10-Q 1 pahc-20220331x10q.htm FORM 10-Q
0001069899--06-302022Q3false203375742033757400201660342016603400000000002016603420166034PHIBRO ANIMAL HEALTH CORP2.00%, 1.75% or 1.50%2023-02-280001069899us-gaap:CommonStockMember2021-01-012021-03-310001069899us-gaap:RetainedEarningsMember2022-03-310001069899us-gaap:AdditionalPaidInCapitalMember2022-03-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001069899us-gaap:RetainedEarningsMember2021-12-310001069899us-gaap:AdditionalPaidInCapitalMember2021-12-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001069899us-gaap:RetainedEarningsMember2021-09-300001069899us-gaap:AdditionalPaidInCapitalMember2021-09-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000010698992021-09-300001069899us-gaap:RetainedEarningsMember2021-06-300001069899us-gaap:AdditionalPaidInCapitalMember2021-06-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001069899us-gaap:RetainedEarningsMember2021-03-310001069899us-gaap:AdditionalPaidInCapitalMember2021-03-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001069899us-gaap:RetainedEarningsMember2020-12-310001069899us-gaap:AdditionalPaidInCapitalMember2020-12-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100010698992020-12-310001069899us-gaap:RetainedEarningsMember2020-09-300001069899us-gaap:AdditionalPaidInCapitalMember2020-09-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000010698992020-09-300001069899us-gaap:RetainedEarningsMember2020-06-300001069899us-gaap:AdditionalPaidInCapitalMember2020-06-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001069899us-gaap:CommonStockMember2022-03-310001069899us-gaap:CommonStockMember2021-12-310001069899us-gaap:CommonStockMember2021-09-300001069899us-gaap:CommonStockMember2021-06-300001069899us-gaap:CommonStockMember2021-03-310001069899us-gaap:CommonStockMember2020-12-310001069899us-gaap:CommonStockMember2020-09-300001069899us-gaap:CommonStockMember2020-06-300001069899pahc:CustomerMember2021-07-012022-03-310001069899pahc:CompensationAndBenefitForServicesMemberus-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember2022-01-012022-03-310001069899pahc:CompensationAndBenefitForServicesMemberus-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember2021-07-012022-03-310001069899pahc:CompensationAndBenefitForServicesMemberus-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember2021-01-012021-03-310001069899pahc:CompensationAndBenefitForServicesMemberus-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember2020-07-012021-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:OtherComprehensiveIncomeMember2022-01-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:LongMember2022-01-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:OtherComprehensiveIncomeMember2021-07-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:LongMember2021-07-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:LongMember2021-01-012021-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:OtherComprehensiveIncomeMember2020-07-012021-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherComprehensiveIncomeMemberus-gaap:LongMember2020-07-012021-03-310001069899us-gaap:RevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMember2021-04-300001069899pahc:TermALoansAndRevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-07-012022-03-310001069899pahc:TermALoansAndRevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMemberus-gaap:EurodollarMember2021-07-012022-03-310001069899pahc:TermALoansAndRevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMemberus-gaap:BaseRateMember2021-07-012022-03-310001069899us-gaap:RevolvingCreditFacilityMemberpahc:CreditAgreementMember2022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:InterestExpenseMember2022-01-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:InterestExpenseMember2021-07-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:InterestExpenseMember2021-01-012021-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMemberus-gaap:InterestExpenseMember2020-07-012021-03-310001069899us-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001069899pahc:TermLoanMember2022-01-012022-03-310001069899us-gaap:RevolvingCreditFacilityMember2021-07-012022-03-310001069899pahc:TermLoanMember2021-07-012022-03-310001069899us-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001069899pahc:TermLoanMember2021-01-012021-03-310001069899us-gaap:RevolvingCreditFacilityMember2020-07-012021-03-310001069899pahc:TermLoanMember2020-07-012021-03-3100010698992021-12-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2022-01-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2022-01-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2021-07-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2021-07-012022-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2021-01-012021-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2021-01-012021-03-310001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2020-07-012021-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2020-07-012021-03-310001069899srt:MinimumMember2021