow hedges	Notional Asset (Liability) Amount at fair value as of December 31, Consolidated December 31, June 30, Instrument Hedge 2019 Balance Sheet 2019 2019 Options Brazilian Real calls R$ 108,000 (1) $ 659 $ 413 Options Brazilian Real puts R$ 108,000 (1) $ (217) $ (30) Swap Interest rate swap $ 150,000 Other liabilities $ (1,040) $ (977) (1) We record the net fair values of our outstanding foreign currency option contracts within the respective balance sheet line item based on the net financial position and maturity date of the individual contracts as of the balance sheet date. Other current assets as of December 31, 2019 and June 30, 2019, included net fair values of $442 and $383, respectively.
Schedule of consolidated statements of operations and other comprehensive income	Consolidated Statement Gain (Loss) recognized in consolidated of Operations Line For the Three Months Ended December 31 Gain (Loss) recorded in OCI statements of operations Item Total Consolidated Statement of Instrument Hedge 2019 2018 Operations 2019 2018 2019 2018 Options Brazilian Real calls $ 422 $ 513 Cost of goods sold $ (63) $ — $ 144,908 $ 149,579 Swap Interest rate swap $ 658 $ (2,756) Interest expense, net $ — $ — $ 3,432 $ 3,015 Consolidated Statement Gain (Loss) recognized in of Operations Line For the Six Months Ended December 31 Gain (Loss) recorded in OCI consolidated statements of operations Item Total Consolidated Statement Instrument Hedge 2019 2018 of Operations 2019 2018 2019 2018 Options Brazilian Real calls $ 59 $ 404 Cost of goods sold $ (108) $ 1,084 $ 276,965 $ 283,927 Swap Interest rate swap $ (63) $ (2,106) Interest expense, net $ — $ — $ 6,786 $ 5,798

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Schedule of fair value of assets and liabilities	December 31, 2019 June 30, 2019 As of Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Short-term investments $ 49,000 $ — $ — $ 24,000 $ — $ — Foreign currency derivatives $ — $ 442 $ — $ — $ 383 $ — Interest rate swap $ — $ (1,040) $ — $ — $ (977) $ — Contingent consideration on acquisitions $ — $ — $ (7,678) $ — $ — $ —
Schedule of changes in the fair value of Level 3 liabilities	Balance at June 30, 2019 $ — Osprey acquisition (7,553) Acquisition-related accrued interest (125) Balance at December 31, 2019 $ (7,678)

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Dec. 31, 2019
Business Segments
Schedule of information regarding reportable segments	Three Months Six Months For the Periods Ended December 31 2019 2018 2019 2018 Net sales Animal Health $ 143,689 $ 139,562 $ 265,539 $ 270,751 Mineral Nutrition 55,685 62,319 108,334 117,157 Performance Products 14,638 16,342 29,859 30,468 Total segments $ 214,012 $ 218,223 $ 403,732 $ 418,376 Depreciation and amortization Animal Health $ 6,711 $ 5,493 $ 13,095 $ 10,849 Mineral Nutrition 629 616 1,242 1,213 Performance Products 417 279 794 552 Total segments $ 7,757 $ 6,388 $ 15,131 $ 12,614 Adjusted EBITDA Animal Health $ 33,838 $ 35,925 $ 58,899 $ 71,641 Mineral Nutrition 3,684 4,084 7,159 6,647 Performance Products 1,457 1,514 2,309 2,230 Total segments $ 38,979 $ 41,523 $ 68,367 $ 80,518 Reconciliation of income before income taxes to Adjusted EBITDA Income before income taxes $ 16,895 $ 20,074 $ 20,467 $ 42,779 Interest expense, net 3,432 3,015 6,786 5,798 Depreciation and amortization – Total segments 7,757 6,388 15,131 12,614 Depreciation and amortization – Corporate 391 453 798 918 Corporate costs 10,491 9,918 20,219 18,804 Restructure costs — — 425 — Stock-based compensation 564 564 1,129 1,129 Acquisition-related cost of goods sold — — 280 — Acquisition-related transaction costs — — 462 — Acquisition-related other 167 — 167 — Other, net — (1,506) — (1,506) Foreign currency (gains) losses, net (718) 2,617 2,503 (18) Adjusted EBITDA – Total segments $ 38,979 $ 41,523 $ 68,367 $ 80,518 December 31, June 30, As of 2019 2019 Identifiable assets Animal Health $ 572,921 $ 508,864 Mineral Nutrition 69,988 67,662 Performance Products 33,530 32,886 Total segments 676,439 609,412 Corporate 111,879 117,259 Total $ 788,318 $ 726,671

