Segment And Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Information [Abstract]

Segment Information

20.  Segment and Geographic Information

The Company has two reportable segments organized according to its products and services: Medical Devices and Preservation Services.  The Medical Devices segment includes external revenues from product sales of BioGlue, BioFoam, On-X products, CardioGenesis cardiac laser therapy, PerClot, PhotoFix, HeRO Graft through the second quarter of 2016, and ProCol through the date of the sale of the ProCol product line in the first quarter of 2016.  The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues.  There are no intersegment revenues.

The primary measure of segment performance, as viewed by the Company’s management, is segment gross margin, or net external revenues less cost of products and preservation services.  The Company does not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.

The following table summarizes revenues, cost of products and preservation services, and gross margins for the Company’s operating segments (in thousands):

	2016		2015		2014
Revenues:
Medical devices	$	113,992	$	83,081	$	81,883
Preservation services		66,388		62,817		62,758
Total revenues		180,380		145,898		144,641
Cost of products and preservation services:
Medical devices		28,033		18,663		17,167
Preservation services		33,448		36,516		36,183
Total cost of products and preservation services		61,481		55,179		53,350
Gross margin:
Medical devices		85,959		64,418		64,716
Preservation services		32,940		26,301		26,575
Total gross margin	$	118,899	$	90,719	$	91,291

Net revenues by product for the years ended December 31, 2016,  2015, and 2014 were as follows (in thousands):

	2016		2015		2014
Products:
BioGlue and BioFoam	$	63,461	$	59,332	$	62,091
On-X		34,232		--		--
CardioGenesis cardiac laser therapy		7,864		9,419		8,225
PerClot		4,021		4,083		4,289
PhotoFix		1,871		1,396		--
HeRO Graft		2,325		7,546		7,131
ProCol		218		1,305		147
Total products		113,992		83,081		81,883
Preservation services:
Cardiac tissue		29,697		28,059		29,437
Vascular tissue		36,691		34,758		33,321
Total preservation services		66,388		62,817		62,758
Total revenues	$	180,380	$	145,898	$	144,641

Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2016,  2015, and 2014 were as follows (in thousands):

	2016		2015		2014
U.S.	$	131,727	$	114,978	$	110,533
International		48,653		30,920		34,108
Total revenues	$	180,380	$	145,898	$	144,641

At December 31, 2016 and 2015 over 99% of the long‑lived assets of the Company were held in the U.S., where all of the Company’s manufacturing facilities and the corporate headquarters are located.  At December 31, 2016 and 2015 the Company’s $78.3 million and $11.4 million, respectively of goodwill was allocated entirely to its Medical Devices segment.