Business Segments

6 Months Ended

Jun. 30, 2017

Note 9 — Business Segments

The Company organizes its operations into the API, DDS, DP and FC segments. The API segment provides pilot to commercial scale manufacturing of active pharmaceutical ingredients and intermediates. The DP segment provides pre-formulation, formulation and process development through commercial scale production of complex liquid-filled and lyophilized sterile injectable products and ophthalmic formulations. The DDS segment provides activities such as drug lead discovery, optimization, drug development and small and medium scale commercial manufacturing. The FC segment provides lab to commercial scale synthesis of reagents and diverse compounds. Corporate activities include sales and marketing and administrative functions, as well as research and development costs that have not been allocated to the operating segments.

The following table contains earnings data by operating segment, reconciled to totals included in the unaudited Condensed Consolidated Financial Statements:

					Income
			Recurring		(Loss)		Depreciation
	Contract		Royalty		from		and
	Revenue		Revenue		Operations		Amortization
For the three months ended June 30, 2017
API	$	100,448	$	1,580	$	(2,420)	$	11,853
DDS		30,865		-		9,568		1,957
DP		31,853		632		7,281		2,115
FC		7,554		-		1,301		708
Corporate		-		-		(17,286)		729
Total	$	170,720	$	2,212	$	(1,556)	$	17,362

					Income
			Recurring		(Loss)		Depreciation
	Contract		Royalty		from		and
	Revenue (a)		Revenue		Operations (b)		Amortization (b)
For the three months ended June 30, 2016
API	$	64,706	$	4,353	$	16,358	$	3,440
DDS		26,561		-		3,871		2,055
DP		25,190		-		3,445		1,864
Corporate		-		-		(17,208)		397
Total	$	116,457	$	4,353	$	6,466	$	7,756

					Income
			Recurring		(Loss)		Depreciation
	Contract		Royalty		from		and
	Revenue		Revenue		Operations		Amortization
For the six months ended June 30, 2017
API	$	203,810	$	4,345	$	10,149	$	23,440
DDS		60,033		-		14,043		3,920
DP		54,387		1,464		8,143		4,176
FC		12,715		-		1,296		1,260
Corporate		-		-		(33,104)		1,422
Total	$	330,945	$	5,809	$	527	$	34,218

					Income
			Recurring		(Loss)		Depreciation
	Contract		Royalty		from		and
	Revenue (a)		Revenue		Operations (b)		Amortization (b)
For the six months ended June 30, 2016
API	$	119,076	$	7,094	$	24,836	$	6,548
DDS		50,096		-		5,326		5,235
DP		50,123		-		3,774		3,685
Corporate		-		-		(31,623)		812
Total	$	219,295	$	7,094	$	2,313	$	16,280

(a)

A portion of the 2016 amounts were reclassified between API and DDS to better align business activities within the Company’s reporting segments.

(b)

A portion of the 2016 amounts were reclassified between Corporate, API, DDS and DP to better align business activities within the Company’s reporting segments.

The following table summarizes other information by segment as of June 30, 2017 and capital expenditures for the six-month period ended June 30, 2017:

	API		DDS		DP		FC		Corporate		Total
Long-lived assets	$	430,449	$	116,647	$	169,251	$	24,108	$	28,665	$	769,120
Goodwill included in total assets		109,225		52,595		76,882		-		-	$	238,702
Total assets		728,513		152,780		213,014		38,475		109,592	$	1,242,374
Investments in unconsolidated affiliates		-		-		-		-		956	$	956
Capital expenditures (six months ended June 30, 2017)		5,758		1,542		2,368		5		813	$	10,486

The following table summarizes other information by segment as of December 31, 2016 and capital expenditures for the six-month period ended June 30, 2016:

	API		DDS		DP		FC		Corporate		Total
Long-lived assets	$	425,207	$	117,174	$	165,781	$	23,958	$	29,116	$	761,236
Goodwill included in total assets		104,556		52,045		74,655		-		-		231,256
Total assets		706,838		172,408		209,689		38,444		82,269		1,209,648
Investments in unconsolidated affiliates		-		-		-		-		956		956
Capital expenditures (six months ended June 30, 2016)		13,707		4,718		4,054		-		2,487		24,966

ALBANY MOLECULAR RESEARCH INC 10-Q