(14)	Segment Information

Cambrex is a life sciences company that provides products and services that accelerate and improve the development and commercialization of new and generic therapeutics. The Company primarily supplies its products and services worldwide to innovator and generic pharmaceutical companies.

Including the Company’s acquisition of Halo Pharma on September 12, 2018, Cambrex has six manufacturing facilities.

Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer) in making decisions on how to allocate resources and assess performance. To be in alignment with the financial information received by the Chief Executive Officer and how the business is managed, the Company’s operating segments were aggregated to form two reportable segments, Active Pharmaceutical Ingredients (“APIs”) and Finished Dosage Form (“FDF”). While there are regulatory similarities between the two segments the products are different in that the API segment produces products that are sold to pharmaceutical companies that further process the Company’s product into a finished dosage form product that is then distributed directly to the patient. The FDF segment only manufactures and develops final dosage form products. All purchase accounting adjustments are recorded by the reporting segment.

API’s: The Company’s API segment is comprised of the custom development and manufacture of pharmaceutical ingredients derived from organic chemistry. Products consist of APIs and pharmaceutical intermediates for use in the production of prescription and over-the-counter drug products.

FDF: The Company’s FDF segment consists of contract development and commercial manufacturing of finished dosage form products including oral solids, liquids and creams, and sterile and non-sterile ointments.

The Company’s Corporate headquarters provides management and administrative services to support the Company, and consists of certain aspects of the Company’s executive management, corporate relations, legal, compliance, human resources, information technology and finance departments. The Company allocates certain corporate expenses to each of its segments. Depreciation and amortization on certain assets are not allocated to the Company’s reportable segments.

The Company evaluates the performance of its segments based on segment operating profit. Transactions between reportable segments are not material. The Company does not allocate interest expense or income taxes to the operating segments. Discontinued operations are not recorded by the reportable segments. The Company accounts for total assets on a consolidated basis and does not allocate or disclose it for each reportable segment. The chief operating decision maker does not review segment’s assets.

The following table summarizes the Company’s financial information by reportable segment:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Gross sales by segment
APIs	$	99,445		$	112,233		$	385,789		$	350,431
FDF		4,786			-			4,786			-
Total reported gross sales		104,231			112,233			390,575			350,431

Operating profit/(loss) by segment
APIs		16,872			31,932			101,436			106,779
FDF		114			-			114			-
Total segment operating profit		16,986			31,932			101,550			106,779
Corporate operating loss		(10,354	)		(6,389	)		(19,885	)		(18,670	)
Total reported operating profit	$	6,632		$	25,543		$	81,665		$	88,109