(15)	Segment Information and Concentrations of Risk

In the second quarter of 2012, we realigned our business into two operating groups to provide better focus on our two primary end users, providers and consumers. Our Merge Healthcare operating group, which represents about 87% of our total revenue in 2012, markets, sells and implements interoperability, imaging and clinical solutions to healthcare providers. Our Merge DNA (Data and Analytics) operating group represents the remaining revenue and focuses on the emergence of consumerism in healthcare, including health stations, clinical trials software and other consumer-focused solutions. As a result of this change, effective in the second quarter of 2012, we have two reportable operating segments. The information for 2011 and 2010 has been restated to conform to our two reportable operating segments.

We evaluate the performance of these operating groups based on their respective revenues and operating income, which exclude public company costs, certain corporate costs (amortization expense that is not specific to a segment), net interest expense and income taxes.

The following tables present operating group financial information for the periods indicated.

	Year ended December 31, 2012
	Healthcare		DNA			Total
Net sales:
Software and other	$	78,941	$	15,525		$	94,466
Professional Services		27,552		13,426			40,978
Maintenance and EDI		110,894		2,566			113,460
Total net sales	$	217,387	$	31,517		$	248,904
Expenses		192,408		33,315			225,723
Segment income (loss)	$	24,979	$	(1,798	)		23,181

Net corporate/other expenses (1)							47,910
Loss before income taxes						$	(24,729	)

	Year ended December 31, 2011
	Healthcare		DNA		Total
Net sales:
Software and other	$	76,947	$	4,001	$	80,948
Professional Services		23,437		18,468		41,905
Maintenance and EDI		109,562		13		109,575
Total net sales	$	209,946	$	22,482	$	232,428
Expenses		166,898		20,406		187,304
Segment income (loss)	$	43,048	$	2,076		45,124

Net corporate/other expenses (1)						46,990
Loss before income taxes					$	(1,866	)

	Year ended December 31, 2010
	Healthcare		DNA			Total
Net sales:
Software and other	$	42,379	$	41		$	42,420
Professional Services		13,183		9,992			23,175
Maintenance and EDI		74,737		-			74,737
Total net sales	$	130,299	$	10,033		$	140,332
Expenses		118,179		10,808			128,987
Segment income (loss)	$	12,120	$	(775	)		11,345

Net corporate/other expenses (1)							36,507
Loss before income taxes						$	(25,162	)

(1)	Net corporate/other expenses include public company costs, corporate administration expenses, amortization expense which is not attributable to business segments, acquisition-related expenses and net interest expense.

	Healthcare		DNA		Corporate/ Other			Consolidated
Depreciation and amortization
Year ended December 31, 2012	$	16,049	$	4,187	$	59		$	20,295

Restructuring and Other One Time Charges
Year ended December 31, 2012	$	333	$	497	$	-		$	830

Assets as of December 31, 2012	$	412,841	$	33,207	$	(9,195	)	$	436,853

	Healthcare		DNA		Corporate/ Other		Consolidated
Depreciation and amortization
Year ended December 31, 2011	$	19,311	$	2,165	$	732	$	22,208

Restructuring and Other One Time Charges
Year ended December 31, 2011	$	1,216	$	-	$	-	$	1,216

Assets as of December 31, 2011	$	354,442	$	47,722	$	48,223	$	450,387

	Healthcare		DNA		Corporate/ Other		Consolidated
Depreciation and amortization
Year ended December 31, 2010	$	15,702	$	1,820	$	290	$	17,812

Restructuring and Other One Time Charges
Year ended December 31, 2010	$	4,578	$	10	$	418	$	5,006

Assets as of December 31, 2010	$	326,037	$	29,764	$	40,844	$	396,645

Foreign sales account for approximately 6%, 9%, and 10% of our net sales in 2012, 2011, and 2010, respectively, and sales in foreign currency represented approximately 3%, 2%, and 1%, respectively, of our net sales in 2012, 2011 and 2010.

The following tables present certain geographic information, based on location of customer:

	Net Sales
	Years Ended December 31,
	2012		2011		2010
United States of America	$	232,848	$	211,907	$	125,974
Europe		8,687		8,767		7,730
Japan		2,190		5,312		2,853
Korea		1,018		1,449		718
Canada		1,707		1,598		491
Other		2,454		3,395		2,566
Total Net Sales	$	248,904	$	232,428	$	140,332

	Long Lived Assets
	December 31, 2012		December 31, 2011		December 31, 2010
United States of America		4,316		3,866		5,105
Canada		569		520		606
Europe		79		3		56
Other		-		2		5
Total	$	4,964	$	4,391	$	5,772