Summary of Significant Accoun_4

Summary of Significant Accounting Policies and New Accounting Standards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies and New Accounting Standards
Net income	$ 11,894	$ 14,748	$ 14,409	$ 31,062
Weighted average number of shares - basic (in shares)	40,454	40,383	40,454	40,376
Dilutive effect of stock options and restricted stock units	50	140	50	147
Weighted average number of shares - diluted (in shares)	40,504	40,523	40,504	40,523
Net income per share
basic (in dollars per share)	$ 0.29	$ 0.37	$ 0.36	$ 0.77
diluted (in dollars per share)	$ 0.29	$ 0.36	$ 0.36	$ 0.77

Summary of Significant Accoun_5

Summary of Significant Accounting Policies and New Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands	Jul. 01, 2019	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
ROU operating lease assets		$ 23,115
Lease liabilities		$ 24,125
ASU 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Lease, Practical Expedient, Land Easement	true
Lease, Practical Expedient, Use of Hindsight	false
ROU operating lease assets	$ 18,576
Lease liabilities	$ 19,368

Acquisition - Acquired Assets a

Acquisition - Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Aug. 31, 2019	Jun. 30, 2019	Jun. 30, 2018
The preliminary fair values of the acquired assets and liabilities as of the acquisition date
Goodwill	$ 52,679		$ 27,348	$ 27,348
Osprey Biotechnics, Inc. ("Osprey")
The preliminary fair values of the acquired assets and liabilities as of the acquisition date
Working capital, net		$ 2,366
Property, plant and equipment		2,005
Definite-lived intangible assets		32,400
Goodwill		25,331
Net assets acquired		$ 62,102

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Aggregate cash consideration		$ 54,549	$ 9,838
Minimum
Business Acquisition [Line Items]
Estimated useful life of definite-lived intangible assets	5 years
Maximum
Business Acquisition [Line Items]
Estimated useful life of definite-lived intangible assets	12 years
Osprey Biotechnics, Inc. ("Osprey")
Business Acquisition [Line Items]
Aggregate cash consideration	$ 54,549
Estimated future payment, liability	7,553
Minimum additional consideration	$ 4,840

Statements of Operations (Detai

Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statements Of Operations Additional Information [Line Items]
Total	$ 214,012	$ 218,223	$ 403,732	$ 418,376
United States
Statements Of Operations Additional Information [Line Items]
Total	122,917	126,065	241,404	240,552
Latin America and Canada
Statements Of Operations Additional Information [Line Items]
Total	42,704	40,273	79,445	79,156
Europe, Middle East and Africa
Statements Of Operations Additional Information [Line Items]
Total	27,660	26,186	51,353	51,022
Asia Pacific
Statements Of Operations Additional Information [Line Items]
Total	20,731	25,699	31,530	47,646
Animal Health
Statements Of Operations Additional Information [Line Items]
Total	143,689	139,562	265,539	270,751
Animal Health | MFAs and other
Statements Of Operations Additional Information [Line Items]
Total	91,955	93,054	166,989	180,058
Animal Health | Nutritional Specialties
Statements Of Operations Additional Information [Line Items]
Total	33,062	29,460	63,495	56,430
Animal Health | Vaccines
Statements Of Operations Additional Information [Line Items]
Total	18,672	17,048	35,055	34,263
Mineral Nutrition
Statements Of Operations Additional Information [Line Items]
Total	55,685	62,319	108,334	117,157
Performance Products
Statements Of Operations Additional Information [Line Items]
Total	$ 14,638	$ 16,342	$ 29,859	$ 30,468

