Segment information

6 Months Ended

Jun. 26, 2016

Segment Reporting [Abstract]

Segment information

Note 13 — 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 has the following six reportable operating segments: Vascular North America, Anesthesia North America, Surgical North America, EMEA, Asia and OEM. 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.

Operating segments other than the reportable operating segments are collectively presented in the “All other” category within the tabular information set forth below.

The following tables present the Company’s segment results for the three and six months ended June 26, 2016 and June 28, 2015:

	Three Months Ended				Six Months Ended
	June 26, 2016		June 28, 2015		June 26, 2016		June 28, 2015
	(Dollars in thousands)				(Dollars in thousands)
Revenue
Vascular North America	$	88,111	$	81,165	$	169,699	$	161,931
Anesthesia North America	49,194		45,579		95,151		91,028
Surgical North America	43,136		40,520		82,077		78,579
EMEA	131,705		129,132		253,800		258,414
Asia	63,191		62,042		112,347		110,571
OEM	40,298		37,918		74,275		72,633
All other	57,918		55,689		111,097		108,319
Consolidated net revenues	$	473,553	$	452,045	$	898,446	$	881,475

	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
	(Dollars in thousands)						(Dollars in thousands)
Operating profit
Vascular North America	$	21,994		$	17,055		$	41,650		$	32,805
Anesthesia North America	15,050			11,434			27,227			21,394
Surgical North America	12,348			14,315			25,604			26,642
EMEA	23,944			19,343			44,987			45,678
Asia	21,751			18,951			34,759			27,097
OEM	9,215			8,366			14,404			16,409
All other	7,436			6,855			13,179			9,948
Total segment operating profit (1)	111,738			96,319			201,810			179,973
Unallocated expenses (2)	(13,297		)	(19,333		)	(35,872		)	(37,379		)
Income from continuing operations before interest and taxes	$	98,441		$	76,986		$	165,938		$	142,594

(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.