Segment and Geographic Reporting (Notes)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Reporting

SEGMENT AND GEOGRAPHIC REPORTING

The Company operates in one distinct line of business consisting of developing, manufacturing, marketing and distributing disposable products and a proprietary excimer laser system for the treatment of certain peripheral and coronary vascular conditions.

Within this line of business, the Company has identified two operating segments, which were identified on a geographic basis: (1) U.S. Medical and (2) International Medical. U.S. Medical and International Medical offer the same products and services but operate in different geographic regions, have different distribution networks and different regulatory environments. Within U.S. Medical, the Company aggregates its two product lines, Vascular Intervention and Lead Management, based on their similar economic, operational and regulatory characteristics.

Additional information regarding each operating segment is discussed below.

(a) U.S. Medical

Products offered by this segment include single-use medical devices used in minimally invasive procedures within the cardiovascular system, including fiber-optic devices and non-fiber-optic products (disposables), an excimer laser system (equipment), and the service of the excimer laser system (service). The Company is subject to product approvals from the FDA. At December 31, 2014, FDA-approved products were used in multiple vascular procedures, including peripheral and coronary atherectomy, aspiration and thrombectomy and the removal of cardiac lead wires from patients with pacemakers and cardiac defibrillators. This segment’s customers are primarily located in the United States and Canada.

U.S. Medical also includes the corporate headquarters of the Company. All manufacturing, research and development as well as corporate administrative functions are performed within this reportable segment. As of December 31, 2014, 2013 and 2012, a portion of research, development and other technology expenses and general and administrative expenses incurred in the U.S. has been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment.

Manufacturing activities are performed entirely within the U.S. Medical segment. Revenue associated with intersegment product transfers to International Medical was $8.1 million, $7.6 million and $7.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Revenue is based upon transfer prices, which provide for intersegment profit that is eliminated upon consolidation.

(b) International Medical

The International Medical segment headquarters is located in the Netherlands and serves Europe as well as the Middle East, Latin America (including Puerto Rico), Japan and the Pacific Rim. Products offered by this segment are substantially the same as those offered by U.S. Medical.  The International Medical segment is engaged primarily in distribution activities, with no manufacturing or product development functions. Certain U.S. incurred research, development and other technology expenses and general and administrative expenses have been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment.

Summary financial information relating to reportable segment operations is shown below. Intersegment transfers as well as intercompany assets and liabilities are excluded from the information provided (in thousands):

	For the Year Ended December 31,
	2014		2013		2012
Revenue:
U.S. Medical:
Disposable products	$	155,107	$	114,976	$	103,218
Service and other, net of allowance for sales returns	9,334		9,833		9,081
Equipment	2,958		5,317		5,137
Subtotal	167,399		130,126		117,436
International Medical:
Disposable products	29,703		23,143		19,304
Service and other, net of allowance for sales returns	2,156		1,579		1,358
Equipment	5,656		3,963		2,187
Subtotal	37,515		28,685		22,849
Total revenue	$	204,914	$	158,811	$	140,285

	U.S. Medical			International Medical		Total
2014
Interest income	$	44		$	2	$	46
Interest expense	4,098			10		4,108
Depreciation and amortization expense	15,205			1,608		16,813
Income tax (benefit) expense	(887		)	565		(322		)
Segment operating (loss) income	(39,267		)	2,317		(36,950		)
Segment net (loss) income	(42,628		)	1,727		(40,901		)
Capital expenditures	6,532			190		6,722
Total assets	$	432,151		$	34,799	$	466,950

	U.S. Medical			International Medical		Total
2013
Interest income	$	61		$	—	$	61
Interest expense	58			—		58
Depreciation and amortization expense	9,217			1,393		10,610
Income tax expense	402			378		780
Segment operating (loss) income	(1,276		)	1,670		394
Segment net (loss) income	(1,666		)	1,296		(370		)
Capital expenditures	4,406			214		4,620
Total assets	$	198,639		$	18,518	$	217,157

	U.S. Medical		International Medical		Total
2012
Interest income	$	70	$	1	$	71
Interest expense	63		—		63
Depreciation and amortization expense	8,705		1,178		9,883
Income tax expense	414		320		734
Segment operating income	1,037		1,910		2,947
Segment net income	656		1,570		2,226
Capital expenditures	3,063		16		3,079
Total assets	$	95,181	$	15,588	$	110,769

In 2014, 2013 and 2012, no individual customer represented 10% or more of consolidated revenue. There were no individual countries, other than the United States, that represented at least 10% of consolidated revenue in 2014, 2013 or 2012. Long-lived assets, other than financial instruments and deferred tax assets, located in foreign countries are concentrated in Europe, and totaled $26.6 million and $11.9 million as of December 31, 2014 and 2013, respectively.

Revenue by Product Line

	For the Year Ended December 31,
(in thousands)	2014		2013		2012
Revenue
Disposable products revenue:
Vascular intervention	$	118,148	$	75,601	$	67,336
Lead management	66,662		62,518		55,186
Total disposable products revenue	184,810		138,119		122,522
Service and other, net of allowance for sales returns	11,490		11,412		10,439
Equipment	8,614		9,280		7,324
Total revenue	$	204,914	$	158,811	$	140,285