Statements of Operations - Inte

Statements of Operations - Interest Expense and Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Interest expense, net
Amortization of debt issuance costs and debt discount	$ 221	$ 220	$ 442	$ 441
Acquisition-related accrued interest	79	0	132
Other	76	120	156	283
Interest expense	3,937	3,462	7,770	6,705
Interest (income)	(505)	(447)	(984)	(907)
Interest expense, net	3,432	3,015	6,786	5,798
Depreciation and amortization
Depreciation of property, plant and equipment	5,840	5,308	11,571	10,496
Amortization of intangible assets	2,296	1,521	4,334	3,012
Amortization of other assets	12	12	24	24
Depreciation and amortization	8,148	6,841	15,929	13,532
Term Loan
Interest expense, net
Interest expense	2,031	2,202	4,079	4,314
Revolving credit facility
Interest expense, net
Interest expense	$ 1,530	$ 920	$ 2,961	$ 1,667

Statements of Operations - Addi

Statements of Operations - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Statements Of Operations Additional Information [Line Items]
Deferred revenue	$ 5,130	$ 5,464
Current deferred revenue, included in accrued expense and other current liabilities	$ 1,082	$ 965
Customer | Maximum
Statements Of Operations Additional Information [Line Items]
Payment term	120 days
Average worldwide collection period for accounts receivable	70 days
Customer | Minimum
Statements Of Operations Additional Information [Line Items]
Payment term	30 days
Average worldwide collection period for accounts receivable	60 days

Balance Sheets-Additional Inf_3

Balance Sheets-Additional Information - Schedule of inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Inventories
Raw materials	$ 73,394	$ 64,441
Work-in-process	10,489	10,699
Finished goods	109,626	123,182
Inventory, net	$ 193,509	$ 198,322

Balance Sheets-Additional Inf_4

Balance Sheets-Additional Information - Other balance sheet items (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2019
Goodwill roll-forward
Balance at beginning of period	$ 27,348		$ 27,348
Osprey acquisition			25,331
Balance at end of period		$ 27,348	52,679
Other assets
ROU operating lease assets			23,115
Deferred income taxes		16,770	17,039
Deposits		7,024	6,809
Insurance investments		5,431	5,521
Equity method investments		4,196	4,902
Indemnification asset		3,000	3,000
Deferred financing fees		1,531	1,276
Other		7,496	8,216
Other assets, total		45,448	69,878
Accrued expenses and other current liabilities
Employee related		28,298	29,845
Current operating lease liabilities			6,672
Commissions and rebates		8,397	7,942
Insurance-related		1,279	1,291
Professional fees		5,212	5,222
Income and other taxes		6,067	4,791
Restructuring costs		3,590	2,568
Other		15,655	14,840
Accrued expenses and other current liabilities, total		68,498	73,171
Restructuring Reserve [Roll Forward]
Liability balance at June 30, 2019	5,590		5,590
Charges	$ 425		425
Payments			(1,847)
Liability balance at December 31, 2019		5,590	4,168
Other liabilities
Long-term operating lease liabilities			17,453
Long term and deferred income taxes		8,978	9,520
Supplemental retirement benefits, deferred compensation and other		7,605	7,837
Acquisition-related consideration			7,678
International retirement plans		5,133	5,247
U.S. pension plan		3,934	3,146
Restructuring costs		2,000	1,600
Other long term liabilities		15,144	13,917
Other liabilities, total		42,794	66,398
Accumulated other comprehensive income (loss)
Derivative instruments		(594)	(598)
Foreign currency translation adjustment		(71,225)	(75,845)
Unrecognized net pension gains (losses)		(20,050)	(19,792)
(Provision) benefit for income taxes on derivative instruments		148	149
(Provision) benefit for income taxes on long-term intercompany investments		8,166	8,166
(Provision) benefit for income taxes on pension gains (losses)		(2,626)	(2,690)
Accumulated other comprehensive income (loss)		$ (86,181)	$ (90,610)