-07-012022-03-310001069899srt:MaximumMember2021-07-012022-03-3100010698992020-07-012021-06-3000010698992022-07-310001069899pahc:March2020AgreementMember2022-03-310001069899us-gaap:InterestRateSwapMemberpahc:March2020AgreementMember2020-03-310001069899pahc:AccruedAndOtherCurrentLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2022-03-310001069899pahc:AccruedAndOtherCurrentLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2021-06-300001069899pahc:AccruedAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2021-06-300001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2021-06-300001069899us-gaap:InterestRateSwapMemberpahc:July2017AgreementMember2017-07-310001069899us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2022-03-310001069899us-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2022-03-310001069899us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2022-03-310001069899us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2022-03-310001069899us-gaap:OtherLiabilitiesMemberus-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2021-06-300001069899us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2021-06-300001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2021-06-300001069899us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SwapMember2022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:ShortMember2022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:LongMember2022-03-310001069899us-gaap:CorporateNonSegmentMember2022-01-012022-03-310001069899us-gaap:CorporateNonSegmentMember2021-07-012022-03-310001069899us-gaap:CorporateNonSegmentMember2021-01-012021-03-310001069899us-gaap:CorporateNonSegmentMember2020-07-012021-03-310001069899us-gaap:RevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMember2021-03-310001069899pahc:TermALoanMemberpahc:TwoThousandTwentyOneCreditAgreementMember2021-03-310001069899us-gaap:RevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMember2022-03-310001069899us-gaap:InterestRateSwapMemberpahc:March2020AgreementMember2022-03-310001069899us-gaap:InterestRateSwapMemberpahc:July2017AgreementMember2022-03-310001069899pahc:TermALoanMemberpahc:TwoThousandTwentyOneCreditAgreementMember2022-03-310001069899pahc:TermALoanMemberpahc:TwoThousandTwentyOneCreditAgreementMember2021-04-300001069899pahc:TermALoansAndRevolvingCreditFacilityMemberpahc:TwoThousandTwentyOneCreditAgreementMember2021-07-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:LongMember2022-01-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:LongMember2021-07-012022-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:LongMember2021-01-012021-03-310001069899us-gaap:ForeignExchangeOptionMemberus-gaap:CashFlowHedgingMemberus-gaap:CostOfSalesMemberus-gaap:LongMember2020-07-012021-03-310001069899us-gaap:RetainedEarningsMember2022-01-012022-03-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001069899us-gaap:RetainedEarningsMember2021-10-012021-12-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310001069899us-gaap:RetainedEarningsMember2021-07-012021-09-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-3000010698992021-07-012021-09-300001069899us-gaap:RetainedEarningsMember2021-01-012021-03-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001069899us-gaap:RetainedEarningsMember2020-10-012020-12-310001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310001069899us-gaap:RetainedEarningsMember2020-07-012020-09-300001069899us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001069899us-gaap:CommonClassBMember2022-03-310001069899us-gaap:CommonClassBMember2021-06-300001069899us-gaap:CommonClassAMember2022-03-310001069899us-gaap:CommonClassAMember2021-06-3000010698992021-10-012021-12-3100010698992021-03-3100010698992020-06-300001069899us-gaap:FairValueInputsLevel3Member2022-03-310001069899us-gaap:FairValueInputsLevel2Member2022-03-310001069899us-gaap:FairValueInputsLevel1Member2022-03-3100010698992021-10-310001069899us-gaap:FairValueInputsLevel3Member2021-06-300001069899us-gaap:FairValueInputsLevel2Member2021-06-300001069899us-gaap:FairValueInputsLevel1Member2021-06-300001069899pahc:BusinessMember2022-02-012022-02-280001069899us-gaap:AdditionalPaidInCapitalMember2020-10-012020-12-3100010698992020-10-012020-12-310001069899us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-3000010698992020-07-012020-09-300001069899pahc:CurrentAndLongTermLiabilitiesMember2022-03-310001069899pahc:CurrentAndLongTermLiabilitiesMember2021-06-300001069899us-gaap:FairValueInputsLevel3Member2021-07-012022-03-310001069899us-gaap:FairValueInputsLevel2Member2021-07-012022-03-310001069899us-gaap:FairValueInputsLevel1Member2021-07-012022-03-310001069899us-gaap:FairValueInputsLevel3Member2020-07-012021-06-300001069899us-gaap:FairValueInputsLevel2Member2020-07-012021-06-300001069899us-gaap:FairValueInputsLevel1Member2020-07-012021-06-300001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2022-03-310001069899us-gaap:OperatingSegmentsMember2022-03-310001069899us-gaap:CorporateNonSegmentMember2022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