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, which represents the Finished Dosage Form (“FDF”) segment, 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 five operating segments were aggregated to form two reportable segments, Active Pharmaceutical Ingredients (“APIs”) and FDF. 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. APIs are used 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, 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:

	2018			2017			2016
Gross sales by segment
APIs	$	489,132		$	525,936		$	491,538
FDF		25,865		-			-
Total reported gross sales		514,997			525,936			491,538

Operating profit/(loss) by segment
APIs		130,721			168,330			148,073
FDF		(605	)	-			-
Total segment operating profit		130,116			168,330			148,073
Corporate operating loss		(28,620	)		(23,912	)		(18,017	)
Total reported operating profit	$	101,496		$	144,418		$	130,056

The following summarized data represents the gross sales and long lived assets for the Company’s domestic and foreign entities for 2018, 2017 and 2016:

	Domestic		Foreign		Total
2018
Gross sales	$	275,369	$	239,628	$	514,997
Long-lived assets		568,801		240,027		808,828
2017
Gross sales	$	312,895	$	213,041	$	525,936
Long-lived assets		143,540		168,253		311,793
2016
Gross sales	$	270,773	$	220,765	$	491,538
Long-lived assets		136,692		135,523		272,215

Export sales, included in domestic gross sales, in 2018, 2017 and 2016 amounted to $138,613, $195,193 and $182,215, respectively.

	2018		2017		2016
Europe	$	301,970	$	327,309	$	321,525
North America		183,022		170,490		138,328
Asia		17,101		17,625		17,996
Other		12,904		10,512		13,689
Total	$	514,997	$	525,936	$	491,538

One customer from both the API and FDF segment, accounted for 24.8%, 35.1% and 36.9% of 2018, 2017 and 2016 consolidated gross sales, respectively. Substantially all of the sales to this customer are within the API segment.