Balance Sheets-Additional Inf_5

Balance Sheets-Additional Information - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2019
Additional Information Of Balance Sheet [Line Items]
Equity method investments		$ 4,196	$ 4,902
Expense paid for restructuring			1,847
Restructuring Charges	$ 425		425
Accrued expenses and other current liabilities		68,498	73,171
Other liabilities		42,794	66,398
Animal Health
Additional Information Of Balance Sheet [Line Items]
Equity method investments		3,287	3,548
Pre tax restructuring charges		6,281
Charges related to termination of a contract manufacturing agreement		3,500
Employee separation costs		2,781
Expense paid for restructuring		$ 691
Accrued expenses and other current liabilities			2,568
Other liabilities			1,600
Additional charge for employee separation costs			$ 500

Debt - Summary of long-term deb

Debt - Summary of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Debt
Term A Loan due June 2022	$ 225,000	$ 231,250
Other		40
Long-term debt including current maturities	225,000	231,290
Unamortized debt issuance costs and debt discount	(929)	(1,115)
Long-term debt after debt issuance costs	224,071	230,175
Less: current maturities	(15,625)	(12,540)
Long-term debt	$ 208,446	$ 217,635

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Jul. 31, 2017
Debt Instrument [Line Items]
Revolving credit facility	$ 149,000,000	$ 96,000,000
Interest Rate Swap
Debt Instrument [Line Items]
Percentage of interest rate				1.8325%
Derivative, Notional Amount	150,000			$ 150,000
Credit Agreement [Member] | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	250,000,000
Revolving credit facility	149,000,000
Outstanding letters of credit	2,709,000
Aggregate available credit facilities	$ 98,291,000
Weighted-average interest rates	3.58%		3.71%
Percentage of interest rate	3.51%
Credit Agreement [Member] | Term A Loans And Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maturity dates	June 29, 2022
Covenant requirement, permitted leverage ratio	a maximum First Lien Net Leverage Ratio and (ii) a minimum consolidated interest coverage ratio, each calculated on a trailing four quarter basis
Debt instrument, covenant compliance	we were in compliance with the financial covenants
Credit Agreement [Member] | Term A Loans And Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest rate, description	2.00%, 1.75% or 1.50%
Floor rate	0.00%
Credit Agreement [Member] | Term A Loans And Revolving Credit Facility [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Interest rate, description	2.00%, 1.75% or 1.50%
Credit Agreement [Member] | Term A Loans And Revolving Credit Facility [Member] | Base Rate
Debt Instrument [Line Items]
Interest rate, description	1.00%, 0.75% or 0.50%
Credit Agreement [Member] | Term A Loan [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 250,000,000
Weighted-average interest rates	3.46%		3.47%
Percentage of interest rate	3.61%

Leases - ROU assets and the rel

Leases - ROU assets and the related lease liabilities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases
Remaining non-cancelable lease terms	16 years
Operating lease ROU assets included in Other Assets	$ 23,115
Operating lease ROU assets included in Other Assets	us-gaap:OtherAssetsNoncurrent
Current portion included in Accrued expenses and other current liabilities	$ 6,672
Current portion included in Accrued expenses and other current liabilities	us-gaap:AccruedLiabilitiesCurrent
Non-current portion included in Other liabilities	$ 17,453
Non-current portion included in Other liabilities	us-gaap:OtherLiabilitiesNoncurrent
Total operating lease liabilities	$ 24,125

Leases - Composition of net lea

Leases - Composition of net lease cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Leases
Operating lease expense	$ 1,911	$ 3,762
Variable lease expense	307	631
Short-term lease expense	214	417
Total lease cost	$ 2,432	$ 4,810

Leases - Other supplemental inf

Leases - Other supplemental information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Leases
Operating cash flows used for ROU operating leases	$ 1,968	$ 3,645
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)	$ 3,972	$ 7,762
Weighted average remaining lease term (in years) - ROU operating leases	6 years 4 months 24 days	6 years 4 months 24 days
Weighted average discount rate - ROU operating leases	4.17%	4.17%

