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Segment Information
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment and Geographical Information
Segment Information
In the first quarter of 2015, the Company modified its segment presentation to reflect the changes in how its Chief Operating Decision Maker (“CODM”) reviews the segments and the overall business. With the increase in completed acquisitions in the last two years, the Company changed how the financial information was presented for CODM review to exclude general corporate-level costs that are not specific to either of the reporting segments when evaluating the operating results of each segment. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses.
The Company's CODM allocates resources and evaluates the performance of its segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level. The Company enhanced its segment reporting structure to match its operating structure based on how its CODM views the business and allocates resources, beginning in the first quarter of 2015. The Company's CODM is its Chief Executive Officer. The historical information presented has been retrospectively adjusted to reflect the modified segment reporting and conform to the current period presentation.
The two operating segments, which are the same as the Company's two reportable 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. The Company's Automation and Analytics products are designed to enable its 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, the Company's systems can be tailored to specific customer needs. The acquired companies Mach4 and Avantec are included in the Automation and Analytics segment.
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 MTS Medication Technologies ("MTS"), Surgichem Limited ("Surgichem"), and under the Omnicell and SureMed brands. 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.
The following table summarizes the financial performance of the Company's reporting segments:
 
Year Ended
 
December 31, 2015
 
December 31, 2014
 
December 31, 2013
 
Automation and
Analytics (1)
 
Medication
Adherence
(2)
 
Total
 
Automation and
Analytics
 
Medication
Adherence (2)
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
(In thousands)
Revenues
$
390,321

 
$
94,238

 
$
484,559

 
$
354,095

 
$
86,805

 
$
440,900

 
$
302,917

 
$
77,668

 
$
380,585

Cost of revenues
171,943

 
64,686

 
236,629

 
151,327

 
55,713

 
207,040

 
129,314

 
47,872

 
177,186

Gross profit
218,378

 
29,552

 
247,930

 
202,768

 
31,092

 
233,860

 
173,603

 
29,796

 
203,399

Operating expenses
114,084

 
24,258

 
138,342

 
105,929

 
20,586

 
126,515

 
140,087

 
14,905

 
154,992

Income from operations
$
104,294

 
$
5,294

 
109,588

 
$
96,839

 
$
10,506

 
107,345

 
$
33,516

 
$
14,891

 
48,407

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate costs
 
 
 
 
60,956

 
 
 
 
 
57,762

 
 
 
 
 
13,108

Income from operations
 
 
 
 
$
48,632

 
 
 
 
 
$
49,583

 
 
 
 
 
$
35,299

_________________________________________________
(1) 
Includes Avantec and Mach4 results as of April 2015, the acquisition date.
(2) 
Includes Surgichem results as of August 2014, the acquisition date.

Significant customers
There were no significant customers that accounted for more than 10% of the Company's total revenues in 2015, 2014 and 2013.
Geographical Information
Revenues
 
Year Ended
 
December 31,
2015
 
December 31,
2014
 
December 31,
2013
 
(In thousands)
United States
$
403,375

 
$
394,234

 
$
334,412

Rest of world (1)
81,184

 
46,666

 
46,173

Total revenues
$
484,559

 
$
440,900

 
$
380,585

(1)    No individual country represented more than 10% of the respective totals.
  Property and equipment, net
 
Year Ended
 
December 31,
2015
 
December 31,
2014
 
December 31,
2013
 
(In thousands)
United States
$
29,506

 
$
35,335

 
$
35,254

Rest of world (1)
2,803

 
843

 

Total property and equipment, net
$
32,309

 
$
36,178

 
$
35,254

_________________________________________________
(1)    No individual country represented more than 10% of the respective totals.
Property and equipment, net is attributed to the geographic location in which it is located.