Business segment information

3 Months Ended

Mar. 29, 2015

Segment Reporting [Abstract]

Business segment information

Business segment information

An operating segment is a component of the Company (a) that engages in business activities from which it may earn revenues and incur expenses, (b) whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance, and (c) for which discrete financial information is available. The Company does not evaluate its operating segments using discrete asset information.

The Company’s reportable segments, other than the Original Equipment Manufacturer and Development Services ("OEM") segment, design, manufacture and distribute medical devices primarily used in critical care, surgical applications and cardiac care and generally serve two end markets: hospitals and healthcare providers, and home health. The products of these segments are most widely used in the acute care setting for a range of diagnostic and therapeutic procedures and in general and specialty surgical applications. The Company’s OEM segment designs, manufactures and supplies devices and instruments for other medical device manufacturers.

The following tables present the Company’s segment results for the three months ended March 29, 2015 and March 30, 2014:

	Three Months Ended
	March 29, 2015		March 30, 2014
	(Dollars in thousands)
Revenue
Vascular North America	$	67,913	$	62,506
Anesthesia/Respiratory North America	55,390		54,714
Surgical North America	38,059		35,231
EMEA	129,282		150,245
Asia	48,529		49,602
OEM	34,715		33,182
All other	55,542		53,066
Consolidated net revenues	$	429,430	$	438,546

	Three Months Ended
	March 29, 2015			March 30, 2014
	(Dollars in thousands)
Operating profit
Vascular North America	$	12,702		$	9,392
Anesthesia/Respiratory North America	7,752			5,687
Surgical North America	12,327			10,548
EMEA	26,335			26,881
Asia	8,146			12,837
OEM	8,043			6,604
All other	8,349			9,768
Total segment operating profit (1)	83,654			81,717
Unallocated expenses (2)	(18,046		)	(22,697		)
Income from continuing operations before interest and taxes	$	65,608		$	59,020

(1) Segment operating profit includes segment net revenues from external customers reduced by its standard cost of goods sold, adjusted for fixed manufacturing cost absorption variances, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses. Corporate expenses are allocated among the segments in proportion to the respective amounts of one of several items (such as sales, numbers of employees, and amount of time spent), depending on the category of expense involved.

(2) Unallocated expenses primarily include manufacturing variances, with the exception of fixed manufacturing cost absorption variances, and restructuring and impairment charges.

	Three Months Ended
	March 29, 2015		March 30, 2014
	(Dollars in thousands)
Depreciation and amortization
Vascular North America	$	8,477	$	7,855
Anesthesia/Respiratory North America	3,195		4,428
Surgical North America	2,478		2,369
EMEA	7,898		8,937
Asia	2,398		1,838
OEM	1,667		1,456
All other	3,737		4,530
Consolidated depreciation and amortization	$	29,850	$	31,413

Effective April 1, 2015, the Company reorganized certain of its businesses to better leverage the Company’s resources. As a result, the Company realigned its operating segments. Specifically, the Company's Anesthesia/Respiratory North America operating segment was split into two operating segments, Anesthesia North America and Respiratory North America. Additionally, the businesses comprising the Company's Specialty operating segment (which was not a reportable segment and, therefore, was included in the "All other" category in the Company's presentation of segment information) were transferred to the Anesthesia North America, Vascular North America and Respiratory North America operating segments.

As a result of the operating segment changes described above, the Company has the following six reportable operating segments: Vascular North America, Anesthesia North America, Surgical North America, EMEA, Asia and OEM. In connection with its presentation of segment information, the Company will continue to present certain operating segments, including, among others, the Respiratory North America operating segment, in the “All other” category. In future filings, the Company will restate the operating segment results for prior comparative periods. Additionally, the segment realignment resulted in certain changes to the reporting unit structure and reallocation of goodwill to the new reporting units. Therefore, the Company will perform a goodwill impairment analysis of the affected reporting units during the second quarter 2015.     

Geographic data

The following table provides total net revenues for the three months ended March 29, 2015 and March 30, 2014 and total net property, plant and equipment by geographic region as of March 29, 2015 and December 31, 2014:

	Three Months Ended
	March 29, 2015		March 30, 2014
	(Dollars in thousands)
Net revenue (based on selling location)
United States	$	231,206	$	216,461
Other Americas	13,441		14,771
Europe	140,682		168,775
All other	44,101		38,539
	$	429,430	$	438,546

	March 29, 2015		December 31, 2014
	(Dollars in thousands)
Net property, plant and equipment
United States	$	177,431	$	174,893
Malaysia	36,173		36,427
Czech Republic	32,541		35,655
All other	63,961		70,460
	$	310,106	$	317,435