Segment Information And Geographic Data

12 Months Ended

Dec. 31, 2014

Segment Information And Geographic Data [Abstract]

Segment Information And Geographic Data

Note 20 — Segment Information and Geographic Data

The Company reports segment information based on the internal reporting used by management for evaluating segment performance based on management’s estimates of the appropriate allocation of resources to segments.

The Company operates and manages its business primarily on a geographic basis. Accordingly, the Company determined its operating segments and reporting units, which are generally based on the nature and location of its customers, to be 1) China, and 2) Rest of the World, including the US and Hong Kong.

The Company evaluates the performance of its operating segments based on revenues and operating income (loss). Revenues for geographic segments are generally based on the location of customers. Operating income (loss) for each segment includes revenues, related cost of sales and operating expenses directly attributable to the segment. Operating income (loss) for each segment excludes non-operating income and expense.

Summary information by operating segments is as follows (in thousands):

	For the Year Ended December 31,
	2014			2013			2012
Revenue:
China	$	130,311		$	122,616		$	152,227
Rest of the World (including the US and Hong Kong)		4,479			4,442			4,042
Total net revenues	$	134,790		$	127,058		$	156,269
Income (loss) from operations:
China	$	35,630	(1)	$	30,557	(2)	$	4,216	(5)
Rest of the World (including the US and Hong Kong)		(9,646)			(20,128)	(3)		2,194	(6)
Total income from operations	$	25,984		$	10,429		$	6,410
Non-operating income (expense):
China	$	412		$	233		$	(122)
Rest of the World (including the US and Hong Kong)		(19)			2,544	(4)		(16)
Total non-operating income (expense)	$	393		$	2,777		$	(138)
Income (loss) before provision (benefit) for income tax:
China	$	36,042		$	30,790		$	4,094
Rest of the World (including the US and Hong Kong)		(9,665)			(17,584)			2,178
Total income before provision (benefit) for income tax	$	26,377		$	13,206		$	6,272

(1) Operating income for the China segment for the year ended December 31, 2014 includes upfront payments totaling $11.0 million related to the Company’s licensing arrangements.

(2) Operating income for the China segment for the year ended December 31, 2013 includes upfront payments totaling $5.0 million related to the Company’s licensing arrangements and $1.2 million in restructuring charges related to the non-renewal of the Company’s promotional agreements with Sanofi.

(3) Operating loss for the Rest of the World segment includes$2.0 million of expense that the Company recorded for the year ended December 31, 2013 to reflect the Company’s estimate of a probable loss incurred related to potential penalties, fines and/or other remedies related to the SEC and DOJ ongoing investigations.

(4) Non-operating income (expense) for the Rest of the World segment for the year ended December 31, 2013 includes the escrow settlement of $2.6 million recorded to other income.

(5) The operating income for the China segment for the year ended December 31, 2012, includes the $42.7 million impairment charge for intangible assets.

(6) Operating income (loss) for the Rest of the World segment includes the change in the fair value of the contingent consideration in 2012.

Long-lived assets as of December 31, 2014 by operating segment are as follows (in thousands):

China	$	41,092
Rest of the World (including the US and Hong Kong)		542
Total long-lived assets	$	41,634