Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. 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 Automation and Analytics products are designed to enable the Company's 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 financial results of Aesynt acquired in the first quarter of 2016 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 names 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 following table summarizes the financial performance of the Company's reportable segments, including a reconciliation of income from segment operations to income from total operations:

	Three months ended
	March 31, 2016						March 31, 2015
	Automation and Analytics		Medication Adherence		Total		Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	148,945	$	22,059	$	171,004	$	92,779	$	23,442	$	116,221
Cost of revenues	77,207		13,852		91,059		38,852		15,684		54,536
Gross profit	71,738		8,207		79,945		53,927		7,758		61,685
Operating expenses	52,205		5,611		57,816		28,589		6,341		34,930
Income from segment operations	$	19,533	$	2,596	$	22,129	$	25,338	$	1,417	$	26,755
Corporate costs					20,277						16,376
Income from operations					$	1,852					$	10,379

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Significant customers

There were no customers that accounted for more than 10% of our total revenues for the three months ended March 31, 2016 and March 31, 2015.

Geographical Information

Revenues

	Three months ended
	March 31, 2016		March 31, 2015
	(In thousands)
United States	$	143,493	$	97,823
Rest of world (1)	27,511		18,398
Total revenues	$	171,004	$	116,221

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

  Property and equipment, net

	March 31, 2016		December 31, 2015
	(In thousands)
United States	$	38,880	$	29,506
Rest of world (1)	3,328		2,803
Total property and equipment, net	$	42,208	$	32,309

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⁽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.