Segment and Geographic Information

6 Months Ended

12 Months Ended

Jun. 30, 2012

Dec. 31, 2011

Segment Reporting [Abstract]

Segment and Geographic Information

Segment Information

The Centaur Companies are engaged in the rental and sale of advanced wound care systems, regenerative medicine products and therapeutic support systems. The Centaur Companies have operations in more than 20 countries.

The Centaur Companies have three reportable operating segments which correspond to our three global business units: AHS, TSS and LifeCell. Our three global operating segments also represent our reporting units as defined by the Codification. In most countries where we operate, our product lines are marketed and serviced by the same infrastructure and, as such, we have allocated these costs to the various business units based on allocation methods including rental and sales events, headcount, revenue and other methods as deemed appropriate. We measure segment profit (loss) as operating earnings (loss), which is defined as income (loss) before interest and other income, interest expense, foreign currency gains and losses, and income taxes. All intercompany transactions are eliminated in computing revenue and operating earnings (loss).

Information on segments and a reconciliation of consolidated totals are as follows (dollars in thousands):

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
	Successor		Predecessor		Successor		Predecessor
Revenue:
AHS	$	330,318	$	356,940	$	656,506	$	696,504
TSS	56,944		65,523		115,434		133,150
LifeCell	107,797		96,330		214,142		189,344
Total revenue	$	495,059	$	518,793	$	986,082	$	1,018,998

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
	Successor			Predecessor			Successor			Predecessor
Operating earnings (loss):
AHS (1)	$	104,308		$	128,815		$	175,746		$	243,189
TSS (1)	(5,927		)	4,387			(21,453		)	8,619
LifeCell (1)	23,575			24,775			46,639			52,913
Non-allocated costs:
General headquarter expense	(9,081		)	(8,606		)	(14,027		)	(22,688		)
Equity-based compensation	(492		)	(8,234		)	(989		)	(15,879		)
Merger-related and other expenses (2)	(31,313		)	(3,644		)	(42,065		)	(5,238		)
Acquired intangible asset amortization (3)	(54,325		)	(8,856		)	(123,750		)	(17,712		)
Total non-allocated costs	(95,211		)	(29,340		)	(180,831		)	(61,517		)
Total operating earnings (loss)	$	26,745		$	128,637		$	20,101		$	243,204

________________________________

(1) The three months ended June 30, 2012 includes the allocation of depreciation expense and cost of sales associated with the preliminary purchase accounting adjustments related to the step up in value of rental medical equipment (“RME”) and inventory of $29.9 million, $7.7 million and $8.3 million, respectively, to our AHS, TSS and LifeCell operating segments. The six months ended June 30, 2012 includes the allocation of depreciation expense and cost of sales associated with the preliminary purchase accounting adjustments related to the step up in value of RME and inventory of $62.4 million, $23.0 million and $16.9 million, respectively, to our AHS, TSS and LifeCell operating segments. In addition, our AHS operating segment includes a $12.4 million impairment charge during the first quarter 2012 associated with certain production equipment at our AHS manufacturing plant.

(2) The three and six months ended ended June 30, 2012 includes expenses related to the Merger for seller transaction costs, management fees and restructuring-related expenses as well as business optimization expenses. In addition, the three and six months ended ended June 30, 2012 and 2011 includes expenses related to our global business transformation efforts.

(3) The three and six months ended ended June 30, 2011 includes amortization of acquired intangible assets related to our purchase of LifeCell in May 2008.

Segment and Geographic Information

The Centaur Companies are engaged in the rental and sale of advanced wound care systems, regenerative medicine products and therapeutic support systems. The Centaur Companies have operations in more than 20 countries.

The Centaur Companies have three reportable operating segments which correspond to our three global business units: AHS; TSS; and LifeCell. Our three global operating segments also represent our reporting units as defined by the Codification. In most countries where we operate, our product lines are marketed and serviced by the same infrastructure and, as such, we have allocated these costs to the various business units based on allocation methods including rental and sales events, headcount, revenue and other methods as deemed appropriate. We measure segment profit (loss) as operating earnings (loss), which is defined as income (loss) before interest and other income, interest expense, foreign currency gains and losses, and income taxes. All intercompany transactions are eliminated in computing revenue and operating earnings (loss).

