Note 16 — 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. Based on these criteria, the Company identified its 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 twelve months ended December 31, 2013, 2012 and 2011:

	Year Ended December 31, 2013
Segment Results	Americas		EMEA		Asia		OEM		Totals
	(Dollars in thousands)
Segment net revenues from external customers	$	800,464	$	557,427	$	207,207	$	131,173	$	1,696,271
Segment depreciation and amortization		69,653		28,938		4,774		4,570		107,935
Segment operating profit⁽¹⁾		97,386		76,199		70,800		27,328		271,713
Segment assets		2,266,161		1,008,329		240,535		62,743		3,577,768
Segment expenditures for property, plant and equipment		47,554		11,487		754		2,625		62,420
Restructuring and other impairment charges		18,265		19,007		592		588		38,452
Intersegment revenues		128,512		153,951		40,579		519

	Year Ended December 31, 2012
Segment Results	Americas		EMEA		Asia		OEM		Totals
	(Dollars in thousands)
Segment net revenues from external customers	$	726,810	$	510,248	$	173,721	$	140,230	$	1,551,009
Segment depreciation and amortization		64,174		22,974		3,653		4,083		94,884
Segment operating profit⁽¹⁾		91,627		54,746		59,421		31,664		237,458
Segment assets		1,947,583		985,069		245,578		33,236		3,211,466
Segment expenditures for property, plant and equipment		32,023		14,717		472		10,830		58,042
Restructuring and other impairment charges		743		2,294		—		—		3,037
Intersegment revenues		135,499		76,967		4,660		422

	Year Ended December 31, 2011
Segment Results	Americas		EMEA		Asia		OEM		Totals
	(Dollars in thousands)
Segment net revenues from external customers	$	688,036	$	525,277	$	149,585	$	129,630	$	1,492,528
Segment depreciation and amortization		65,580		23,419		3,848		3,649		96,496
Segment operating profit⁽¹⁾		90,046		74,311		47,101		24,699		236,157
Segment assets		2,078,850		789,978		199,684		27,240		3,095,752
Segment expenditures for property, plant and equipment		23,203		11,843		804		5,565		41,415
Restructuring and other impairment charges		4,626		1,379		—		—		6,005
Intersegment revenues		137,499		67,199		1		464

(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, net (gain) loss on sales of businesses and assets, interest income and expense, loss on extinguishment of debt and taxes on income.

The following tables present reconciliations of segment results to the Company’s consolidated income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes for the twelve months ended December 31, 2013, 2012 and , 2011:

Reconciliation of Segment Operating Profit to Income (Loss) from Continuing Operations Before Interest, Loss on Extinguishments of Debt and Taxes	Year Ended
	2013			2012			2011
	(Dollars in thousands)
Segment operating profit	$	271,713		$	237,458		$	236,157
Goodwill impairment		—			(332,128	)		—
Restructuring and other impairment charges		(38,452	)		(3,037	)		(6,005	)
Net gain (loss) on sales of businesses and assets		—			332			(582	)
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes	$	233,261		$	(97,375	)	$	229,570

Reconciliation of Segment Assets to Consolidated Total Assets	Year Ended
	2013		2012		2011
	(Dollars in thousands)
Segment assets	$	3,577,768	$	3,211,466	$	3,095,752
Corporate assets		620,811		514,258		767,231
Assets of businesses divested		—		—		53,218
Assets held for sale		10,428		7,963		7,902
Total assets	$	4,209,007	$	3,733,687	$	3,924,103

Reconciliation of Segment Expenditures for Property, Plant and Equipment to Consolidated Total Expenditures for Property, Plant and Equipment	Year Ended
	2013		2012		2011
	(Dollars in thousands)
Segment expenditures for property, plant and equipment	$	62,420	$	58,042	$	41,415
Corporate expenditures for property, plant and equipment		1,160		7,352		3,167
Total expenditures for property, plant and equipment	$	63,580	$	65,394	$	44,582

Effective January 1, 2014, the Company realigned its operating segments. The Vascular, Anesthesia/Respiratory and Surgical businesses, which previously comprised much of the Americas reporting segment, are now separate reporting segments. Additionally, the Company made changes to the allocation methodology of certain costs, including manufacturing variances and research and development costs, amongst the businesses to improve accountability. Because the change in segment reporting structure became effective in the first quarter of 2014, the segment information presented above does not reflect this change.

The following table provides total net revenues and total net property, plant and equipment by geographic region for the years ended December 31, 2013, 2012 and 2011:

	Year Ended
	2013		2012		2011
	(Dollars in thousands)
Net revenues (based on business unit location):
United States	$	844,884	$	789,771	$	762,957
Other Americas		57,656		53,665		55,228
Germany		133,598		123,355		128,072
Other Europe		438,567		393,627		403,274
All Other		221,566		190,591		142,997
	$	1,696,271	$	1,551,009	$	1,492,528
Net property, plant and equipment:
United States	$	203,985	$	180,833	$	159,042
Other Americas		12,350		12,828		12,492
Germany		12,135		12,197		8,549
Other Europe		61,891		58,843		53,775
All Other		35,539		33,244		18,054
	$	325,900	$	297,945	$	251,912