Leases - Maturities of future l

Leases - Maturities of future lease liabilities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases
2020	$ 3,853
2021	6,627
2022	5,012
2023	2,765
2024	2,283
2025 and thereafter	7,273
Total lease payments	27,813
Less: interest	3,688
Total operating lease liabilities	$ 24,125

Leases - Future minimum lease p

Leases - Future minimum lease payments for operating leases accounted for under ASC 840 (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases
2020	$ 5,815
2021	4,160
2022	3,191
2023	1,445
2024	865
Thereafter	765
Total minimum lease payments	$ 16,241

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Certain relatives of Jack C. Bendheim | Compensation and benefit for services provided
Related Party Transaction [Line Items]
Aggregate compensation and benefits	$ 390	$ 430	$ 841	$ 1,213

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)item	Jun. 30, 2019USD ($)
Commitments And Contingencies [Line Items]
Number of potentially responsible parties | item	140
Current And Long Term Liabilities
Commitments And Contingencies [Line Items]
Accrual for environmental loss contingencies payments | $	$ 5,096	$ 5,890

Derivatives - Company's Outstan

Derivatives - Company's Outstanding Derivatives (Details) R$ in Thousands, $ in Thousands	Dec. 31, 2019BRL (R$)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)
Equity Option | Brazilian Real puts
Derivative [Line Items]
Notional amount | R$	R$ 108000
Fair value		$ 659	$ 413
Fair value		(217)	(30)
Swap | Interest Rate Swap
Derivative [Line Items]
Notional amount		150,000
Swap | Interest Rate Swap | Other liabilities
Derivative [Line Items]
Fair value		$ (1,040)	$ (977)

Derivatives - Effects of Deriva

Derivatives - Effects of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Cost of goods sold	$ 144,908	$ 149,579	$ 276,965	$ 283,927
Interest expense, net	3,432	3,015	6,786	5,798
Equity Option | Cash Flow Hedging | Brazilian Real puts | Cost of Sales
Derivative [Line Items]
Gain (loss) recognized in consolidated statements of operations	(63)		(108)	1,084
Equity Option | Cash Flow Hedging | Brazilian Real puts | Other Comprehensive Income (Loss)
Derivative [Line Items]
Gain (loss) recorded in OCI	422	513	59	404
Swap | Interest Rate Swap | Cash Flow Hedging | Other Comprehensive Income (Loss)
Derivative [Line Items]
Gain (loss) recorded in OCI	$ 658	$ (2,756)	$ (63)	$ (2,106)

Derivatives - Additional Inform

Derivatives - Additional Information (Details) - USD ($)	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Jul. 31, 2017
Derivative [Line Items]
Maximum maturity period for Foreign Currency Derivatives	Jun. 30, 2021
Other Current Assets
Derivative [Line Items]
Fair values of total foreign currency derivatives outstanding	$ 442	$ 383
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	$ 150,000		$ 150,000
Percentage of interest rate	1.8325%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Fair Value of Assets (Liabilities)
Short-term investments	$ 49,000	$ 24,000
Level 1
Fair Value of Assets (Liabilities)
Short-term investments	49,000	24,000
Level 2
Fair Value of Assets (Liabilities)
Foreign currency derivatives	442	383
Interest rate swap (liability)	(1,040)	$ (977)
Level 3
Fair Value of Assets (Liabilities)
Contingent consideration on acquisitions	$ (7,678)

Fair Value Measurements - Chang

Fair Value Measurements - Changes in fair value of Level 3 liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019
Business Combination Contingent Consideration Liability [Roll Forward]
Acquisition-related accrued interest	$ (79)	$ 0	$ (132)
Level 3
Business Combination Contingent Consideration Liability [Roll Forward]
Acquisition-related accrued interest			(125)
Balance at December 31, 2019	$ (7,678)		(7,678)
Osprey Biotechnics, Inc. ("Osprey") | Level 3
Business Combination Contingent Consideration Liability [Roll Forward]
Acquisition			$ (7,553)