2021-06-300001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2021-06-300001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2021-06-300001069899us-gaap:OperatingSegmentsMember2021-06-300001069899us-gaap:CorporateNonSegmentMember2021-06-300001069899pahc:VaccinesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2022-01-012022-03-310001069899pahc:NutritionalSpecialtiesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2022-01-012022-03-310001069899pahc:MedicatedFeedAdditivesAndOthersMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2022-01-012022-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:PerformanceProductsMember2022-01-012022-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:MineralNutritionMember2022-01-012022-03-310001069899srt:AsiaPacificMember2022-01-012022-03-310001069899pahc:LatinAmericaAndCanadaMember2022-01-012022-03-310001069899pahc:EuropeMiddleEastAndAfricaMember2022-01-012022-03-310001069899pahc:AnimalHealthMember2022-01-012022-03-310001069899country:US2022-01-012022-03-310001069899pahc:VaccinesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-07-012022-03-310001069899pahc:NutritionalSpecialtiesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-07-012022-03-310001069899pahc:MedicatedFeedAdditivesAndOthersMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-07-012022-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:PerformanceProductsMember2021-07-012022-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:MineralNutritionMember2021-07-012022-03-310001069899srt:AsiaPacificMember2021-07-012022-03-310001069899pahc:LatinAmericaAndCanadaMember2021-07-012022-03-310001069899pahc:EuropeMiddleEastAndAfricaMember2021-07-012022-03-310001069899pahc:AnimalHealthMember2021-07-012022-03-310001069899country:US2021-07-012022-03-310001069899pahc:VaccinesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-01-012021-03-310001069899pahc:NutritionalSpecialtiesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-01-012021-03-310001069899pahc:MedicatedFeedAdditivesAndOthersMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2021-01-012021-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:PerformanceProductsMember2021-01-012021-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:MineralNutritionMember2021-01-012021-03-310001069899srt:AsiaPacificMember2021-01-012021-03-310001069899pahc:LatinAmericaAndCanadaMember2021-01-012021-03-310001069899pahc:EuropeMiddleEastAndAfricaMember2021-01-012021-03-310001069899pahc:AnimalHealthMember2021-01-012021-03-310001069899country:US2021-01-012021-03-310001069899pahc:VaccinesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2020-07-012021-03-310001069899pahc:NutritionalSpecialtiesMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2020-07-012021-03-310001069899pahc:MedicatedFeedAdditivesAndOthersMemberus-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:AnimalHealthMember2020-07-012021-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:PerformanceProductsMember2020-07-012021-03-310001069899us-gaap:RevenueFromContractWithCustomerSegmentBenchmarkMemberpahc:MineralNutritionMember2020-07-012021-03-310001069899srt:AsiaPacificMember2020-07-012021-03-310001069899pahc:LatinAmericaAndCanadaMember2020-07-012021-03-310001069899pahc:EuropeMiddleEastAndAfricaMember2020-07-012021-03-310001069899pahc:AnimalHealthMember2020-07-012021-03-310001069899country:US2020-07-012021-03-3100010698992020-07-012021-03-310001069899us-gaap:CostOfSalesMember2022-03-310001069899pahc:CustomerMembersrt:MinimumMember2021-07-012022-03-310001069899pahc:CustomerMembersrt:MaximumMember2021-07-012022-03-310001069899pahc:BusinessMember2022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2022-01-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2022-01-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2022-01-012022-03-310001069899us-gaap:OperatingSegmentsMember2022-01-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2021-07-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2021-07-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2021-07-012022-03-310001069899us-gaap:OperatingSegmentsMember2021-07-012022-03-310001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2021-01-012021-03-310001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2021-01-012021-03-310001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2021-01-012021-03-310001069899us-gaap:OperatingSegmentsMember2021-01-012021-03-310001069899us-gaap:OperatingSegmentsMemberpahc:PerformanceProductsMember2020-07-012021-03-310001069899us-gaap:OperatingSegmentsMemberpahc:MineralNutritionMember2020-07-012021-03-310001069899us-gaap:OperatingSegmentsMemberpahc:AnimalHealthMember2020-07-012021-03-310001069899us-gaap:OperatingSegmentsMember2020-07-012021-03-3100010698992022-01-012022-03-3100010698992021-01-012021-03-3100010698992022-03-3100010698992021-06-300001069899us-gaap:CommonClassBMember2022-04-270001069899us-gaap:CommonClassAMember2022-04-2700010698992021-07-012022-03-31xbrli:sharesiso4217:USDpahc:itemiso4217:USDxbrli:sharesxbrli:pureiso4217:BRL

