Business segments and other information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business segments and other information

Business segments and other 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 because they are not material. 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 years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
	2015		2014		2013
	(Dollars in thousands)
Revenue
Vascular North America	$	334,938	$	311,163	$	272,270
Anesthesia North America	189,297		183,909		155,844
Surgical North America	161,230		150,121		146,058
EMEA	514,443		593,065		557,427
Asia	241,726		237,696		207,207
OEM	149,399		143,966		131,173
All other	218,657		219,912		226,292
Consolidated net revenues	$	1,809,690	$	1,839,832	$	1,696,271

	Year Ended December 31,
	2015			2014			2013
	(Dollars in thousands)
Operating Profit
Vascular North America	$	73,284		$	53,807		$	28,809
Anesthesia North America	48,311			34,566			19,525
Surgical North America	52,529			49,592			50,334
EMEA	92,326			114,650			87,902
Asia	67,887			62,152			63,822
OEM	33,162			30,635			27,328
All other	20,356			19,762			24,565
Total segment operating profit (1)	387,855			365,164			302,285
Unallocated expenses (2)	(71,964		)	(80,302		)	(69,024		)
Income from continuing operations before interest, loss on extinguishment of debt and taxes	$	315,891		$	284,862		$	233,261

(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.

	Year Ended December 31,
	2015		2014		2013
	(Dollars in thousands)
Depreciation and Amortization
Vascular North America	$	37,159	$	35,701	$	32,644
Anesthesia North America	7,089		11,815		10,339
Surgical North America	12,289		6,316		10,549
EMEA	32,178		38,062		29,947
Asia	11,382		8,515		4,960
OEM	6,834		6,175		4,876
All other	18,403		20,446		14,620
Consolidated depreciation and amortization	$	125,334	$	127,030	$	107,935

Geographic data

The following tables provide total net revenues and total net property, plant and equipment by geographic region for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
	2015		2014		2013
	(Dollars in thousands)
Net revenues (based on the Company's selling location):
United States	$	967,819	$	916,619	$	844,884
Other Americas	56,500		60,736		57,098
Europe	570,672		664,982		568,559
All other	214,699		197,495		225,730
	$	1,809,690	$	1,839,832	$	1,696,271
Net property, plant and equipment:
United States	$	178,895	$	174,893	$	203,985
Malaysia	33,777		36,427		29,313
Ireland	33,219		29,746		15,927
Czech Republic	32,305		35,655		41,607
All other	37,927		40,714		35,068
	$	316,123	$	317,435	$	325,900