Business segment information

3 Months Ended

Mar. 31, 2013

Business segment information

Note 14 — Business segment information

In the third quarter of 2012, due to changes in the Company’s management and internal reporting structure, the Company’s Latin America operations were moved from the AJLA Segment into the North America Segment. As a result of this change, the North America Segment is now referred to as the Americas Segment and the AJLA Segment is now referred to as the Asia Segment. The change did not affect the Company’s reporting unit structure. All prior comparative periods have been restated to reflect this change.

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. Based on these criteria, the Company has identified four operating segments, which also comprise its four reportable segments.

Three of the four reportable segments are geographically based: Americas (representing the Company’s operations in North America and Latin America), EMEA (representing the Company’s operations in Europe, the Middle East and Africa) and Asia. The fourth reportable segment is Original Equipment Manufacturer and Development Services (“OEM”).

The Company’s geographically based segments 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 the geographically based 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 31, 2013 and April 1, 2012:

	Three Months Ended March 31, 2013
	Americas		EMEA		Asia		OEM		Totals
	(Dollars in thousands)
Segment Results
Segment net revenues from external customers	$	195,753	$	142,418	$	42,368	$	31,338	$	411,877
Segment depreciation and amortization		17,020		7,034		1,185		1,102		26,341
Segment operating profit(1)		20,778		19,108		12,317		6,360		58,563
Segment assets		1,954,026		973,262		242,446		41,415		3,211,149
Segment expenditures for property, plant and equipment		12,304		2,720		34		577		15,635
Restructuring and other impairment charges		7,767		1,294		98		—		9,159
Intersegment revenues		39,599		35,226		10,683		78

	Three Months Ended April 1, 2012
	Americas			EMEA		Asia		OEM		Totals
	(Dollars in thousands)
Segment Results
Segment net revenues from external customers	$	180,337		$	134,600	$	33,959	$	31,671	$	380,567
Segment depreciation and amortization		15,497			5,498		768		907		22,670
Segment operating profit(1)		24,726			21,010		9,460		5,229		60,425
Segment assets		1,747,117			817,347		199,418		89,714		2,853,596
Segment expenditures for property, plant and equipment		7,230			2,695		7		3,201		13,133
Restructuring and other impairment charges		(1,930	)		605		—		—		(1,325	)
Intersegment revenues		39,812			17,567		—		138

(1) Segment operating profit includes a segment’s net revenues from external customers reduced by its cost of goods sold, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses. Segment operating profit excludes goodwill impairment charges, restructuring and impairment charges, interest income and expense and taxes on income.

The following tables present reconciliations of segment results to the Company’s condensed consolidated income (loss) from continuing operations before interest and taxes for the three months ended March 31, 2013 and April 1, 2012:

	Three Months Ended
	March  31, 2013			April  1, 2012
	(Dollars in thousands)
Reconciliation of Segment Operating Profit to Income (Loss) from Continuing Operations Before Interest and Taxes
Segment operating profit	$	58,563		$	60,425
Goodwill impairment		—			(332,128	)
Restructuring and other impairment charges		(9,159	)		1,325
Income (loss) from continuing operations before interest and taxes	$	49,404		$	(270,378	)

	March  31, 2013		April  1, 2012
	(Dollars in thousands)
Reconciliation of Segment Assets to Condensed Consolidated Total Assets
Segment assets	$	3,211,149	$	2,853,596
Corporate assets		474,742		788,264
Assets held for sale		7,836		8,026
Total assets	$	3,693,727	$	3,649,886

	Three Months Ended
	March  31, 2013		April  1, 2012
	(Dollars in thousands)
Reconciliation of Segment Expenditures for Property, Plant and Equipment to Condensed Consolidated Total Expenditures for Property, Plant and Equipment
Segment expenditures for property, plant and equipment	$	15,635	$	13,133
Corporate expenditures for property, plant and equipment		—		197
Total expenditures for property, plant and equipment	$	15,635	$	13,330