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number: 001-36410

Phibro Animal Health Corporation

(Exact name of registrant as specified in its charter)

Delaware

13-1840497

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

Glenpointe Centre East, 3rd Floor

300 Frank W. Burr Boulevard, Suite 21

Teaneck, New Jersey

07666-6712

(Address of Principal Executive Offices)

(Zip Code)

(201) 329-7300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

    

Name of each exchange on which registered

Class A Common Stock, $0.0001
par value per share

PAHC

Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of April 27, 2022, there were 20,337,574 shares of the registrant’s Class A common stock, par value $0.0001 per share, and 20,166,034 shares of the registrant’s Class B common stock, par value $0.0001 per share, outstanding.

PHIBRO ANIMAL HEALTH CORPORATION

TABLE OF CONTENTS

Page

PART I—FINANCIAL INFORMATION

Item 1.

Financial Statements (unaudited)

3

 

Consolidated Statements of Operations

3

 

Consolidated Statements of Comprehensive Income

4

 

Consolidated Balance Sheets

5

 

Consolidated Statements of Cash Flows

6

 

Consolidated Statements of Changes in Stockholders’ Equity

7

 

Notes to Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34

PART II—OTHER INFORMATION

Item 1.

Legal Proceedings

35

Item 1A.

Risk Factors

35

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 3.

Defaults Upon Senior Securities

35

Item 4.

Mine Safety Disclosures

35

Item 5.

Other Information

35

SIGNATURES

36

2

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

PHIBRO ANIMAL HEALTH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

(unaudited)

(in thousands, except per share amounts)

Net sales

$

239,619

$

211,729

$

686,996

$

613,072

Cost of goods sold

 

167,993

 

142,564

 

480,020

 

411,523

Gross profit

 

71,626

 

69,165

 

206,976

 

201,549

Selling, general and administrative expenses

 

52,432

 

49,033

 

150,876

 

145,839

Operating income

 

19,194

 

20,132

 

56,100

 

55,710

Interest expense, net

 

2,925

 

2,933

 

8,767

 

8,957

Foreign currency (gains), net

 

(10,564)

 

(583)

 

(12,625)

 

(3,590)

Income before income taxes

 

26,833

 

17,782

 

59,958

 

50,343

Provision for income taxes

 

9,144

 

5,621

 

18,270

 

13,079

Net income

$

17,689

$

12,161

$

41,688

$

37,264

Net income per share

 

  

 

  

 

  

 

  

basic

$

0.44

$

0.30

$

1.03

$

0.92

diluted

$

0.44

$

0.30

$

1.03

$

0.92

Weighted average common shares outstanding

 

 

 

 

basic

 

40,504

 

40,483

 

40,504

 

40,463

diluted

 

40,504

 

40,504

 

40,504

 

40,504

The accompanying notes are an integral part of these consolidated financial statements

3

PHIBRO ANIMAL HEALTH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

(unaudited)

(in thousands)

