Business segment information

6 Months Ended

Jun. 28, 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.

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 divided into two operating segments, Anesthesia North America and Respiratory North America. Additionally, the businesses comprising the Company's former 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 the presentation of segment information, the Company will continue to present certain operating segments, which, effective April 1, 2015, include, among others, the Respiratory North America operating segment, in the “All other” category. All prior comparative periods presented in this report have been restated to reflect these changes.

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 and six months ended June 28, 2015 and June 29, 2014:

	Three Months Ended				Six Months Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(Dollars in thousands)
Revenue
Vascular North America	$	81,165	$	77,203	$	161,931	$	152,062
Anesthesia North America	45,579		45,730		91,028		88,982
Surgical North America	40,520		37,969		78,579		73,200
EMEA	129,132		154,670		258,414		304,915
Asia	62,042		62,539		110,571		112,141
OEM	37,918		36,610		72,633		69,792
All other	55,689		53,384		108,319		105,559
Consolidated net revenues	$	452,045	$	468,105	$	881,475	$	906,651

	Three Months Ended						Six Months Ended
	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
	(Dollars in thousands)
Operating profit
Vascular North America	$	17,055		$	13,544		$	32,805		$	25,709
Anesthesia North America	11,434			8,399			21,394			15,364
Surgical North America	14,315			14,366			26,642			24,914
EMEA	19,343			30,080			45,678			56,961
Asia	18,951			17,096			27,097			29,933
OEM	8,366			8,296			16,409			14,900
All other	6,855			4,693			9,948			10,410
Total segment operating profit (1)	96,319			96,474			179,973			178,191
Unallocated expenses (2)	(19,333		)	(21,722		)	(37,379		)	(44,419		)
Income from continuing operations before interest, extinguishment of debt and taxes	$	76,986		$	74,752		$	142,594		$	133,772

(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				Six Months Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(Dollars in thousands)
Depreciation and amortization
Vascular North America	$	9,265	$	9,061	$	18,413	$	17,932
Anesthesia North America	1,552		3,111		3,194		6,355
Surgical North America	2,348		1,666		4,826		4,035
EMEA	8,342		9,673		16,240		18,610
Asia	3,010		2,305		5,408		4,143
OEM	1,704		1,608		3,371		3,064
All other	4,561		4,978		9,180		9,676
Consolidated depreciation and amortization	$	30,782	$	32,402	$	60,632	$	63,815

Geographic data

The following table provides total net revenues for the three months ended June 28, 2015 and June 29, 2014 and total net property, plant and equipment by geographic region as of June 28, 2015 and December 31, 2014:

	Three Months Ended				Six Months Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(Dollars in thousands)
Net revenue (based on selling location)
United States	$	238,518	$	228,349	$	469,724	$	444,810
Other Americas	15,122		15,187		28,563		29,959
Europe	143,692		174,193		284,375		342,967
All other	54,713		50,376		98,813		88,915
	$	452,045	$	468,105	$	881,475	$	906,651

	June 28, 2015		December 31, 2014
	(Dollars in thousands)
Net property, plant and equipment
United States	$	177,772	$	174,893
Malaysia	35,594		36,427
Czech Republic	33,612		35,655
All other	68,558		70,460
	$	315,536	$	317,435