SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

The Company reports segment information on the "management" approach which designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company's chief operating decision maker ("CODM") is responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure. The Company is organized into two reportable operating segments: Affymetrix Core and eBioscience.

Affymetrix Core is divided into four business units, with each business unit having its own strategic marketing and research and development groups to better serve customers and respond quickly to market needs. Affymetrix Core manufacturing operations are based on platforms that are used to produce various Affymetrix Core products that serve multiple applications and markets and similar customer and economic characteristics. Additionally, the business units share certain research, development, commercial operations and common corporate services that provide capital, infrastructure and functional support. As such, the Company concluded that the four business units represent one reportable operating segment. The following describes the four business units that form Affymetrix Core:

• Expression: This business unit markets the Company's GeneChip gene expression products and services;

• Genetic Analysis and Clinical Applications: This business unit markets the Company's Axiom genotyping product line, as well as products with clinical diagnostic and research applications including CytoScan products, OncoScan products, and the ViewRNA in situ tissue hybridization platform for clinical translational research. In addition, the business unit is responsible for managing the PbA clinical partnering and licensing program which enables third-party diagnostic companies to access and develop DNA and RNA-based diagnostic tests based on Affymetrix technology platforms. This business unit also markets the CytoScan Dx product, an FDA cleared microarray system used as an aid for the post-natal diagnosis of children with developmental delays and intellectual disabilities;

• Life Science Reagents: This business unit sells reagents, enzymes, purification kits and biochemicals used by life science researchers and other biological and health care manufacturers, including those developing and marketing Next Generation Sequencing (“NGS”) products and molecular diagnostics; and

• Corporate: This business unit is comprised primarily of incidental revenue from royalty arrangements and field revenue from field-services provided to customers of the Company.

The eBioscience business unit operates with its own manufacturing, research and development, and marketing groups. The business unit does utilize certain Corporate functions such as finance, legal, commercial operations and human resources. This reportable segment specializes in the areas of flow cytometry reagents, immunoassays, microscopic imaging, other protein-based analyses, QuantiGene single and multiplex RNA solution assays (not including the View RNA in situ tissue hybridization platform) and the ProcartaPlex™ multiplex immunoassay product lines.

eBioscience began integrating the development and marketing of the QuantiGene (excluding the ViewRNA in-situ hybridization platform) and Procarta product lines during 2013 with full integration in 2014. These products were previously reported by the Expression Business Unit of the Affymetrix Core reportable segment. Accordingly, segment information for prior periods has been restated to reflect these changes for purposes of comparability.

During 2015, the commercial organization and general and administrative functions were fully integrated. The Company no longer reports these operating expenses at a segment level and began evaluating the performance of its reportable segments based on revenue and gross profit. Revenue is allocated to each business unit based on product codes. The amounts for prior periods have been recast to conform to the current presentation.

The following table shows revenue and income (loss) from operations by reportable operating segment for the years ended December 31, 2015, 2014, or 2013 (in thousands):

	Year Ended December 31,
	2015		2014		2013
Revenue:
Affymetrix Core	$	261,733	$	256,525	$	241,450
eBioscience	98,053		92,494		88,949
Total revenue	$	359,786	$	349,019	$	330,399
Gross Profit
Affymetrix Core	$	168,526	$	155,786	$	144,160
eBioscience	60,715		50,075		36,878
Total gross profit	$	229,241	$	205,861	$	181,038

The Company reported total revenue by region as follows (in thousands):

	Year Ended December 31,
	2015		2014 (1)		2013 (1)
Customer location:
United States	$	193,785	$	172,607	$	163,366
Europe	92,546		109,959		109,228
APAC	53,833		47,863		41,063
Other	19,622		18,590		16,742
Total	$	359,786	$	349,019	$	330,399

(1)    The revenue by region for the years ended December 31, 2014 and 2013 have been corrected from amounts previously reported.

There were no customers representing 10% or more of total revenue in 2015, 2014 or 2013.

The Company's long-lived assets other than purchased intangible assets, which the Company does not allocate to specific geographic locations as it is impracticable to do so, are composed principally of net property and equipment.

Net property and equipment, classified by major geographic areas in which the Company operates was as follows (in thousands):

	Year Ended December 31,
	2015		2014
Net property and equipment:
United States	$	17,443	$	14,023
Singapore	2,476		2,549
Europe	890		1,265
Other countries	191		250
Total	$	21,000	$	18,087