Business Segments - Segments in

Business Segments - Segments in Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information
Net sales	$ 214,012		$ 218,223	$ 403,732	$ 418,376
Depreciation and amortization	8,148		6,841	15,929	13,532
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	16,895		20,074	20,467	42,779
Interest expense, net	3,432		3,015	6,786	5,798
Depreciation and amortization	8,148		6,841	15,929	13,532
Stock-based compensation				1,129	1,129
Acquisition-related costs of goods sold				280
Foreign currency (gains) losses, net	(718)		2,617	2,503	(18)
Identifiable assets	788,318	$ 726,671		788,318
Animal Health
Segment Reporting Information
Net sales	143,689		139,562	265,539	270,751
Reconciliation of income before income taxes to Adjusted EBITDA
Restructure costs		6,281
Mineral Nutrition
Segment Reporting Information
Net sales	55,685		62,319	108,334	117,157
Performance Products
Segment Reporting Information
Net sales	14,638		16,342	29,859	30,468
Operating Segments
Segment Reporting Information
Net sales	214,012		218,223	403,732	418,376
Depreciation and amortization	7,757		6,388	15,131	12,614
Adjusted EBITDA - Total segments	38,979		41,523	68,367	80,518
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes	16,895		20,074	20,467	42,779
Interest expense, net	3,432		3,015	6,786	5,798
Depreciation and amortization	7,757		6,388	15,131	12,614
Restructure costs				425
Stock-based compensation	564		564	1,129	1,129
Acquisition-related costs of goods sold				280
Acquisition-related transaction costs				462
Acquisition-related other	167			167
Other, net			(1,506)		(1,506)
Foreign currency (gains) losses, net	(718)		2,617	2,503	(18)
Adjusted EBITDA - Total segments	38,979		41,523	68,367	80,518
Identifiable assets	676,439	609,412		676,439
Operating Segments | Animal Health
Segment Reporting Information
Net sales	143,689		139,562	265,539	270,751
Depreciation and amortization	6,711		5,493	13,095	10,849
Adjusted EBITDA - Total segments	33,838		35,925	58,899	71,641
Reconciliation of income before income taxes to Adjusted EBITDA
Depreciation and amortization	6,711		5,493	13,095	10,849
Adjusted EBITDA - Total segments	33,838		35,925	58,899	71,641
Identifiable assets	572,921	508,864		572,921
Operating Segments | Mineral Nutrition
Segment Reporting Information
Net sales	55,685		62,319	108,334	117,157
Depreciation and amortization	629		616	1,242	1,213
Adjusted EBITDA - Total segments	3,684		4,084	7,159	6,647
Reconciliation of income before income taxes to Adjusted EBITDA
Depreciation and amortization	629		616	1,242	1,213
Adjusted EBITDA - Total segments	3,684		4,084	7,159	6,647
Identifiable assets	69,988	67,662		69,988
Operating Segments | Performance Products
Segment Reporting Information
Net sales	14,638		16,342	29,859	30,468
Depreciation and amortization	417		279	794	552
Adjusted EBITDA - Total segments	1,457		1,514	2,309	2,230
Reconciliation of income before income taxes to Adjusted EBITDA
Depreciation and amortization	417		279	794	552
Adjusted EBITDA - Total segments	1,457		1,514	2,309	2,230
Identifiable assets	33,530	32,886		33,530
Corporate
Segment Reporting Information
Depreciation and amortization	391		453	798	918
Reconciliation of income before income taxes to Adjusted EBITDA
Depreciation and amortization	391		453	798	918
Corporate costs	10,491		$ 9,918	20,219	$ 18,804
Identifiable assets	$ 111,879	$ 117,259		$ 111,879

Business Segments - Additional

Business Segments - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Equity method investments
Equity method investments	$ 4,902	$ 4,196
Animal Health
Equity method investments
Equity method investments	3,548	3,287
Performance Products
Equity method investments
Equity method investments	$ 852	$ 759