Segment Information

12 Months Ended

Dec. 31, 2019

We operate under two reportable segments: Healthcare and Research. The Healthcare segment is focused on remote cardiac monitoring to identify cardiac arrhythmias or heart rhythm disorders and to monitor the functionality of implantable cardiac devices. We offer cardiologists, electrophysiologists, neurologists and primary care physicians a full spectrum of solutions, which provides them with a single source of remote cardiac monitoring services. These services include MCT, event, traditional Holter, extended Holter, Pacemaker, INR, ILR and other implantable cardiac device monitoring. The majority of our Healthcare revenue is derived from the monitoring of devices that BioTelemetry has developed, manufactured and marketed. The Research segment is engaged in centralized core laboratory services providing cardiac monitoring, imaging services, scientific consulting and data management services for drug and medical device trials. During the first quarter of 2018, as part of the LifeWatch integration, our forward-looking integration and rebranding plans, as well as re-evaluating the significance and materiality of our segments, we aggregated our Technology operating segment into our Corporate and Other category. Included in our Corporate and Other category is the manufacturing, testing and marketing of cardiac and blood glucose monitoring devices to medical companies, clinics and hospitals and corporate overhead and other items not allocated to any of our reportable segments.

Expenses that can be specifically identified with a segment have been included as deductions in determining pre-tax segment income/(loss). Any remaining expenses including integration, restructuring and other charges, as well as the elimination of costs associated with intercompany revenue, are included in our Corporate and Other category. Also included in our Corporate and Other category is our net interest expense, other financing expenses, and income taxes. We do not allocate assets to the individual segments.



	Year Ended December 31, 2019
	Reporting Segment				Corporate and Other			Consolidated
(in thousands)	Healthcare		Research		Corporate and Other			Consolidated
Revenue	$	372,014	$	54,450	$	12,643		$	439,107
Gross profit	251,114		20,164		2,996			274,274
Income/(loss) before income taxes	122,829		4,653		(87,754		)	39,728
Depreciation and amortization	34,972		4,047		3,957			42,976
Capital expenditures	25,543		3,591		1,573			30,707



	Year Ended December 31, 2018
	Reporting Segment				Corporate and Other			Consolidated
(in thousands)	Healthcare		Research		Corporate and Other			Consolidated
Revenue	$	338,812	$	50,561	$	10,099		$	399,472
Gross profit	220,883		21,603		8,000			250,486
Income/(loss) before income taxes	98,135		6,228		(62,859		)	41,504
Depreciation and amortization	33,119		3,723		3,326			40,168
Capital expenditures	20,258		3,272		1,107			24,637



	Year Ended December 31, 2017
	Reporting Segment				Corporate and Other			Consolidated
(reclassified, in thousands)	Healthcare		Research		Corporate and Other			Consolidated
Revenue	$	234,385	$	38,790	$	13,601		$	286,776
Gross profit	153,029		15,909		3,432			172,370
Income/(loss) before income taxes	52,054		1,214		(63,664		)	(10,396		)
Depreciation and amortization	29,255		4,148		(4,842		)	28,561
Capital expenditures	12,542		1,274		(119		)	13,697