SEGMENT AND GEOGRAPHIC INFORMATION

In the first quarter of 2015, the Company began to disclose three global reportable segments as a result of changes in how the Company internally manages and reports the results of its businesses to its chief operating decision maker. On July 1, 2015, the Company completed the separation of its spine business, which was a reportable segment. See Note 3 - Discontinued Operations for additional information. Following the separation, the Company is disclosing two reportable segments.

In October 2017, as part of our branding strategy, the Company leveraged the globally recognized Codman name by rebranding the Specialty Surgical Solutions segment to Codman Specialty Surgical.

The two reportable segments and their activities are described below:

•

The Codman Specialty Surgical segment includes (i) the Neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment and (ii) the precision tools and instruments business, which sells more than 60,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, and dental, podiatry, and veterinary offices.


•	The Orthopedics and Tissue Technologies segment includes such offerings as skin and wound repair, bone and joint fixation implants in the upper and lower extremities, bone grafts and nerve and tendon repair.

The Corporate and other category includes (i) various legal, finance, information systems, executive, and human resource functions, (ii) brand management, and (iii) share-based compensation costs. Prior to the realignment, costs related to procurement, manufacturing operations and logistics for the Company's entire organization were not allocated to operating segments. In connection with the realignment, a portion of these costs have now been incorporated into the disclosed operating segments.

The operating results of the various reportable segments as presented are not comparable to one another because (i) certain operating segments are more dependent than others on corporate functions for unallocated general and administrative and/or operational manufacturing functions, and (ii) the Company does not allocate certain manufacturing costs and general and administrative costs to the operating segment results. Net sales and profit by reportable segment for the years ended December 31, 2017, 2016 and 2015 are as follows:



	Years Ended December 31,
	2017			2016			2015
	(In thousands)
Segment Net Sales
Codman Specialty Surgical	$	720,301		$	632,524		$	586,918
Orthopedics and Tissue Technologies	467,935			359,551			295,816
Total revenues	$	1,188,236		$	992,075		$	882,734
Segment Profit
Codman Specialty Surgical	$	292,971		$	256,629		$	242,479
Orthopedics and Tissue Technologies	129,697			103,852			87,844
Segment profit	422,668			360,481			330,323
Amortization	(20,370)			(13,862)			(9,953)
Corporate and other	(357,494		)	(231,279		)	(240,783		)
Operating income	$	44,804		$	115,340		$	79,587

The Company does not allocate any assets to the reportable segments, and, therefore, no asset information is reported to the chief operating decision maker and disclosed in the financial information for each segment.

The Company attributes revenue to geographic areas based on the location of the customer. There are certain revenues managed by the various U.S. segments above that are generated from non-U.S. customers and therefore included in Europe and the Rest of World revenues below.

Total revenue, net and long-lived assets (tangible) by major geographic area are summarized below:



	United States*		Europe		Rest of the World		Consolidated
	(In thousands)
Total revenue, net:
2017	$	894,260	$	150,147	$	143,829	$	1,188,236
2016	765,608		120,588		105,879		992,075
2015	680,824		103,057		98,853		882,734
Total long-lived assets:
2017	$	247,154	$	30,942	$	7,233	$	285,329
2016	213,898		18,970		1,235		234,103

* Includes long-lived assets in Puerto Rico.