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Business segment information Business segment information | 9 Months Ended
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Sep. 28, 2014
Segment Reporting [Abstract] |
Business segment information | Business segment 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. The Company does not evaluate its operating segments using discrete asset information. Effective January 1, 2014, the Company realigned its operating segments due to changes in the Company’s internal financial reporting structure. The Company’s North American Vascular, Anesthesia/Respiratory and Surgical businesses, which previously comprised much of the former Americas reportable segment, are now separate reportable segments. As a result, the Company now has six reportable segments: Vascular North America, Anesthesia/Respiratory North America, Surgical North America, EMEA, Asia and OEM. Certain operating segments are not material and are therefore included in the “All other” line item in tabular presentations of segment information. Additionally, the Company changed the allocation methodology of certain corporate costs, including manufacturing variances and research and development costs, among its businesses to improve accountability, which resulted in changes to the previously reported segment profitability. All prior comparative periods have been restated to reflect these changes. The Company’s Vascular North America, Anesthesia/Respiratory North America, Surgical North America, EMEA and Asia reportable 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 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 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 28, 2014 and September 29, 2013:
| Three Months Ended |  | Nine Months Ended
| September 28, 2014 |  | September 29, 2013 |  | September 28, 2014 |  | September 29, 2013
| (Dollars in thousands)
Revenue |  |  |  |  |  |  |
Vascular North America | $ | 63,792 |  |  | $ | 55,058 |  |  | $ | 190,485 |  |  | $ | 168,478 |
Anesthesia/Respiratory North America | 54,699 |  |  | 53,842 |  |  | 164,462 |  |  | 170,532 |
Surgical North America | 36,127 |  |  | 34,147 |  |  | 109,327 |  |  | 108,584 |
EMEA | 141,146 |  |  | 132,265 |  |  | 446,061 |  |  | 412,525 |
Asia | 62,035 |  |  | 55,263 |  |  | 174,176 |  |  | 148,040 |
OEM | 39,174 |  |  | 33,774 |  |  | 108,966 |  |  | 97,222 |
All other | 60,200 |  |  | 49,447 |  |  | 170,347 |  |  | 140,351 |
Consolidated net revenues | $ | 457,173 |  |  | $ | 413,796 |  |  | $ | 1,363,824 |  |  | $ | 1,245,732 |
| Three Months Ended |  | Nine Months Ended
| September 28, 2014 |  | September 29, 2013 |  | September 28, 2014 |  | September 29, 2013
| (Dollars in thousands)
Operating Profit |  |  |  |  |  |  |
Vascular North America | $ | 11,870 |  |  | $ | 6,042 |  |  | $ | 31,250 |  |  | $ | 17,394 |
Anesthesia/Respiratory North America | 9,421 |  |  | 3,541 |  |  | 21,401 |  |  | 18,483 |
Surgical North America | 12,394 |  |  | 10,333 |  |  | 37,308 |  |  | 37,646 |
EMEA | 28,810 |  |  | 21,074 |  |  | 85,771 |  |  | 65,542 |
Asia | 14,785 |  |  | 18,894 |  |  | 44,718 |  |  | 44,961 |
OEM | 9,651 |  |  | 6,684 |  |  | 24,551 |  |  | 20,778 |
All other | 12,441 |  |  | 11,071 |  |  | 32,564 |  |  | 22,593 |
Total segment operating profit (1) | 99,372 |  |  | 77,639 |  |  | 277,563 |  |  | 227,397 |
Unallocated expenses (2) | (17,437 | ) |  | (11,597 | ) |  | (61,856 | ) |  | (48,200 | )
Income from continuing operations before interest, loss on extinguishments of debt and taxes | $ | 81,935 |  |  | $ | 66,042 |  |  | $ | 215,707 |  |  | $ | 179,197 |
(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, and restructuring and other impairment charges.
| Three Months Ended |  | Nine Months Ended
| September 28, 2014 |  | September 29, 2013 |  | September 28, 2014 |  | September 29, 2013
| (Dollars in thousands)
Depreciation and Amortization |  |  |  |  |  |  |
Vascular North America | $ | 7,921 |  |  | $ | 7,222 |  |  | $ | 23,842 |  |  | $ | 20,656 |
Anesthesia/Respiratory North America | 5,321 |  |  | 3,948 |  |  | 13,457 |  |  | 10,663 |
Surgical North America | 909 |  |  | 2,476 |  |  | 4,944 |  |  | 7,708 |
EMEA | 9,688 |  |  | 7,035 |  |  | 28,298 |  |  | 20,666 |
Asia | 2,003 |  |  | 1,134 |  |  | 6,146 |  |  | 3,506 |
OEM | 1,651 |  |  | 1,123 |  |  | 4,715 |  |  | 3,370 |
All other | 4,946 |  |  | 4,137 |  |  | 14,852 |  |  | 12,466 |
Consolidated depreciation and amortization | $ | 32,439 |  |  | $ | 27,075 |  |  | $ | 96,254 |  |  | $ | 79,035 |
Geographic Data The following table provides total net revenues for the three and nine months ended September 28, 2014 and September 29, 2013 and total net property, plant and equipment by geographic region as of September 28, 2014 and December 31, 2013:
| Three Months Ended |  | Nine Months Ended
| September 28, 2014 |  | September 29, 2013 |  | September 28, 2014 |  | September 29, 2013
| (Dollars in thousands)
Net revenue (based on selling location) |  |  |  |  |  |  |
United States | $ | 231,278 |  |  | $ | 205,049 |  |  | $ | 676,088 |  |  | $ | 623,397 |
Other Americas | 14,440 |  |  | 12,108 |  |  | 44,399 |  |  | 40,786 |
Europe | 157,797 |  |  | 137,848 |  |  | 500,763 |  |  | 419,062 |
All other | 53,658 |  |  | 58,791 |  |  | 142,574 |  |  | 162,487 |
| $ | 457,173 |  |  | $ | 413,796 |  |  | $ | 1,363,824 |  |  | $ | 1,245,732 |
| September 28, 2014 |  | December 31, 2013
| (Dollars in thousands)
Net property, plant and equipment |  |  |
United States | $ | 201,045 |  |  | $ | 203,985 |
Czech Republic | 38,728 |  |  | 41,607 |
Malaysia | 35,972 |  |  | 29,313 |
All other | 71,488 |  |  | 50,995 |
| $ | 347,233 |  |  | $ | 325,900 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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