Business segments and other information

12 Months Ended

Dec. 31, 2019

An operating segment is a component (a) that engages in business activities from which it may earn revenues and incur expenses, (b) whose operating results are regularly reviewed by the 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. We do not evaluate our operating segments using discrete asset information.

During 2019, our chief operating decision maker (our Chief Executive Officer) changed the manner in which he reviews financial information for purposes of assessing business performance and allocating resources by focusing on the geographic location of all non-OEM operations. As a result, we changed our segment presentation. Specifically, the Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Interventional Urology North America, Respiratory North America and Latin America operating segments were combined into a new Americas segment. We now have four reportable segments: Americas, EMEA (Europe, the Middle East and Africa), Asia (Asia Pacific) and OEM (Original Equipment Manufacturer and Development Services).

Our reportable segments, other than the OEM segment, design, manufacture and distribute medical devices primarily used in critical care and surgical applications 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 OEM segment designs, manufactures and supplies devices and instruments for other medical device manufacturers.

The following tables present our segment results for the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Americas	$	1,492,274	$	1,351,699	$	1,141,406
EMEA	588,043		603,813		552,722
Asia	294,328		286,895		269,208
OEM	220,717		205,976		182,967
Net revenues	$	2,595,362	$	2,448,383	$	2,146,303


	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Americas	$	319,933	$	255,798	$	240,982
EMEA	94,424		106,090		92,430
Asia	73,090		78,135		75,637
OEM	57,994		50,294		41,578
Total segment operating profit ₍₁₎	545,441		490,317		450,627
Unallocated expenses₍₂₎	(118,187)		(168,613)		(78,348)
Income from continuing operations before interest, loss on extinguishment of debt and taxes	$	427,254	$	321,704	$	372,279

(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 impairment charges and gain on sale of assets.


	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Americas	$	153,419	$	146,016	$	105,811
EMEA	44,328		47,171		34,322
Asia	14,072		12,917		11,868
OEM	6,550		8,610		8,337
Consolidated depreciation and amortization	$	218,369	$	214,714	$	160,338

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, 2019, 2018 and 2017:


	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Net revenues (based on selling location):
U.S.	$	1,606,248	$	1,449,426	$	1,254,825
Europe	652,069		671,264		591,370
Asia Pacific	241,278		234,090		220,110
All other	95,767		93,603		79,998
	$	2,595,362	$	2,448,383	$	2,146,303
Net property, plant and equipment:
U.S.	$	228,173	$	258,415	$	216,568
Malaysia	53,406		51,952		43,730
Ireland	40,151		41,223		43,867
All other	108,989		81,176		78,834
	$	430,719	$	432,766	$	382,999