Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

During the year ended December 31, 2014, the Company acquired Hi-Tech and as a result, underwent a change in the organizational and reporting structure of the Company’s reportable segments, establishing two reporting segments that each report to the Chief Operating Decision Maker (“CODM”), as defined in ASC Topic 280 - Segment Reporting, and CEO. Our performance will is assessed and resources allocated by the CODM based on 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 a suite of products for the treatment of dry eye sold under the TheraTears® brand name.

Financial information about each of the Company’s reportable segments is based upon internal financial reports that aggregate certain operating information. The Company’s 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 reporting segment is presented below (in thousands):

	Years ended December 31,
	2016		2015		2014
REVENUES, NET:
Prescription Pharmaceuticals	$	1,053,579	$	924,472	$	504,688
Consumer Health	63,264		60,604		50,360
Total revenues, net	$	1,116,843	$	985,076	$	555,048
GROSS PROFIT:
Prescription Pharmaceuticals	$	645,078	$	566,298	$	233,833
Consumer Health	29,193		29,714		27,527
Total gross profit	$	674,271	$	596,012	$	261,360

The Company manages its reportable 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 is not provided, as to do so would be impracticable.

During the years ended December 31, 2016, 2015 and 2014, approximately $26.3 million, $37.0 million and $16.6 million of the Company’s net revenue, respectively, was from customers located in foreign countries.   All of the net revenue is related to our Prescription Pharmaceutical segment.

Goodwill from the Company’s acquisition of Advanced Vision Research, Inc. in May 2011, the acquisition of selected assets of Kilitch Drugs (India) Limited in February 2012, the acquisition of Hi-Tech and subsequent disposal of the Watson assets on April 17, 2014, the disposal of the ECR component on June 20, 2014 and the acquisition of VersaPharm on August 12, 2014, have been allocated to the appropriate reportable segment and reporting unit.  The carrying amounts of goodwill by segment were as follows (in thousands):

	Prescription Pharmaceuticals			Consumer Health		Total
December 31, 2014	$	268,566		$	16,717	$	285,283
Acquisitions and other adjustments	—			—		—
Impairments	—			—		—
Dispositions	—			—		—
Foreign currency translations	(573		)	—		(573		)
December 31, 2015	$	267,993		$	16,717	$	284,710
Acquisitions and other adjustments	—			—		—
Impairments	—			—		—
Dispositions	—			—		—
Foreign currency translations	(417		)	—		(417		)
December 31, 2016	$	267,576		$	16,717	$	284,293