Business segment information

9 Months Ended

Sep. 27, 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 nine months ended September 27, 2015 and September 28, 2014:

	Three Months Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
	(Dollars in thousands)
Revenue
Vascular North America	$	82,675	$	76,662	$	244,606	$	228,724
Anesthesia North America	47,628		47,203		138,656		136,185
Surgical North America	39,591		36,127		118,170		109,327
EMEA	120,854		141,146		379,268		446,061
Asia	61,935		62,035		172,506		174,176
OEM	38,959		39,174		111,592		108,966
All other	52,072		54,826		160,391		160,385
Consolidated net revenues	$	443,714	$	457,173	$	1,325,189	$	1,363,824

	Three Months Ended						Nine Months Ended
	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
	(Dollars in thousands)
Operating profit
Vascular North America	$	18,086		$	15,302		$	50,891		$	41,011
Anesthesia North America	15,178			11,966			36,572			27,330
Surgical North America	12,814			12,394			39,456			37,308
EMEA	19,656			28,810			65,334			85,771
Asia	15,715			14,785			42,812			44,718
OEM	8,865			9,651			25,274			24,551
All other	5,551			6,464			15,499			16,874
Total segment operating profit (1)	95,865			99,372			275,838			277,563
Unallocated expenses (2)	(19,315		)	(17,437		)	(56,694		)	(61,856		)
Income from continuing operations before interest, extinguishment of debt and taxes	$	76,550		$	81,935		$	219,144		$	215,707

(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, restructuring charges and gain on sale of assets.

	Three Months Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
	(Dollars in thousands)
Depreciation and amortization
Vascular North America	$	9,317	$	8,823	$	27,730	$	26,755
Anesthesia North America	1,992		2,889		5,186		9,244
Surgical North America	2,867		909		7,693		4,944
EMEA	7,848		9,688		24,088		28,298
Asia	2,870		2,003		8,278		6,146
OEM	1,727		1,651		5,098		4,715
All other	4,722		6,476		13,902		16,152
Consolidated depreciation and amortization	$	31,343	$	32,439	$	91,975	$	96,254

Geographic data

The following tables provide total net revenues for the three and nine months ended September 27, 2015 and September 28, 2014 and total net property, plant and equipment by geographic region as of September 27, 2015 and December 31, 2014:

	Three Months Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
	(Dollars in thousands)
Net revenue (based on selling location)
United States	$	240,558	$	231,278	$	710,282	$	676,088
Other Americas	12,961		14,440		41,524		44,399
Europe	134,939		157,797		419,314		500,763
All other	55,256		53,658		154,069		142,574
	$	443,714	$	457,173	$	1,325,189	$	1,363,824

	September 27, 2015		December 31, 2014
	(Dollars in thousands)
Net property, plant and equipment
United States	$	178,212	$	174,893
Malaysia	33,096		36,427
Czech Republic	33,051		35,655
All other	68,885		70,460
	$	313,244	$	317,435