Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

During the three month periods ended March 31, 2017 and 2016, the Company reported results for the following two reportable segments:

-    Prescription Pharmaceuticals

-    Consumer Health

The Company’s Prescription Pharmaceuticals 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 March 31,
	2017			2016
Revenues, net:
Prescription Pharmaceuticals	$	237,379		$	250,749
Consumer Health	16,041			17,598
Total revenues, net	253,420			268,347
Gross Profit:
Prescription Pharmaceuticals	141,319			154,635
Consumer Health	7,813			8,382
Total gross profit	149,132			163,017
Operating expenses	74,299			75,438
Operating income	74,833			87,579
Other expense	(9,507		)	(21,007		)
Income before income taxes	$	65,326		$	66,572

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 is not provided as to do so would be impracticable.