Segment and Geographical Information |
Segment and Geographical Information Segment Information The Company’s 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 and services. The Company’s Automation and Analytics products are designed to enable its customers to improve the effectiveness of the medication-use process and the efficiency of the medical-surgical supply chain, and contribute to better patient care and financial outcomes of medical facilities. The products in this segment are sold primarily to acute care (hospital) facilities. The financial results of InPharmics, acquired in the second quarter of 2017, and Aesynt, acquired in the first quarter of 2016, are included in the Automation and Analytics segment. |
| | • | Medication Adherence. The Medication Adherence segment primarily includes the development, manufacturing and selling of solutions to assist patients in becoming and remaining adherent to their medication regimens. These solutions comprise a variety of tools and aids that may be directly used by a pharmacist or a healthcare provider in their direct care for a patient, or used by patients themselves. Products include software-based systems, medication adherence packaging, equipment for fulfilling the packaging and ancillary products and services. These products, which are sold under the brand names SureMed and Omnicell, are used to manage medication administration outside of the hospital setting. The financial results of Ateb, acquired in the fourth quarter of 2016, is included in the Medication Adherence segment. |
The following table summarizes the financial performance of the Company’s reporting segments, including a reconciliation of income from segment operations to income from total operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | | Automation and Analytics | | Medication Adherence | | Total | | Automation and Analytics (1) | | Medication Adherence | | Total | | Automation and Analytics (1) | | Medication Adherence | | Total | | (In thousands) | Revenues: | | | | | | | | | | | | | | | | | | Product revenues | $ | 462,379 |
| | $ | 107,216 |
| | $ | 569,595 |
| | $ | 407,427 |
| | $ | 102,774 |
| | $ | 510,201 |
| | $ | 433,524 |
| | $ | 94,203 |
| | $ | 527,727 |
| Services and other revenues | 193,300 |
| | 24,414 |
| | 217,714 |
| | 179,514 |
| | 22,999 |
| | 202,513 |
| | 163,387 |
| | 4,794 |
| | 168,181 |
| Total revenues | 655,679 |
| | 131,630 |
| | 787,309 |
| | 586,941 |
| | 125,773 |
| | 712,714 |
| | 596,911 |
| | 98,997 |
| | 695,908 |
| Cost of revenues: | | | | | | | | | | | | | | | | | | Cost of product revenues | 231,003 |
| | 81,357 |
| | 312,360 |
| | 230,003 |
| | 74,839 |
| | 304,842 |
| | 239,062 |
| | 63,375 |
| | 302,437 |
| Cost of services and other revenues | 88,254 |
| | 14,365 |
| | 102,619 |
| | 78,440 |
| | 10,795 |
| | 89,235 |
| | 71,905 |
| | 4,481 |
| | 76,386 |
| Total cost of revenues | 319,257 |
| | 95,722 |
| | 414,979 |
| | 308,443 |
| | 85,634 |
| | 394,077 |
| | 310,967 |
| | 67,856 |
| | 378,823 |
| Gross profit | 336,422 |
| | 35,908 |
| | 372,330 |
| | 278,498 |
| | 40,139 |
| | 318,637 |
| | 285,944 |
| | 31,141 |
| | 317,085 |
| Operating expenses | 188,303 |
| | 41,430 |
| | 229,733 |
| | 184,857 |
| | 41,735 |
| | 226,592 |
| | 186,872 |
| | 24,843 |
| | 211,715 |
| Income (loss) from operations | $ | 148,119 |
| | $ | (5,522 | ) | | $ | 142,597 |
| | $ | 93,641 |
| | $ | (1,596 | ) | | $ | 92,045 |
| | $ | 99,072 |
| | $ | 6,298 |
| | $ | 105,370 |
| Corporate costs | | | | | 98,205 |
| | | | | | 80,900 |
| | | | | | 83,965 |
| Income from operations | | | | | $ | 44,392 |
| | | | | | $ | 11,145 |
| | | | | | $ | 21,405 |
|
___________________________________________ | | (1) | As adjusted for full retrospective adoption of ASC 606. |
Significant Customers There were no customers that accounted for more than 10% of the Company’s total revenues or accounts receivable balance at and for the years ended December 31, 2018, December 31, 2017, and December 31, 2016, respectively. Geographical Information Revenues | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | | (In thousands) | United States | $ | 685,881 |
| | $ | 613,817 |
| | $ | 594,851 |
| Rest of world (1) | 101,428 |
| | 98,897 |
| | 101,057 |
| Total revenues | $ | 787,309 |
| | $ | 712,714 |
| | $ | 695,908 |
|
___________________________________________ | | (1) | No individual country represented more than 10% of the respective totals. |
Property and Equipment, Net | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | | (In thousands) | United States | $ | 44,684 |
| | $ | 34,899 |
| | $ | 36,497 |
| Rest of world (1) | 6,816 |
| | 7,696 |
| | 5,514 |
| Total property and equipment, net | $ | 51,500 |
| | $ | 42,595 |
| | $ | 42,011 |
|
____________________________________________ | | (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.
|