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Business Segment, Geographic and Concentration Risk Information
 6 Months Ended
Jul. 01, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION
As a result of the acquisition of Lake Region Medical, the Company now has three reportable segments: Greatbatch Medical, QiG and Lake Region Medical. During the first quarter of 2016, the Company completed the Spin-off of a portion of its QiG segment. See Note 2 “Divestiture and Acquisition” for further description of these transactions. As a result of the Lake Region Medical acquisition and the Spin-off, the Company is re-evaluating its internal financial reporting structure, which may change its product line and segment reporting in the future. This process is expected to be finalized in 2016.
Greatbatch Medical designs and manufactures medical devices and components where Integer either owns the intellectual property or has unique manufacturing and assembly expertise. Greatbatch Medical provides medical devices and components to the cardiac, neuromodulation, orthopedics, portable medical, vascular and energy markets among others. Greatbatch Medical also offers value-added assembly and design engineering services for medical devices that utilize its component products.
The QiG segment focuses on the design and development of complete medical device systems and components. The medical devices QiG designs and develops are full product solutions that utilize the medical technology expertise and capabilities residing within Greatbatch Medical and Lake Region Medical. QiG revenue consists primarily of sales of various medical device products such as implantable pulse generators, programmer systems, battery chargers, patient wands and leads to medical device companies. Once the medical devices developed by QiG reach significant production levels, the responsibility for manufacturing these products may be transferred to Greatbatch Medical.
Lake Region Medical has operated as a segment for Integer since it was acquired during the fourth quarter of 2015. This segment specializes in the design, development, and manufacturing of products across the medical component and device spectrum, primarily serving the cardio, vascular and advanced surgical markets. Lake Region Medical offers fully integrated outsourced manufacturing, regulatory and engineering services, contract manufacturing, finished device assembly services, original device development, and supply chain management.

15.
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued)
As a result of the Lake Region Medical acquisition and the Spin-off, the Company has recast its product line sales into the following four categories:
•
Advanced Surgical, Orthopedics, and Portable Medical: Includes legacy Greatbatch Orthopedics and Portable Medical product line sales plus the legacy Lake Region Medical Advanced Surgical product line sales. Products include components, sub-assemblies, finished devices, implants, instruments and delivery systems for a range of surgical technologies to the advanced surgical market, including laparoscopy, orthopedics and general surgery, biopsy and drug delivery, joint preservation and reconstruction, arthroscopy, and engineered tubing solutions. Products also include life-saving and life-enhancing applications comprising of automated external defibrillators, portable oxygen concentrators, ventilators, and powered surgical tools.
•
Cardio and Vascular: Includes the legacy Greatbatch Vascular product line sales plus the legacy Lake Region Medical Cardio and Vascular product line sales less the legacy Lake Region Medical Cardiac/Neuromodulation sales. Products include introducers, steerable sheaths, guidewires, catheters, and stimulation therapy components, subassemblies and finished devices that deliver therapies for various markets such as coronary and neurovascular disease, peripheral vascular disease, interventional radiology, vascular access, atrial fibrillation, and interventional cardiology, plus products for medical imaging and pharmaceutical delivery.
•
Cardiac/Neuromodulation: Includes the legacy Greatbatch Cardiac/Neuromodulation and QiG sales plus the legacy Lake Region Medical Cardiac/Neuromodulation sales previously included in their Cardio and Vascular product line sales. Products include batteries, capacitors, filtered and unfiltered feed-throughs, engineered components, implantable stimulation leads, and enclosures used in implantable medical devices.
•
Electrochem: Includes the legacy Greatbatch Energy, Military and Environmental product line sales. Products include primary (lithium) cells, and primary and secondary battery packs for demanding applications such as down hole drilling tools.
An analysis and reconciliation of the Company’s business segments, product lines and geographic information to the respective information in the Condensed Consolidated Financial Statements follows. Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped (in thousands): 
 
Three Months Ended
 
Six Months Ended
 
July 1, 2016
 
July 3, 2015
 
July 1, 2016
 
July 3, 2015
Product line sales:
 
