Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT INFORMATION

During the three and six month periods ended June 30, 2016 and 2015, respectively, the Company reported results for the following two reportable segments:

-    Prescription Pharmaceuticals

-    Consumer Health

The Company’s Prescription Pharmaceutical segment principally consists of generic and branded prescription pharmaceuticals products which span a broad range of indications as well as a variety of dosage forms including: sterile ophthalmics, injectables and inhalants, and non-sterile oral liquids, topicals and nasal sprays. The Company’s Consumer Health segment principally consists of animal health and OTC products, both branded and private label.  OTC products include, but are not limited to, a suite of products for the treatment of dry eye sold under the TheraTears^® brand name.

Financial information about the Company’s reportable segments is based upon internal financial reports that aggregate certain operating information. The Company’s Chief Operating Decision Maker (“CODM”), as defined in ASC 280 - Segment Reporting, who is also the CEO, oversees operational assessments and resource allocations based upon the results of the Company’s reportable segments, which have available and discrete financial information.

Selected financial information by reportable segment is presented below (in thousands).

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues:
Prescription Pharmaceuticals	$	265,015		$	206,062		$	515,764		$	416,616
Consumer Health	15,719			14,858			33,317			31,682
Total revenues	280,734			220,920			549,081			448,298
Gross Profit:
Prescription Pharmaceuticals	164,492			120,929			319,127			242,088
Consumer Health	7,281			7,478			15,663			16,482
Total gross profit	171,773			128,407			334,790			258,570
Operating expenses	79,405			62,305			154,843			119,201
Operating income	92,368			66,102			179,947			139,369
Other expense	(12,093		)	(15,744		)	(33,100		)	(30,683		)
Income before income taxes	$	80,275		$	50,358		$	146,847		$	108,686

The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. Inter-segment activity at the gross profit level is minimal. The Company does not have discrete assets by segment, as certain manufacturing and warehouse facilities support more than one segment, and therefore does not report assets by segment. Financial information including revenues and gross profit from external customers by product or product line are not provided as to do so would be impracticable.