Net income

$

17,689

$

12,161

$

41,688

$

37,264

Change in fair value of derivative instruments

 

14,958

 

5,749

 

19,739

 

10,567

Foreign currency translation adjustment

 

3,514

 

(9,122)

 

(13,761)

 

(4,345)

Unrecognized net pension gains

 

120

 

144

 

354

 

416

Provision for income taxes

 

(3,770)

 

(1,473)

 

(5,023)

 

(2,745)

Other comprehensive income (loss)

 

14,822

 

(4,702)

 

1,309

 

3,893

Comprehensive income

$

32,511

$

7,459

$

42,997

$

41,157

The accompanying notes are an integral part of these consolidated financial statements

4

PHIBRO ANIMAL HEALTH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 

June 30, 

As of

    

2022

    

2021

(unaudited)

 

(in thousands, except share and per share amounts)

ASSETS

Cash and cash equivalents

$

70,748

$

50,212

Short-term investments

 

22,100

 

43,000

Accounts receivable, net

 

156,561

 

146,852

Inventories, net

 

249,911

 

216,312

Other current assets

 

47,157

 

42,533

Total current assets

 

546,477

 

498,909

Property, plant and equipment, net

 

162,455

 

154,706

Intangibles, net

 

67,384

 

62,282

Goodwill

 

53,321

 

52,679

Other assets

 

86,544

 

72,749

Total assets

$

916,181

$

841,325

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current portion of long-term debt

$

15,000

$

9,375

Accounts payable

 

89,696

 

68,362

Accrued expenses and other current liabilities

 

82,406

 

86,379

Total current liabilities

 

187,102

 

164,116

Revolving credit facility

 

124,000

 

95,000

Long-term debt

 

276,621

 

287,710

Other liabilities

 

61,513

 

55,970

Total liabilities

 

649,236

 

602,796

Commitments and contingencies (Note 7)

 

 

Common stock, par value $0.0001 per share; 300,000,000 Class A shares authorized, 20,337,574 shares issued and outstanding at March 31, 2022 and June 30, 2021; 30,000,000 Class B shares authorized, 20,166,034 shares issued and outstanding at March 31, 2022 and June 30, 2021

 

4

 

4

Preferred stock, par value $0.0001 per share; 16,000,000 shares authorized, no shares issued and outstanding

 

Paid-in capital

 

135,803

 

135,803

Retained earnings

 

245,122

 

218,015

Accumulated other comprehensive loss

 

(113,984)

 

(115,293)

Total stockholders’ equity

 

266,945

 

238,529

Total liabilities and stockholders’ equity

$

916,181

$

841,325

The accompanying notes are an integral part of these consolidated financial statements

5

PHIBRO ANIMAL HEALTH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months

For the Periods Ended March 31

    

2022

    

2021

(unaudited)

(in thousands)

OPERATING ACTIVITIES

 

  

 

  

Net income

$

41,688

$

37,264

Adjustments to reconcile net income to

 

 

net cash provided (used) by operating activities:

 

 

Depreciation and amortization

 

24,300

 

24,042

Amortization of debt issuance costs

 

442

 

662

Stock-based compensation

 

 

1,129

Acquisition-related items

 

78

 

Deferred income taxes

 

(120)

 

18

Foreign currency (gains), net

 

(13,492)

 

(7,293)

(Gain) on sale of investment

(1,203)

Other

 

284

 

389

Changes in operating assets and liabilities, net of business acquisition:

 

 

Accounts receivable, net

 

(10,815)

 

(8,410)

Inventories, net

 

(30,548)

 

(8,091)

Other current assets

 

(1,879)

 

3,746

Other assets

 

(2,364)

 

(1,019)

Accounts payable

 

19,961

 

(751)

Accrued expenses and other liabilities

 

3,743

 

3,550

Net cash provided by operating activities

 

30,075

 

45,236

INVESTING ACTIVITIES

 

  

 

  

Purchases of short-term investments

 

(54,100)

 

(50,000)

Maturities of short-term investments

 

75,000

 

61,000

Capital expenditures

(25,154)

