v2.4.0.6
Business Segment, Geographic and Concentration Risk Information
 12 Months Ended
Dec. 30, 2011
Business Segment, Geographic and Concentration Risk Information [Abstract]  
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION

19. BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION

 

The Company operates its business in two reportable segments – Greatbatch Medical and Electrochem Solutions (“Electrochem”). The Greatbatch Medical segment designs and manufactures medical devices and components primarily for the CRM, Neuromodulation, Vascular Access and Orthopaedic markets. Additionally, Greatbatch Medical offers value-added assembly and design engineering services for products that incorporate Greatbatch Medical components. As a result of the strategy put in place over three years ago, Greatbatch Medical now offers its customers complete medical devices including design, development, manufacturing, regulatory submission and supporting worldwide distribution. This medical device strategy is being facilitated through the Company's QiG Group and leverages the component technology of Greatbatch Medical and Electrochem in the Company's core markets: Cardiovascular, Neuromodulation and Orthopaedic. Once the QiG Group designs and develops a medical device, it is manufactured by Greatbatch Medical. The operating expenses (RD&E, SG&A) of the QiG Group are included within the Greatbatch Medical segment.

 

Electrochem designs, manufactures and distributes primary and rechargeable batteries, battery packs and wireless sensors for demanding applications in markets such as energy, security, portable medical, environmental monitoring and more.

 

 

 

The Company defines segment income from operations as sales less cost of sales including amortization and expenses attributable to segment-specific SG&A, RD&E expenses, and other operating expenses. Segment income also includes a portion of non-segment specific SG&A expenses based on allocations appropriate to the expense categories. The remaining unallocated operating and other expenses are primarily administrative corporate headquarters expenses and capital costs that are not allocated to reportable segments. Transactions between the two segments are not significant.

 

Significant charges (gains) included in the Company's business segment results are as follows (in thousands):

    Year Ended
    December 30, December 31, January 1,
    2011 2010 2010
 Greatbatch Medical        
  Intangible asset write-down$ - $ - $ 15,921
 Electrochem        
  Electrochem Litigation charge (gain)  -  (9,500)   34,500

An analysis and reconciliation of the Company's business segment, product line and geographic information to the respective information in the Consolidated Financial Statements follows. Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped to (in thousands):

    Year Ended
    December 30, December 31, January 1,
 Sales:2011 2010 2010
 Greatbatch Medical        
  CRM/Neuromodulation$ 303,690 $ 303,521 $ 305,354
  Vascular Access  45,098   38,000   35,816
  Orthopaedic  140,277   118,748   113,897
   Total Greatbatch Medical  489,065   460,269   455,067
 Electrochem  79,757   73,156   66,754
   Total sales$ 568,822 $ 533,425 $ 521,821

    Year Ended
     December 30,  December 31,  January 1,
   2011  2010  2010
 Segment income (loss) from operations:        
  Greatbatch Medical$ 62,461 $ 62,477 $ 46,270
  Electrochem  14,965   22,195  (32,734)
 Total segment income from operations  77,426   84,672   13,536
 Unallocated operating expenses  (15,727)   (15,678)   (12,488)
 Operating income as reported  61,699   68,994   1,048
 Unallocated other expense  (13,307)   (19,669)   (19,225)
 Income (loss) before provision (benefit) for        
  income taxes as reported$ 48,392 $ 49,325 $ (18,177)

    Year Ended
    December 30, December 31, January 1,
  2011 2010 2010
 Depreciation and Amortization:        
  Greatbatch Medical$ 28,571 $ 28,117 $ 29,869
  Electrochem  2,965   2,660  2,860
 Total depreciation and amortization included        
  in segment income from operations  31,536   30,777   32,729
 Unallocated depreciation and amortization  16,159   15,670   14,500
 Total depreciation and amortization$ 47,695 $ 46,447 $ 47,229

    Year Ended
     December 30,  December 31,  January 1,
   2011  2010  2010
 Expenditures for tangible long-lived assets,        
  excluding acquisitions:        
  Greatbatch Medical$ 22,509 $ 15,088 $ 11,261
  Electrochem  1,072   763  910
 Total reportable segments  23,581   15,851   12,171
 Unallocated long-lived tangible assets  741   1,120   7,040
 Total expenditures$ 24,322 $ 16,971 $ 19,211

    At
    December 30, December 31,
  2011 2010
 Identifiable assets, net:     
  Greatbatch Medical$ 653,628 $ 641,591
  Electrochem  161,904   71,480
 Total reportable segments  815,532   713,071
 Unallocated assets  65,815   63,905
 Total assets$ 881,347 $ 776,976

    Year Ended
    December 30, December 31, January 1,
  2011 2010 2010
 Sales by geographic area:
  United States$ 256,987 $ 243,827 $ 245,974
 Non-Domestic locations:        
  Puerto Rico  94,059   88,369   76,823
  Belgium  62,978   58,014   29,431
  United Kingdom & Ireland  54,029   56,903   66,255
  France  5,700   6,318   37,373
  Rest of world  95,069   79,994   65,965
   Total sales$ 568,822 $ 533,425 $ 521,821

  At
   December 30,  December 31,
 Long-lived tangible assets: 2011  2010
 United States$ 113,693 $ 126,519
 Rest of world  32,113   36,095
 Total$ 145,806 $ 162,614

             
 A significant portion of the Company’s sales and accounts receivable were to four customers as follows:
             
    Sales Accounts Receivable
    Year Ended At
    December 30, December 31, January 1, December 30, December 31,
  2011 2010 2010 2011 2010
 Customer A19% 21% 22% 7% 15%
 Customer B19% 19% 17% 23% 13%
 Customer C13% 12% 12% 6% 8%
 Customer D8% 10% 12% 6% 14%
    59% 62% 63% 42% 50%