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Business segment information
 9 Months Ended
Sep. 30, 2012
Business segment information

Note 14 — Business segment information

In the first quarter of 2012, as a result of a reorganization of the Company’s internal business unit reporting structure and related internal financial reporting, the Company changed its segment reporting from a single operating segment to four operating segments. During 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 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 and nine months ended September 30, 2012 and September 25, 2011:

 

     Three Months Ended September 30, 2012  
     Americas      EMEA      Asia      OEM      Totals  
     (Dollars in thousands)  
Segment Results               

Segment net revenues from external customers

    $ 169,548       $ 116,015       $ 45,592       $ 36,899       $ 368,054   

Segment depreciation and amortization

      16,439         5,249         967         1,058         23,713   

Segment operating profit(1)

      17,476         5,318         18,718         9,417         50,929   

Segment expenditures for property, plant and equipment

      9,253         3,248         43         2,052         14,596   

Intersegment revenues

      38,874         17,136         —           94      

 

     Three Months Ended September 25, 2011  
     Americas      EMEA      Asia      OEM      Totals  
     (Dollars in thousands)  
Segment Results               

Segment net revenues from external customers

    $ 167,271       $ 127,121       $ 35,114       $ 33,235       $ 362,741   

Segment depreciation and amortization

      16,440         5,875         970         877         24,162   

Segment operating profit(1)

      21,526         20,900         12,258         7,048         61,732   

Segment expenditures for property, plant and equipment

      7,565         3,299         234         1,068         12,166   

Intersegment revenues

      41,245         17,036         —           129      

 

    Nine Months Ended September 30, 2012  
    Americas     EMEA     Asia     OEM     Totals  
    (Dollars in thousands)  
Segment Results          

Segment net revenues from external customers

   $ 526,685      $ 377,513      $ 123,205      $ 104,550      $ 1,131,953   

Segment depreciation and amortization

     47,482        16,096        2,561        3,022        69,161   

Segment operating profit(1)

     64,975        46,706        41,500        22,884        176,065   

Segment assets

     1,784,773        767,995        268,669        38,835        2,860,272   

Segment expenditures for property, plant and equipment

     20,870        9,620        105        8,545        39,140   

Intersegment revenues

     114,562        52,235        —          382     

 

    Nine Months Ended September 25, 2011  
    Americas     EMEA     Asia     OEM     Totals  
    (Dollars in thousands)  
Segment Results          

Segment net revenues from external customers

   $ 503,394      $ 390,332      $ 104,957      $ 90,807      $ 1,089,490   

Segment depreciation and amortization

     49,365        17,565        2,864        2,711        72,505   

Segment operating profit(1)

     63,699        55,960        34,576        15,861        170,096   

Segment assets

     2,079,348        821,659        206,230        77,932        3,185,169   

Segment expenditures for property, plant and equipment

     16,163        7,283        563        3,135        27,144   

Intersegment revenues

     115,418        48,547        1        362     

 

(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, and an allocation of corporate expenses. Segment operating profit excludes goodwill impairment charges, restructuring and impairment charges, gain 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 condensed consolidated results for the three and nine months ended September 30, 2012 and September 25, 2011:

 

    Three Months Ended     Nine Months Ended  
  September 30,
2012		     September 25,
2011		     September 30,
2012		     September 25,
2011		  
    (Dollars in thousands)  

Reconciliation of Segment Operating Profit to Income (Loss) from Continuing Operations Before Interest, Loss on Extinguishments of Debt and Taxes

        

Segment operating profit

   $ 50,929      $ 61,732      $ 176,065      $ 170,096   

Goodwill impairment

     —          —          (332,128 )      —     

Restructuring and other impairment charges

     (1,088 )      173        (84 )      (3,598 ) 

Gain on sales of businesses and assets

     —          —          332        —     
 

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes

   $ 49,841      $ 61,905      $ (155,815 )    $ 166,498   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

     September 30,
2012		      September 25,
2011		  
     (Dollars in thousands)  

Reconciliation of Segment Assets to Condensed Consolidated Total Assets

      

Segment assets(1)

    $ 2,860,272       $ 3,185,169   

Corporate assets(2)

      802,656         565,249   

Assets of businesses divested(3)

      —           106,591   

Assets held for sale

      7,861         11,702   
  

 

 

     

 

 

  

Total assets

    $ 3,670,789       $ 3,868,711   
  

 

 

     

 

 

  

 

(1) Segment assets for the 2011 period include assets of the orthopedic business of the Company’s OEM Segment, which, as of September 30, 2012, had been disposed in connection with the sale of the business.
(2) Increase in corporate assets from the prior period reflects higher cash balances as a result of the sale of businesses in the fourth quarter of 2011.
(3) Assets of businesses divested were previously reported as assets held for sale in 2011.

 

    Three Months Ended     Nine Months Ended  
  September 30,
2012		     September 25,
2011		     September 30,
2012		     September 25,
2011		  
    (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

   $ 14,596      $ 12,166      $ 39,140      $ 27,144   

Corporate expenditures for property, plant and equipment

     2,603        10        6,952        164   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenditures for property, plant and equipment

   $ 17,199      $ 12,176      $ 46,092      $ 27,308