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Segment and Geographical Information
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment and Geographical Information
Segment and Geographical Information
Segment Information
The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The two operating segments, which are the same as the Company's two reportable segments, are as follows:
Automation and Analytics
The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Automation and Analytics products are designed to enable the Company's customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, the Company's systems can be tailored to specific customer needs. The financial results of Aesynt acquired in the first quarter of 2016 are included in the Automation and Analytics segment.
Medication Adherence
The Medication Adherence segment includes primarily the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. These products are used to manage medication administration outside of the hospital setting and include medication adherence products, which consist of proprietary medication packaging systems and related products for use by institutional pharmacies servicing long-term care, and correctional facilities or retail pharmacies serving patients in their local communities. The financial results of Ateb acquired in the fourth quarter of 2016 are included in the Medication Adherence segment.
The historical information presented has been retrospectively adjusted to reflect the new segment reporting.
The following table summarizes the financial performance of the Company's reporting segments:
 
Year Ended
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
 
Automation and
Analytics (2)
 
Medication
Adherence
(2)
 
Total
 
Automation and
Analytics (1)
 
Medication
Adherence (2)
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
(In thousands)
Revenues
$
593,626

 
$
98,997

 
$
692,623

 
$
390,321

 
$
94,238

 
$
484,559

 
$
354,095

 
$
86,805

 
$
440,900

Cost of revenues
310,967

 
67,856

 
378,823

 
171,943

 
64,686

 
236,629

 
151,327

 
55,713

 
207,040

Gross profit
282,659

 
31,141

 
313,800

 
218,378

 
29,552

 
247,930

 
202,768

 
31,092

 
233,860

Operating expenses
198,511

 
24,843

 
223,354

 
114,084

 
24,258

 
138,342

 
105,929

 
20,586

 
126,515

Income from operations
$
84,148

 
$
6,298

 
90,446

 
$
104,294

 
$
5,294

 
109,588

 
$
96,839

 
$
10,506

 
107,345

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate costs
 
 
 
 
83,965

 
 
 
 
 
60,956

 
 
 
 
 
57,762

Income from operations
 
 
 
 
$
6,481

 
 
 
 
 
$
48,632

 
 
 
 
 
$
49,583

_________________________________________________
(1) 
Includes Avantec and Mach4 results as of April 2015, the acquisition date.
(2) 
Includes Aesynt and Ateb results as of January and December 2016, respectively, the acquisition dates.
Significant customers
There were no customers that accounted for more than 10% of the Company's total revenues in 2016, 2015 and 2014.
Geographical Information
Revenues
 
Year Ended
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
 
(In thousands)
United States
$
591,566

 
$
403,375

 
$
394,234

Rest of world (1)
101,057

 
81,184

 
46,666

Total revenues
$
692,623

 
$
484,559

 
$
440,900

______________________________________________
(1)    No individual country represented more than 10% of the respective totals.
  Property and equipment, net
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
 
(In thousands)
United States
$
36,497

 
$
29,506

 
$
35,335

Rest of world (1)
5,514

 
2,803

 
843

Total property and equipment, net
$
42,011

 
$
32,309

 
$
36,178

_________________________________________________
(1)    No individual country represented more than 10% of the respective totals.
Property and equipment, net is attributed to the geographic location in which it is located.