Segment Information And Geographic Data

12 Months Ended

Dec. 31, 2012

Segment Information And Geographic Data [Abstract]

Segment Information And Geographic Data

Note 19 — 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.

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 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,
				2011
				Restated
	2012			(Note 2)		2010
China:
Net Revenues:
ZADAXIN product sales	$	108,127		$	101,193	$	82,012
Other product sales		11,002			7,121		—
Total net product sales		119,129			108,314		82,012
Promotion services revenue		33,098			20,614		—
Total net revenues		152,227			128,928		82,012
Operating income		4,216	(1)		47,154		43,754
Long-lived assets		35,541			79,694		202
Rest of the World (including the US):
Net Revenues:
ZADAXIN product sales	$	4,042		$	3,637	$	3,100
Total net revenues		4,042			3,637		3,100
Operating income (loss) (2)		2,194			(18,199)		(21,360)
Long-lived assets		832			1,092		1,277

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

Operating income (loss) for the Rest of the World segment includes the change in the fair value of the contingent consideration and all research and development expense for the Company’s SCV-07 trial, which was discontinued in the first quarter of 2012.