Segment Information

During the three month periods ended March 31, 2018 and 2017, 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,
	2018			2017
Revenues, net:
Prescription Pharmaceuticals	$	164,302		$	237,379
Consumer Health	19,761			16,041
Total revenues, net	184,063			253,420

Gross Profit:
Prescription Pharmaceuticals	73,508			140,956
Consumer Health	8,720			7,813
Total gross profit	82,228			148,769

Operating expenses	107,643			74,356

Operating (loss) income	(25,415		)	74,413
Other expenses, net	(10,612		)	(9,087		)

(Loss) Income before income taxes	$	(36,027	)	$	65,326

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.

The following table sets forth the Company’s net revenues by geographic region for the three month periods ended March 31, 2018 and 2017. The Domestic region represents sales within the United States of America ("U.S.") and its territories while the Foreign region represents sales within all other countries and territories (dollar amounts in thousands):



	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017
Region	Amount		% of Total Revenues	Amount		% of Total Revenues
Domestic	$	181,015	98.3%	$	245,703	97.0%
Foreign	3,048		1.7%	7,717		3.0%
Total Revenues	$	184,063	100.0%	$	253,420	100.0%