Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

In the first quarter of 2014, we began to manage our business according to two product segments because many of our Acute Care and Non-Acute Care customers were converging to provide services across the continuum of care. We modified our segment reporting structure to match our operating structure based on how our CODM views the business and allocates resources. The two operating segments, which are the same as our reporting segments, are as follows:

Automation and Analytics

The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. Our Automation and Analytics products are designed to enable our customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, our systems can be tailored to specific customer needs.

Medication Adherence

The Medication Adherence segment includes primarily the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. These products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name of MTS, Surgichem, and under the Omnicell brand, and dispensing systems sold under the Omnicell brand. MTS products consist of proprietary medication packaging systems and related products for use by institutional pharmacies servicing long-term care, and correctional facilities or retail pharmacies serving patients in their local communities.

The historical information presented has been retrospectively adjusted to reflect the new segment reporting. Our CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations. Except for goodwill, as discussed in Note 8, our assets are not discretely identified or allocated by segment.

The following table summarizes the financial performance of our reporting segments:

	Year Ended
	December 31, 2014						December 31, 2013						December 31, 2012
	Automation and Analytics		Medication Adherence (1)		Total		Automation and Analytics		Medication Adherence		Total		Automation and Analytics		Medication Adherence (2)		Total
	(In thousands)
Revenues	$	354,095	$	86,805	$	440,900	$	302,917	$	77,668	$	380,585	$	260,160	$	53,867	$	314,027
Cost of revenues	151,327		55,713		207,040		129,314		47,872		177,186		111,599		31,840		143,439
Gross profit	202,768		31,092		233,860		173,603		29,796		203,399		148,561		22,027		170,588
Operating expenses	155,156		29,121		184,277		140,087		28,013		168,100		127,467		15,995		143,462
Income from operations	$	47,612	$	1,971	$	49,583	$	33,516	$	1,783	$	35,299	$	21,094	$	6,032	$	27,126

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⁽¹⁾  Includes Surgichem results as of August 2014.

⁽²⁾  Includes MTS results as of May 2012.

Geographical Information

	Year Ended
	December 31, 2014		December 31, 2013		December 31, 2012
	(In thousands)
United States	$	394,234	$	334,412	$	287,716
Foreign countries (1)	46,666		46,173		26,311
Total revenues	$	440,900	$	380,585	$	314,027

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⁽¹⁾  No individual country represented more than 10% of the respective totals.

Significant customers

There were no significant customers that accounted for more than 10% of our total revenues in 2014, 2013 and 2012.