Segment Information And Geographic Data

12 Months Ended

Dec. 31, 2015

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,
	2015			2014			2013
Revenue:
China	$	151,573		$	130,311		$	122,616
Rest of the World (including the US and Hong Kong)		5,684			4,479			4,442
Total net revenues	$	157,257		$	134,790		$	127,058
Income (loss) from operations:
China	$	52,892	(1)	$	35,630	(3)	$	30,557	(4)
Rest of the World (including the US and Hong Kong)		(22,981)	(2)		(9,646)			(20,128)	(5)
Total income from operations	$	29,911		$	25,984		$	10,429
Non-operating income (expense):
China	$	349		$	412		$	233
Rest of the World (including the US and Hong Kong)		10			(19)			2,544	(6)
Total non-operating income	$	359		$	393		$	2,777
Income (loss) before provision for income tax:
China	$	53,241		$	36,042		$	30,790
Rest of the World (including the US and Hong Kong)		(22,971)			(9,665)			(17,584)
Total income before provision for income tax	$	30,270		$	26,377		$	13,206

(1) Operating income for the China segment for the year ended December 31, 2015 includes upfront and milestone payments totaling $5.5million related to the Company’s licensing arrangements.

(2) Operating loss for the Rest of the World segment for the year ended December 31, 2015 includes a milestone payment totaling $2.0million related to the Company’s licensing arrangements. Operating loss for the Rest of the World segment also includes $10.8million of expense that the Company recorded for the year ended December 31, 2015 associated with the SEC settlement related to the Company’s investigations with the SEC and DOJ. Refer to Part II, Item 8, Note 18 “Contingencies” and Note 22  “Subsequent Events” for further information regarding the SEC and DOJ investigations.

(3) 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.

(4) 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.

(5) 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 investigations.

(6) 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.

Long-lived assets by operating segment are as follows (in thousands):

	December 31,
Long-lived assets:	2015		2014
China	$	46,315	$	41,092
Rest of the World (including the US and Hong Kong)		1,783		542
Total long-lived assets	$	48,098	$	41,634