Information on segments and a reconciliation of consolidated totals are as follows (dollars in thousands):

	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011			Year Ended December 31,
							2010			2009
	Successor			Predecessor			Predecessor			Predecessor
Revenue:
AHS	$	231,147		$	1,181,944		$	1,402,035		$	1,402,417
TSS	42,494			214,727			270,154			300,171
LifeCell	73,615			321,451			341,405			285,898
Total revenue	$	347,256		$	1,718,122		$	2,013,594		$	1,988,486
Operating earnings (loss):
AHS	$	72,830		$	440,383		$	463,252		$	444,296
TSS	899			8,764			9,561		(1)	36,387
LifeCell	13,029			89,178			93,948			80,251
Non-allocated costs:
General headquarter expense	(3,948		)	(46,837		)	(49,312		)	(43,153		)
Equity-based compensation (2)	(306		)	(81,354		)	(32,781		)	(32,506		)
Merger-related expenses (3)	(148,713		)	(46,619		)	—			—
LifeCell acquisition-related expenses (4)	—			(29,519		)	(38,293		)	(42,791		)
Total non-allocated costs	(152,967		)	(204,329		)	(120,386		)	(118,450		)
Total operating earnings (loss)	$	(66,209	)	$	333,996		$	446,375		$	442,484

_____________________________

(1) Includes $7.4 million of expenses associated with the TSS product portfolio rationalization recorded in the second quarter of 2010.

(2) Includes $55.0 million related to the acceleration of equity-based compensation expense due to immediate vesting upon the Merger.

(3) Represents expenses related to the Merger including buyer and seller transaction costs, management fees, restructuring-related expenses and amortization of acquired intangible assets.

(4) Includes amortization of acquired intangible assets and costs to retain key employees related to our purchase of LifeCell in May 2008.

	Period from November 4 through December 31, 2011			Period from January 1 through November 3, 2011			Year Ended December 31,
							2010			2009
	Successor			Predecessor			Predecessor			Predecessor
Depreciation and other amortization:
AHS	$	44,238		$	55,568		$	72,474		$	62,668
TSS	4,021			18,343			27,691			34,014
LifeCell	8,670			44,667			57,370			60,248
Other	(178		)	(892		)	(1,070		)	(1,070		)
	$	56,751		$	117,686		$	156,465		$	155,860

Significant non-cash expense other than depreciation and amortization expense includes the Merger-related periodic recognition of cost of sales associated with the application of preliminary purchase accounting adjustments to step up the value of inventory. For the period from November 4 through December 31, 2011, we recognized $2.1 million, $5.3 million and $0.4 million, respectively, in related cost of sales for our AHS, TSS and LifeCell business units.

AHS, TSS and LifeCell assets are primarily accounts receivable, inventories, goodwill, intangible assets and net property, plant and equipment generally identifiable by product. Other assets include assets not specifically identifiable to a product, such as cash, deferred income taxes, prepaid expenses, net debt issuance costs and other non-current assets. Information on segment assets are as follows (dollars in thousands):

	December 31,
	2011		2010		2009
	Successor		Predecessor		Predecessor
Total assets:
AHS	$	4,977,917	$	764,619	$	779,464
TSS	192,227		181,851		192,535
LifeCell	2,328,671		1,704,337		1,712,376
Other	422,564		425,192		354,190
	$	7,921,379	$	3,075,999	$	3,038,565

AHS, TSS and LifeCell gross capital expenditures primarily relate to manufactured rental assets, manufacturing equipment, and computer hardware and software identifiable by product. Other capital expenditures include those not specifically identifiable to a product, such as the purchase of land and the construction of our global headquarters building, leasehold improvements, and computer hardware and software. The following table contains information on gross capital expenditures (dollars in thousands):

	Period from November 4 through December 31, 2011		Period from January 1 through November 3, 2011		Year Ended December 31,
					2010		2009
	Successor		Predecessor		Predecessor		Predecessor
Gross capital expenditures:
AHS	$	10,080	$	5,842	$	10,212	$	17,140
TSS	6,614		7,905		10,994		15,047
LifeCell	7,047		10,832		10,099		9,113
Other	12,267		73,977		54,578		61,989
	$	36,008	$	98,556	$	85,883	$	103,289

Other selected geographic financial information is presented separately for the successor and predecessor periods. In the successor presentation, the Bailiwick of Guernsey represents the domestic location and in the predecessor presentation, the United States represents the domestic location. Revenues are attributed to countries based on the location of our entity providing the products or services. Information on the geographical location of select financial information is as follows (dollars in thousands):

	Period from November 4 through December 31, 2011
	Successor
Geographic location of revenue:
Domestic	$	—
United States	257,008
Other foreign	90,248
Total revenue	$	347,256

	Period from January 1 through November 3, 2011		Year Ended December 31,
			2010		2009
	Predecessor		Predecessor		Predecessor
Geographic location of revenue:
Domestic	$	1,266,532	$	1,503,451	$	1,471,956
Foreign	451,590		510,143		516,530
Total revenue	$	1,718,122	$	2,013,594	$	1,988,486

	December 31, 2011
	Successor
Geographic location of long-lived assets (1):
Domestic	$	—
United States	360,365
Other foreign	184,982
Total long-lived assets	$	545,347

_____________________________

(1) Long-lived assets exclude intangible assets.

	December 31,
	2010		2009
	Predecessor		Predecessor
Geographic location of long-lived assets (1):
Domestic	$	184,131	$	198,211
Foreign	86,932		97,844
Total long-lived assets	$	271,063	$	296,055

_____________________________

(1) Long-lived assets exclude intangible assets.