(22,226)

Business acquisition

(10,786)

Sale of investment

1,353

Other, net

 

645

 

(164)

Net cash used by investing activities

 

(13,042)

 

(11,390)

FINANCING ACTIVITIES

 

 

Revolving credit facility borrowings

 

215,000

 

135,000

Revolving credit facility repayments

 

(186,000)

 

(128,000)

Payments of long-term debt and other

 

(5,625)

 

(14,063)

Dividends paid

 

(14,581)

 

(14,569)

Payment of contingent consideration

(4,840)

Net cash provided (used) by financing activities

 

3,954

 

(21,632)

Effect of exchange rate changes on cash

 

(451)

 

546

Net increase in cash and cash equivalents

 

20,536

 

12,760

Cash and cash equivalents at beginning of period

 

50,212

 

36,343

Cash and cash equivalents at end of period

$

70,748

$

49,103

The accompanying notes are an integral part of these consolidated financial statements

6

PHIBRO ANIMAL HEALTH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Accumulated

Others

Shares of

Comprehensive

Common

Common

Preferred

Paid-in

Retained

Income

    

Stock

    

Stock

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

(unaudited)

(in thousands, except share and per share amounts)

As of June 30, 2021

    

40,503,608

$

4

$

$

135,803

$

218,015

$

(115,293)

$

238,529

Comprehensive income (loss)

6,534

(6,898)

(364)

Dividends declared ($0.12 per share)

 

 

 

 

 

(4,860)

 

 

(4,860)

As of September 30, 2021

40,503,608

$

4

$

$

135,803

$

219,689

$

(122,191)

$

233,305

Comprehensive income (loss)

17,465

(6,615)

10,850

Dividends declared ($0.12 per share)

(4,861)

(4,861)

As of December 31, 2021

 

40,503,608

$

4

$

$

135,803

$

232,293

$

(128,806)

$

239,294

Comprehensive income

17,689

14,822

32,511

Dividends declared ($0.12 per share)

(4,860)

(4,860)

As of March 31, 2022

40,503,608

$

4

$

$

135,803

$

245,122

$

(113,984)

$

266,945

    

    

  

    

  

Other

Shares of

Comprehensive

Common

Common

Preferred

Paid-in

Retained

Income

    

Stock

    

Stock

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

(unaudited)

(in thousands, except share and per share amounts)

As of June 30, 2020

40,453,608

$

4

$

$

135,525

$

183,060

$

(130,385)

$

188,204

Comprehensive income (loss)

 

 

 

 

 

12,302

 

(3,805)

 

8,497

Dividends declared ($0.12 per share)

 

 

 

 

 

(4,854)

 

 

(4,854)

Stock-based compensation expense

 

 

 

 

565

 

 

 

565

As of September 30, 2020

40,453,608

$

4

$

$

136,090

$

190,508

$

(134,190)

$

192,412

Comprehensive income

12,801

12,400

25,201

Dividends declared ($0.12 per share)

(4,855)

(4,855)

Stock-based compensation expense

564

564

As of December 31, 2020

 

40,453,608

$

4

$

$

136,654

$

198,454

$

(121,790)

$

213,322

Comprehensive income (loss)

12,161

(4,702)

7,459

Shares issued pursuant to stock incentive plan

50,000

Dividends declared ($0.12 per share)

(4,860)

(4,860)

As of March 31, 2021

40,503,608

$

4

$

$

136,654

$

205,755

$

(126,492)

$

215,921

The accompanying notes are an integral part of these consolidated financial statements

7

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share amounts)

(unaudited)

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, dairy and beef cattle, swine, 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 nine months ended March 31, 2022 and 2021, 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, 2021 (the “Annual Report”), filed with the Securities and Exchange Commission on August 25, 2021 (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, 2021, 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 preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition will depend on future developments that are uncertain. Although vaccines are available, distribution efforts vary widely country-by-country and state-by-state. New information may continue to emerge concerning COVID-19, and the actions required to contain or treat it may affect the duration and severity of the pandemic. The pandemic may have significant economic impacts on customers, suppliers and markets. The pandemic may affect our future revenues, expenses, reserves and allowances, manufacturing operations and employee-related costs. Our financial statements include estimates of the effects of COVID-19 and there may be changes to those estimates in future periods.

