Segment and Geographical Information | Segment and Geographical 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. 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, which 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 tables summarize 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 September 30, 2017 September 30, 2016 Automation and Medication Total Automation and Medication Total (In thousands) Revenues $ 154,651 $ 32,131 $ 186,782 $ 152,437 $ 24,300 $ 176,737 Cost of revenues 79,740 22,189 101,929 77,828 17,401 95,229 Gross profit 74,911 9,942 84,853 74,609 6,899 81,508 Operating expenses 46,849 9,901 56,750 49,123 6,137 55,260 Income (loss) from segment operations $ 28,062 $ 41 $ 28,103 $ 25,486 $ 762 $ 26,248 Corporate costs 18,389 21,320 Income (loss) from operations $ 9,714 $ 4,928 Nine months ended September 30, 2017 September 30, 2016 Automation and Analytics Medication Adherence Total Automation and Analytics Medication Adherence Total (In thousands) Revenues $ 427,250 $ 90,971 $ 518,221 $ 450,043 $ 70,605 $ 520,648 Cost of revenues 229,218 61,983 291,201 233,401 47,777 281,178 Gross profit 198,032 28,988 227,020 216,642 22,828 239,470 Operating expenses 146,651 31,196 177,847 151,108 17,518 168,626 Income (loss) from segment operations $ 51,381 $ (2,208 ) $ 49,173 $ 65,534 $ 5,310 $ 70,844 Corporate costs 59,099 64,182 Income (loss) from operations $ (9,926 ) $ 6,662 Significant customers There were no customers that accounted for more than 10% of our total revenues for the three and nine months ended September 30, 2017 and 2016 . Also, there were no customers that accounted for more than 10% of our accounts receivable as of September 30, 2017 and December 31, 2016 . Geographical Information Revenues Three months ended September 30, September 30, (In thousands) United States $ 164,190 $ 155,989 Rest of world (1) 22,592 20,748 Total revenues $ 186,782 $ 176,737 Nine months ended September 30, September 30, (In thousands) United States $ 449,755 $ 445,470 Rest of world (1) 68,466 75,178 Total revenues $ 518,221 $ 520,648 _________________________________________________ (1) No individual country represented more than 10% of the respective totals. Property and equipment, net September 30, December 31, (In thousands) United States $ 33,620 $ 36,497 Rest of world (1) 6,599 5,514 Total property and equipment, net $ 40,219 $ 42,011 _________________________________________________ (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. |