XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Information
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
We periodically evaluate our application of accounting guidance for reportable segments and disclose information about reportable segments based on the way management organizes the enterprise for making operating decisions and assessing performance. We report our business under two segments: Global Solutions and Global Products. The Global Solutions segment includes our United States and European distribution, logistics and value-added services business. Global Products provides product-related solutions, including surgical and procedural kitting and sourcing. The Halyard S&IP business, acquired on April 30, 2018, is a part of Global Products.
We evaluate the performance of our segments based on their operating income excluding acquisition-related and exit and realignment charges, certain purchase price fair value adjustments, and other substantive items that, either as a result of their nature or size, would not be expected to occur as part of our normal business operations on a regular basis. Beginning in the second quarter of 2018, the Company is excluding acquisition-related intangible amortization from the measure of segment operating income. This change is consistent with management's internal measure of segment results. Prior periods have been recast on a consistent basis.
Segment assets exclude inter-segment account balances as we believe their inclusion would be misleading and not meaningful. We believe all inter-segment sales are at prices that approximate market.
The following tables present financial information by segment:
 
Three Months Ended   September 30,
 
Nine Months Ended   September 30,
 
2018
 
2017
 
2018
 
2017
Net revenue:
 
 
 
 
 
 
 
Segment net revenue
 
 
 
 
 
 
 
Global Solutions
$
2,243,782

 
$
2,290,804

 
$
6,875,077

 
$
6,806,126

Global Products
349,895

 
124,542

 
750,770

 
392,654

Total segment net revenue
2,593,677

 
2,415,346

 
7,625,847

 
7,198,780

Inter-segment revenue
 
 
 
 
 
 
 
Global Products
(128,800
)
 
(81,385
)
 
(330,120
)
 
(270,339
)
Total inter-segment revenue
(128,800
)
 
(81,385
)
 
(330,120
)
 
(270,339
)
Consolidated net revenue
$
2,464,877

 
$
2,333,961

 
$
7,295,727

 
$
6,928,441

 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
Global Solutions
$
24,150

 
$
37,556

 
$
84,742

 
$
107,636

Global Products
27,634

 
10,510

 
61,351

 
30,199

Inter-segment eliminations
(2,957
)
 
416

 
(3,032
)
 
(266
)
Goodwill and intangible asset impairment charges
—

 
—

 
(165,447
)
 
—

Acquisition-related intangible amortization
(10,366
)
 
(5,071
)
 
(26,147
)
 
(9,737
)
Acquisition-related and exit and realignment charges 
(7,727
)
 
(9,299
)
 
(47,416
)
 
(21,134
)
Other (1)
(9,377
)
 
(4,441
)
 
(30,527
)
 
(8,674
)
Consolidated operating income (loss)
$
21,357

 
$
29,671

 
$
(126,476
)
 
$
98,024

 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
Global Solutions
$
15,829

 
$
13,906

 
$
47,464

 
$
35,305

Global Products
13,953

 
1,947

 
26,132

 
5,755

Consolidated depreciation and amortization
$
29,782

 
$
15,853

 
$
73,596

 
$
41,060

 
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
 
Global Solutions
$
12,006

 
$
12,778

 
$
40,152

 
$
35,035

Global Products
5,245

 
718

 
7,153

 
2,754

Consolidated capital expenditures
$
17,251

 
$
13,496

 
$
47,305

 
$
37,789


 
September 30, 2018
 
December 31, 2017
Total assets:
 
 
 
Global Solutions
$
2,779,512

 
$
2,870,999

Global Products
1,127,879

 
400,772

Segment assets
3,907,391

 
3,271,771

Cash and cash equivalents
124,890

 
104,522

Consolidated total assets
$
4,032,281

 
$
3,376,293


(1) Software as a Service (SaaS) implementation costs associated with significant global IT platforms in connection with the redesign of our global information system strategy and incremental charge to cost of goods sold from purchase accounting impacts related to the sale of acquired inventory that was written up to fair value.

The following table presents net revenue by geographic area, which were attributed based on the location from which we ship products or provide services.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net revenue:
 
 
 
 
 
 
 
United States
$
2,200,196

 
$
2,214,175

 
$
6,694,761

 
$
6,577,373

Outside of the United States
264,681

 
119,786

 
600,966

 
351,068

Consolidated net revenue
$
2,464,877

 
$
2,333,961

 
$
7,295,727

 
$
6,928,441