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 to consolidate an entity requires consideration of majority voting interests, as well as effective control over the entity.

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. As of March 31, 2022, there have been no material changes to any of the significant accounting policies contained therein.

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 vesting of

8

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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. There are no outstanding restricted stock units as of March 31, 2022.

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

Net income

$

17,689

$

12,161

$

41,688

$

37,264

Weighted average number of shares – basic

 

40,504

 

40,483

 

40,504

 

40,463

Dilutive effect of restricted stock units

 

 

21

 

 

41

Weighted average number of shares – diluted

 

40,504

 

40,504

 

40,504

 

40,504

Net income per share

 

 

 

 

basic

$

0.44

$

0.30

$

1.03

$

0.92

diluted

$

0.44

$

0.30

$

1.03

$

0.92

New Accounting Standards

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2021-10 Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance has established annual disclosure requirements over transactions with a government that are accounted for by applying a grant accounting model to include the nature of the transactions and the related accounting policy used to account for the transactions, the line items and the amounts included in the balance sheet and income statement, and the significant terms and conditions of the transactions (including commitments and contingencies). The disclosures are required for the annual periods beginning after December 15, 2021. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements.

ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, requires revenue contract assets and liabilities acquired in a business combination be recognized and measured under the revenue standard provided in Topic 606. Under previous guidance, revenue contract assets and liabilities would have been measured at fair value. The ASU is required to be adopted for annual periods beginning after December 15, 2022. Early adoption is permitted and would be applied retrospectively in the year adopted. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements.

ASU 2020-04 and 2021-01, Reference Rate Reform (Topic 848), provide optional expedients and exceptions to GAAP guidance, if certain criteria are met, for contracts, hedging relationships and derivative instruments that reference the London Interbank Offered Rate (LIBOR) and other interbank offered rates expected to be discontinued or modified by rate reform. The overall purpose of Topic 848 is to ease the financial reporting burdens related to the expected market transition to alternative reference rates. These ASUs may be applied prospectively to contract modifications made and hedging relationships entered on or before December 31, 2022. We continue to evaluate the effect of adoption of this guidance on our consolidated financial statements.

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. ASU 2019-12 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. The adoption did not have a material effect on our consolidated financial statements.

3.  Statements of Operations—Additional Information

Disaggregated revenue, deferred revenue and customer payment terms

We develop, manufacture and market a broad range of products for food animals including poultry, beef and dairy cattle, swine, 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, cattle, and swine integrators and through commercial animal feed manufacturers, wholesalers and distributors. The animal health industry and demand

9

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

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 on 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. MFAs and other also include other processing aids used to improve production efficiency in the ethanol fermentation industry.
Nutritional specialties: Nutritional specialty products enhance nutrition to help improve health and performance in areas such as immune system function and digestive health. We are also a developer, manufacturer and marketer of microbial products and bioproducts for a variety of applications serving animal health and nutrition, environmental, industrial and agricultural customers.
Vaccines: Our vaccines are primarily focused on preventing diseases in poultry and swine. They protect animals from either viral or bacterial disease challenges. We develop, manufacture and market conventionally licensed and autogenous vaccine products and 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. Our 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 beef and dairy cattle, swine and poultry.

Performance Products

The Performance Products business manufactures and markets specialty ingredients for use in the personal care, industrial chemical and chemical catalyst industries, predominantly in the United States.

