Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
9 Months Ended
Sep. 30, 2011
Segment Reporting [Abstract]  
Segment Reporting

6. Segment Reporting

Under Accounting Standards Codification No. 280, "Segment Reporting", or ASC 280, operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the entity's chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company has evaluated this Codification and has identified two reportable segments: the development and commercialization of drugs using CAPTISOL technology by the recently acquired CyDex Pharmaceuticals, Inc. and the biopharmaceutical company with a business model that is based upon the concept of developing or acquiring royalty revenue generating assets and coupling them to a lean corporate cost structure of Ligand Pharmaceuticals, Inc. We evaluate performance based on the operating profit (loss) of the respective business segments. The segment results may not represent actual results that would be expected if they were independent, stand-alone businesses. Segment information was as follows for the three and nine months ended September 30, 2011:

 

For the Three Months Ending September 30, 2011:    Ligand     CyDex      Total  
     (restated)            (restated)  

Net revenues from external customers

   $ 3,291      $ 2,450       $ 5,741   

Operating profit (loss)

     (3,381     132         (3,249

Depreciation and amortization expense

     134        609         743   

Income tax expense (benefit)

     22        —           22   

Assets

     88,750        34,408         123,158   
For the Nine Months Ending September 30, 2011:                    

Net revenues from external customers

   $ 8,718      $ 8,383       $ 17,101   

Operating profit (loss)

     (6,507     966         (5,541

Depreciation and amortization expense

     407        1,692         2,099   

Income tax expense (benefit)

     (13,427     —           (13,427

Assets

     88,750        34,408         123,158