Segment information

3 Months Ended

Mar. 27, 2016

Segment Reporting [Abstract]

Segment information

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 months ended March 27, 2016 and March 29, 2015:

	Three Months Ended
	March 27, 2016		March 29, 2015
	(Dollars in thousands)
Revenue
Vascular North America	$	81,588	$	80,766
Anesthesia North America	45,957		45,449
Surgical North America	38,941		38,059
EMEA	122,095		129,282
Asia	49,156		48,529
OEM	33,977		34,715
All other	53,179		52,630
Consolidated net revenues	$	424,893	$	429,430

	Three Months Ended
	March 27, 2016			March 29, 2015
	(Dollars in thousands)
Operating profit
Vascular North America	$	19,656		$	15,750
Anesthesia North America	12,177			9,960
Surgical North America	13,256			12,327
EMEA	21,043			26,335
Asia	13,008			8,146
OEM	5,189			8,043
All other	5,743			3,093
Total segment operating profit (1)	90,072			83,654
Unallocated expenses (2)	(22,575		)	(18,046		)
Income from continuing operations before interest and taxes	$	67,497		$	65,608

(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.