10

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following tables present our revenues disaggregated by major product category and geographic region:

Net Sales by Product Type

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

Animal Health

 

  

 

  

  

 

  

MFAs and other

$

84,330

$

78,530

$

259,812

$

238,810

Nutritional specialties

 

41,394

 

36,978

 

114,721

 

105,972

Vaccines

 

22,865

 

18,872

 

65,987

 

54,205

Total Animal Health

$

148,589

$

134,380

$

440,520

$

398,987

Mineral Nutrition

 

69,033

 

58,153

 

190,120

 

163,750

Performance Products

 

21,997

 

19,196

 

56,356

 

50,335

Total

$

239,619

$

211,729

$

686,996

$

613,072

Net Sales by Region

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

United States

$

146,820

$

129,370

$

412,284

$

370,446

Latin America and Canada

 

45,048

 

37,386

 

135,722

 

115,808

Europe, Middle East and Africa

 

29,931

 

27,802

 

90,889

 

84,959

Asia Pacific

 

17,820

 

17,171

 

48,101

 

41,859

Total

$

239,619

$

211,729

$

686,996

$

613,072

Net sales by region are based on country of destination.

Deferred revenue was $2,697 and $3,674 as of March 31, 2022, and June 30, 2021, respectively. Accrued expenses and other current liabilities included $1,383 and $1,560 of the total deferred revenue as of March 31, 2022, and June 30, 2021, 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 days after the revenue is recognized.

11

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Interest Expense and Depreciation and Amortization

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

Interest expense, net

Term loan

$

2,208

$

1,857

$

6,745

$

5,796

Revolving credit facility

 

690

 

938

 

1,936

 

3,017

Amortization of debt issuance costs

 

147

 

221

 

442

 

662

Other

 

67

 

65

 

156

 

191

Interest expense

 

3,112

 

3,081

 

9,279

 

9,666

Interest income

 

(187)

 

(148)

 

(512)

 

(709)

$

2,925

$

2,933

$

8,767

$

8,957

Three Months

Nine Months

For the Periods Ended March 31

    

2022

    

2021

    

2022

    

2021

Depreciation and amortization

 

 

  

 

 

  

Depreciation of property, plant and equipment

$

6,214

$

5,763

$

17,792

$

17,479

Amortization of intangible assets

 

2,231

 

2,155

 

6,508

 

6,563

$

8,445

$

7,918

$

24,300

$

24,042

4.  Balance Sheets—Additional Information

March 31, 

June 30, 

As of

    

2022

    

2021

Inventories

  

Raw materials

$

85,255

$

59,775

Work-in-process

12,900

12,738

Finished goods

151,756

143,799

$

249,911

$

216,312

    

March 31, 

June 30, 

As of

    

2022

    

2021

Other assets

ROU operating lease assets

$

38,691

 

$

32,962

Deferred income taxes

 

4,097

 

9,861

Deposits

 

6,293

 

5,663

Insurance investments

 

6,054

 

5,964

Equity method investments

 

4,063

 

4,141

Derivative instruments

14,560

2,696

U.S. pension plan

 

2,482

 

1,184

Debt issuance costs

 

1,530

 

1,811

Other

8,774

8,467

$

86,544

 

$

72,749

In February 2022, we acquired a business for $13,728, of which $3,166 is outstanding at March 31, 2022 and payable during the fourth quarter ending June 30, 2022. The business develops, manufactures and markets processing aids used to improve production efficiency in the ethanol fermentation industry. We accounted for the acquisition as a business combination in accordance with ASC 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. Definite-lived intangible assets of $10,833 were recognized at acquisition and included developed products, tradename, and non-compete agreements. The definite-lived intangible assets will be amortized over periods ranging from 4 to 13 years. The remaining net assets acquired include accounts receivable, inventories, prepaid and other assets, accounts payable, accrued expenses, and goodwill. Goodwill is deductible for income tax purposes. The purchase price

12

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

allocation is preliminary and subject to change, including final working capital adjustments. The business is included in the MFAs and other product category under the Animal Health segment.

    

March 31,

    

June 30,

As of

    

2022

    

2021

Goodwill

 

  

 

  

Balance at beginning of period

$

52,679

$

52,679

Acquisition

 

595

 

Foreign currency translation

 

47

 

Balance at end of period

$

53,321

$

52,679

    

March 31, 

    

June 30, 

As of

    

2022

    

2021

Accrued expenses and other current liabilities

 

  

 

  

Employee related

$

30,601

$

35,375

Current operating lease liabilities

 

6,431

 

6,618

Commissions and rebates