 
 
 
 
 
 
Advanced Surgical, Orthopedics, and Portable Medical
$
104,317

 
$
53,181

 
$
195,646

 
$
105,819

Cardio and Vascular
144,219

 
12,907

 
277,869

 
23,263

Cardiac/Neuromodulation
91,623

 
92,257

 
188,698

 
172,873

Electrochem
9,819

 
16,545

 
21,491

 
34,255

Elimination of interproduct line sales
(1,596
)
 
—

 
(3,084
)
 
—

Total sales
348,382

 
174,890

 
$
680,620

 
$
336,210


15.
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued)
 
Three Months Ended
 
Six Months Ended
 
July 1, 2016
 
July 3, 2015
 
July 1, 2016
 
July 3, 2015
Business segment sales:
 
 
 
 
 
 
 
Greatbatch Medical
$
141,167

 
$
172,786

 
$
272,773

 
$
329,763

QiG
2,747

 
2,741

 
6,121

 
7,788

Lake Region Medical
204,934

 
—

 
403,209

 
—

Elimination of intersegment sales(a)
(466
)
 
(637
)
 
(1,483
)
 
(1,341
)
Total sales
348,382

 
174,890

 
$
680,620

 
$
336,210



(a) Greatbatch Medical sales include approximately $0.1 million and $0.3 million of intersegment sales for the three and six months ended July 1, 2016, respectively. Lake Region Medical sales include approximately $0.3 million $1.0 million of intersegment sales for the three and six months ended July 1, 2016, respectively. Intersegment sales for the three and six months periods of 2015 are included in the Greatbatch Medical segment.
 
Three Months Ended
 
Six Months Ended
 
July 1, 2016
 
July 3, 2015
 
July 1, 2016
 
July 3, 2015
Segment income (loss) from operations:
 
 
 
 
 
 
 
Greatbatch Medical
$
14,564

 
$
28,914

 
$
25,579

 
$
50,667

QiG
(700
)
 
(7,002
)
 
(5,909
)
 
(12,452
)
Lake Region Medical
27,356

 
—

 
48,555

 
—

Total segment income from operations
41,220

 
21,912

 
68,225

 
38,215

Unallocated operating expenses
(11,951
)
 
(8,878
)
 
(27,822
)
 
(15,792
)
Operating income
29,269

 
13,034

 
40,403

 
22,423

Unallocated expenses, net
(28,582
)
 
(1,099
)
 
(52,478
)
 
(668
)
Income (loss) before provision for income taxes
$
687

 
$
11,935

 
$
(12,075
)
 
$
21,755


 
Three Months Ended
 
Six Months Ended
 
July 1, 2016
 
July 3, 2015
 
July 1, 2016
 
July 3, 2015
Sales by geographic area:
 
 
 
 
 
 
 
United States
$
204,090

 
$
75,041

 
$
406,213

 
$
145,557

Non-Domestic locations:
 
 
 
 
 
 
 
Puerto Rico
39,344

 
37,415

 
78,472

 
71,431

Belgium
20,491

 
16,018

 
38,657

 
33,385

Rest of world
84,457

 
46,416

 
157,278

 
85,837

Total sales
$
348,382

 
$
174,890

 
$
680,620

 
$
336,210


Three customers accounted for a significant portion of the Company’s sales as follows:
 
Three Months Ended
 
Six Months Ended
 
July 1, 2016
 
July 3, 2015
 
July 1, 2016
 
July 3, 2015
Customer A
17%
 
20%
 
18%
 
21%
Customer B
15%
 
18%
 
15%
 
18%
Customer C
13%
 
12%
 
13%
 
13%
Total
45%
 
50%
 
46%
 
52%

15.
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued)
Long-lived tangible assets by geographic area are as follows (in thousands):
 
As of
 
July 1, 2016
 
January 1, 2016
United States
$
265,208

 
$
264,556

Rest of world
118,021

 
114,936

Total
$
383,229

 
$
379,492