Segment information

Following the Company's acquisition of Vascular Solutions, the Company commenced an integration program under which it is combining the Vascular Solutions' business with some of its legacy businesses. As a result, effective during the fourth quarter 2017, the Company realigned its operating segments. The changes to the operating segments were also made to reflect the manner in which the Company’s chief operating decision maker assesses business performance and allocates resources. The Company now has the following seven reportable segments: Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Europe, Middle East and Africa ("EMEA"), Asia and Original Equipment and Development Services ("OEM"). In connection with the presentation of segment information, the Company will continue to present certain operating segments, which currently include the Interventional Urology North America, Respiratory North America and Latin America operating segments, in the “all other” category because separate information with regard to each of these operating segments is not material. All prior comparative periods presented have been restated to reflect these changes.

The following tables present the Company’s segment results for the three and nine months ended September 30, 2018 and October 1, 2017:



	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(Dollars in thousands)
Vascular North America	$	80,719	$	75,065	$	243,829	$	232,872
Interventional North America	66,726		60,719		191,878		159,002
Anesthesia North America	53,160		50,819		154,215		148,107
Surgical North America	42,545		40,804		123,930		131,464
EMEA	139,541		137,034		452,826		409,077
Asia	76,544		74,202		207,201		190,368
OEM	54,838		48,589		153,286		137,067
All other	95,599		47,471		279,603		143,240
Net revenues	$	609,672	$	534,703	$	1,806,768	$	1,551,197



	Three Months Ended						Nine Months Ended
	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
	(Dollars in thousands)
Vascular North America	$	24,287		$	17,803		$	73,585		$	54,565
Interventional North America	17,142			12,485			47,772			13,265
Anesthesia North America	16,811			15,084			48,860			48,444
Surgical North America	15,906			13,618			47,709			47,285
EMEA	21,916			24,198			80,221			69,102
Asia	20,834			20,427			54,948			50,252
OEM	15,049			12,256			37,617			31,714
All other	(5,587		)	7,290			(43,162		)	25,634
Total segment operating profit ⁽¹⁾	126,358			123,161			347,550			340,261
Unallocated expenses ⁽²⁾	(44,253		)	(12,807		)	(145,112		)	(58,886		)
Income from continuing operations before interest, loss on extinguishment of debt and taxes	$	82,105		$	110,354		$	202,438		$	281,375

(1)

Segment operating profit includes segment net revenues from external customers reduced by the segment's 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 net revenues, numbers of employees, and amount of time spent), depending on the category of expense involved.


(2)	Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances, restructuring charges and gain on sale of assets.

The following table provides total net revenues by geographic region (based on the Company's selling location) for the three and nine months ended September 30, 2018 and October 1, 2017:



	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
	(Dollars in thousands)
United States	$	365,271	$	306,763	$	1,066,095	$	903,201
Europe	160,498		148,808		500,697		434,223
Asia	60,414		59,169		170,458		156,074
All other	23,489		19,963		69,518		57,699
Net revenues	$	609,672	$	534,703	$	1,806,768	$	1,551,197