Segment Reporting and Foreign Operations

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting and Foreign Operations

SEGMENT REPORTING AND FOREIGN OPERATIONS

We report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of cardiology and radiology medical device products which assist in diagnosing and treating coronary artery disease, peripheral vascular disease and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management ("CRM"), electrophysiology ("EP"), and interventional oncology and spine devices. Our endoscopy segment consists of gastroenterology and pulmonology medical device products which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. We evaluate the performance of our operating segments based on operating income (loss). Listed below are the sales by business segment for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	% Change	2016		% Change	2015		% Change	2014
Cardiovascular
Stand-alone devices	25%	$	193,517	8%	$	155,414	15%	$	143,712
Custom kits and procedure trays	3%	119,392		5%	116,368		7%	111,076
Inflation devices	1%	73,919		1%	73,373		10%	72,538
Catheters	15%	110,939		11%	96,833		17%	87,550
Embolization devices	2%	46,035		3%	45,025		31%	43,855
CRM/EP	8%	36,446		3%	33,902		17%	32,975
Total	11%	580,248		6%	520,915		14%	491,706
Endoscopy
Endoscopy devices	11%	23,590		18%	21,234		6%	17,983
Total	11%	$	603,838	6%	$	542,149	14%	$	509,689

During the years ended December 31, 2016, 2015 and 2014, we had foreign sales of approximately $233.5 million, $214.0 million and $198.3 million, respectively, or approximately 39%, 39% and 39%, respectively, of net sales, primarily in China, Japan, Germany, France, the United Kingdom and Russia. China represents our most significant international sales market with sales of approximately $59.9 million, $50.7 million, and $40.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Foreign sales are attributed based on location of the customer receiving the product.

Our long-lived assets by geographic area at December 31, 2016, 2015 and 2014, consisted of the following (in thousands):

	2016		2015		2014
United States	$	194,715	$	186,389	$	177,627
Ireland	47,337		48,896		49,708
Other foreign countries	34,521		32,493		16,836
Total	$	276,573	$	267,778	$	244,171

Financial information relating to our reportable operating segments and reconciliations to the consolidated totals for the years ended December 31, 2016, 2015 and 2014, are as follows (in thousands):

	2016			2015			2014
Net Sales
Cardiovascular	$	580,248		$	520,915		$	491,706
Endoscopy	23,590			21,234			17,983
Total net sales	603,838			542,149			509,689
Operating expenses
Cardiovascular	218,659			187,492			175,152
Endoscopy	11,490			10,746			9,904
Total operating expenses	230,149			198,238			185,056
Operating income (loss)
Cardiovascular	30,120			34,052			38,601
Endoscopy	4,756			3,491			1,565
Total operating income	34,876			37,543			40,166
Total other expense - net	(9,490		)	(6,343		)	(8,594		)
Income tax expense	5,265			7,398			8,598
Net income	$	20,121		$	23,802		$	22,974

Total assets by business segment at December 31, 2016, 2015 and 2014, consisted of the following (in thousands):

	2016		2015		2014
Cardiovascular	$	932,927	$	767,952	$	734,940
Endoscopy	9,876		10,776		12,225
Total	$	942,803	$	778,728	$	747,165

Total depreciation and amortization by business segment for the years ended December 31, 2016, 2015, and 2014 consisted of the following (in thousands):

	2016		2015		2014
Cardiovascular	$	42,806	$	36,474	$	34,975
Endoscopy	949		951		954
Total	$	43,755	$	37,425	$	35,929

Total capital expenditures for property and equipment by business segment for the years ended December 31, 2016, 2015 and 2014 consisted of the following (in thousands):

	2016		2015		2014
Cardiovascular	$	32,613	$	50,927	$	33,660
Endoscopy	224		32		521
Total	$	32,837	$	50,959	$	34,181