XML 51 R25.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Business segments and other information | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
Business segments and other information | 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. The Company does not evaluate its operating segments using discrete asset information. Following the Company's acquisition of Vascular Solutions, the Company commenced an integration program under which it is combining the Vascular Solutions business with some of its legacy businesses. Specifically, the Company is combining the Vascular Solutions North American business with the Company's interventional access business, which formerly was part of the Vascular North America operating segment, and the Company's cardiac business, which formerly was a separate operating segment included in the "all other" category for purposes of segment reporting. These businesses are now in the Company's Interventional North America operating segment. Additionally, the Company is combining the Vascular Solutions businesses in Europe, Asia and Latin America with the Company's legacy businesses in the respective locations, and these Vascular Solutions businesses are now part of the EMEA (Europe, Middle East and Africa), Asia and Latin America operating segments, respectively. The changes in the Company’s operating segments, which became effective in the fourth quarter 2017, also reflect the manner in which the Company’s new chief operating decision maker assesses business performance and allocation of resources. As a result of the operating segment changes described above, the Company has the following seven reportable segments: Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Europe, Middle East and Africa ("EMEA"), Asia and Original Equipment and Development Services ("OEM"). In connection with the presentation of segment information, we will continue to present certain operating segments, which now include Interventional Urology North America and Respiratory North America as well as Latin America, in the “all other” category because they are not material. All prior comparative periods presented have been restated to reflect these changes. Additionally, because these change affected certain of the Company's reporting units, the Company reallocated the goodwill balances using relative fair values of the reporting units and performed goodwill impairment analyses on the affected reporting units. The Company did not record any goodwill impairment charges as a result of these analyses. The Company’s reportable segments, other than the OEM segment, 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 years ended December 31, 2017, 2016 and 2015:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Revenue |  |  |  |  |
Vascular North America | $ | 313,618 |  |  | $ | 295,206 |  |  | $ | 284,097 |
Interventional North America | 220,611 |  |  | 82,431 |  |  | 75,196 |
Anesthesia North America | 197,982 |  |  | 198,772 |  |  | 189,297 |
Surgical North America | 175,216 |  |  | 172,223 |  |  | 161,230 |
EMEA | 552,722 |  |  | 510,934 |  |  | 514,443 |
Asia | 269,208 |  |  | 249,416 |  |  | 241,726 |
OEM | 182,967 |  |  | 160,990 |  |  | 149,399 |
All other | 233,979 |  |  | 198,055 |  |  | 194,302 |
Consolidated net revenues | $ | 2,146,303 |  |  | $ | 1,868,027 |  |  | $ | 1,809,690 |
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Operating Profit |  |  |  |  |
Vascular North America | $ | 77,036 |  |  | $ | 77,122 |  |  | $ | 59,441 |
Interventional North America | 25,972 |  |  | 13,264 |  |  | 5,800 |
Anesthesia North America | 62,901 |  |  | 55,544 |  |  | 48,311 |
Surgical North America | 63,931 |  |  | 56,608 |  |  | 52,529 |
EMEA | 92,430 |  |  | 84,392 |  |  | 92,326 |
Asia | 75,637 |  |  | 75,770 |  |  | 67,887 |
OEM | 41,578 |  |  | 33,641 |  |  | 33,162 |
All other | 11,142 |  |  | 26,486 |  |  | 28,399 |
Total segment operating profit (1) | 450,627 |  |  | 422,827 |  |  | 387,855 |
Unallocated expenses (2) | (78,348 | ) |  | (103,374 | ) |  | (71,964 | )
Income from continuing operations before interest, loss on extinguishment of debt and taxes | $ | 372,279 |  |  | $ | 319,453 |  |  | $ | 315,891 |
(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,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Depreciation and Amortization |  |  |  |  |
Vascular North America | $ | 31,058 |  |  | $ | 35,117 |  |  | $ | 35,259 |
Interventional North America | 29,108 |  |  | 6,993 |  |  | 7,823 |
Anesthesia North America | 8,573 |  |  | 10,932 |  |  | 7,089 |
Surgical North America | 8,694 |  |  | 10,459 |  |  | 12,289 |
EMEA | 34,322 |  |  | 30,505 |  |  | 32,178 |
Asia | 11,868 |  |  | 11,275 |  |  | 11,382 |
OEM | 8,337 |  |  | 8,404 |  |  | 6,834 |
All other | 28,378 |  |  | 14,661 |  |  | 12,480 |
Consolidated depreciation and amortization | $ | 160,338 |  |  | $ | 128,346 |  |  | $ | 125,334 |
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, 2017, 2016 and 2015:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Net revenues (based on the Company's selling location): |  |  |  |  |
United States | $ | 1,254,825 |  |  | $ | 1,018,786 |  |  | $ | 967,819 |
Europe | 591,370 |  |  | 567,320 |  |  | 570,672 |
Asia and Asia Pacific | 220,110 |  |  | 208,841 |  |  | 196,796 |
All other | 79,998 |  |  | 73,080 |  |  | 74,403 |
| $ | 2,146,303 |  |  | $ | 1,868,027 |  |  | $ | 1,809,690 |
Net property, plant and equipment: |  |  |  |  |
United States | $ | 216,568 |  |  | $ | 167,167 |  |  | $ | 178,895 |
Malaysia | 43,730 |  |  | 31,415 |  |  | 33,777 |
Ireland | 43,867 |  |  | 36,569 |  |  | 33,219 |
Czech Republic | 35,715 |  |  | 30,843 |  |  | 32,305 |
All other | 43,119 |  |  | 36,905 |  |  | 37,927 |
| $ | 382,999 |  |  | $ | 302,899 |  |  | $ | 316,123 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration