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Segment and Geographical Information
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment and Geographical Information
Segment and Geographical 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 InPharmics acquired in the second quarter of 2017 and Aesynt acquired in the first quarter of 2016 are included in the Automation and Analytics segment.
Medication Adherence
The Medication Adherence segment includes solutions to assist patients to remain adherent to their medication regimens. These solutions are comprised of a variety of tools and aids that may be directly used by a pharmacist or a healthcare provider in their direct care for a patient, or the patient themselves, and include software based systems and medication adherence packaging. Software solutions primarily operate on the Patient Management Access Portal (PMAP), a subscription based software system which provides an environment for patient engagement by clinicians. Services running on PMAP include Time My Meds medication synchronization, immunization management, and a number of tools used by clinicians to manage patient engagement workflows. Medication Adherence packaging is designed either for patient use in care environments where there is a caregiver present or for environments where the patient cares for him or herself and includes the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. The financial results of Ateb acquired in the fourth quarter of 2016 are included in the Medication Adherence segment.
The following table summarizes the financial performance of the Company's reporting segments:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
(In thousands)
Revenues
$
590,392

 
$
125,773

 
$
716,165

 
$
593,626

 
$
98,997

 
$
692,623

 
$
390,321

 
$
94,238

 
$
484,559

Cost of revenues
308,443

 
85,634

 
394,077

 
310,967

 
67,856

 
378,823

 
171,943

 
64,686

 
236,629

Gross profit
281,949

 
40,139

 
322,088

 
282,659

 
31,141

 
313,800

 
218,378

 
29,552

 
247,930

Operating expenses
193,700

 
41,735

 
235,435

 
198,511

 
24,843

 
223,354

 
114,084

 
24,258

 
138,342

Income from operations
$
88,249

 
$
(1,596
)
 
86,653

 
$
84,148

 
$
6,298

 
90,446

 
$
104,294

 
$
5,294

 
109,588

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate costs
 
 
 
 
80,899

 
 
 
 
 
83,965

 
 
 
 
 
60,956

Income from operations
 
 
 
 
$
5,754

 
 
 
 
 
$
6,481

 
 
 
 
 
$
48,632

_________________________________________________
Significant customers
The Company contracts with Group Purchasing Organizations (“GPOs”), each of which functions as a purchasing agent on behalf of member hospitals and other healthcare providers, as well as with government entities and agencies. Pursuant to the terms of GPO agreements, each member contracts directly with Omnicell and can purchase Company’s product at pre-negotiated contract terms and pricing. The account receivable balances are with individual members of the GPOs, and therefore no significant concentration of credit risk exists. During our fiscal year ended December 31, 2017, December 31, 2016 and December 31, 2015 sales to members of the ten largest GPOs accounted for approximately 51.2%, 51.2% and 65.2% of total consolidated revenue, respectively. There were no customers that accounted for more than 10% of the Company's total revenues or accounts receivable balance at and for the years ended December 31, 2017, December 31, 2016 and December 31, 2015.
Geographical Information
Revenues
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(In thousands)
United States
$
617,268

 
$
591,566

 
$
403,375

Rest of world (1)
98,897

 
101,057

 
81,184

Total revenues
$
716,165

 
$
692,623

 
$
484,559

___________________________________________
(1)No individual country represented more than 10% of the respective totals.
Property and equipment, net
Property and equipment, net is attributed to the geographic location in which it is located.
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(In thousands)
United States
$
34,899

 
$
36,497

 
$
29,506

Rest of world (1)
7,696

 
5,514

 
2,803

Total property and equipment, net
$
42,595

 
$
42,011

 
$
32,309

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