|6 Months Ended|
Jun. 30, 2017
|Segment Reporting [Abstract]|
Note 8 – Segment Reporting
As a result of the beginning of new geographical revenue activity in the United States in the second quarter of 2017, we are reporting the results of each of our two reportable segments beginning with the second quarter of 2017 in accordance with ASC 280, Segment Reporting. Each of the operating segments is separately managed by a senior executive who reports to our Chief Executive Officer, who is the chief operating decision maker. Discrete financial information is available for each of the segments, and the operating results of each of the operating segments are used for performance evaluation and resource allocation.
We manage two operating segments aligned with our geographic operating locations of Latin America and the United States. We also report certain corporate and other non-operating activities under the heading “Corporate and Other.” Corporate and Other primarily reflects corporate personnel and activities, research and development activities, incentive compensation programs and other costs.
We account for intersegment sales at prices that we generally establish by reference to similar transactions with unaffiliated customers. Reporting segments are measured based on gross margin, which is defined as revenues reduced by total cost of services. Cost of services exclude research and development expenses and depreciation and amortization expense.
Summarized financial information is shown in the following tables:
The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.
Reference 1: http://www.xbrl.org/2003/role/presentationRef