Business segments and other information

12 Months Ended

Dec. 31, 2016

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.

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 its presentation of segment information for its reportable operating segments, the Company also presents certain information pertaining to several immaterial operating segments in the “All other” category.

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, 2016, 2015 and 2014:

	Year Ended December 31,
	2016		2015		2014
	(Dollars in thousands)
Revenue
Vascular North America	$	350,486	$	334,938	$	311,163
Anesthesia North America	198,772		189,297		183,909
Surgical North America	172,223		161,230		150,121
EMEA	510,934		514,443		593,065
Asia	249,416		241,726		237,696
OEM	160,990		149,399		143,966
All other	225,206		218,657		219,912
Consolidated net revenues	$	1,868,027	$	1,809,690	$	1,839,832

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Operating Profit
Vascular North America	$	97,088		$	73,284		$	53,807
Anesthesia North America	55,544			48,311			34,566
Surgical North America	56,608			52,529			49,592
EMEA	84,392			92,326			114,650
Asia	75,770			67,887			62,152
OEM	33,641			33,162			30,635
All other	19,784			20,356			19,762
Total segment operating profit (1)	422,827			387,855			365,164
Unallocated expenses (2)	(103,374		)	(71,964		)	(80,302		)
Income from continuing operations before interest, loss on extinguishment of debt and taxes	$	319,453		$	315,891		$	284,862

(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 and other impairment charges and gain on sale of assets.

	Year Ended December 31,
	2016		2015		2014
	(Dollars in thousands)
Depreciation and Amortization
Vascular North America	$	36,260	$	37,159	$	35,701
Anesthesia North America	10,932		7,089		11,815
Surgical North America	10,459		12,289		6,316
EMEA	30,505		32,178		38,062
Asia	11,275		11,382		8,515
OEM	8,404		6,834		6,175
All other	20,511		18,403		20,446
Consolidated depreciation and amortization	$	128,346	$	125,334	$	127,030

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, 2016, 2015 and 2014:

	Year Ended December 31,
	2016		2015		2014
	(Dollars in thousands)
Net revenues (based on the Company's selling location):
United States	$	1,018,786	$	967,819	$	916,619
Other Americas	56,339		56,500		60,736
Europe	567,320		570,672		664,982
All other	225,582		214,699		197,495
	$	1,868,027	$	1,809,690	$	1,839,832
Net property, plant and equipment:
United States	$	167,167	$	178,895	$	174,893
Malaysia	31,415		33,777		36,427
Ireland	36,569		33,219		29,746
Czech Republic	30,843		32,305		35,655
All other	36,905		37,927		40,714
	$	302,899	$	316,123	$	317,435