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Segment Information
6 Months Ended
Jul. 01, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company organizes its business into two reportable segments: (1) Medical and (2) Non-Medical. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker, to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting. For purposes of segment reporting, intercompany sales between segments are not material.
The Company has communicated to certain customers that it is exiting certain markets it serves in the Advanced Surgical, Orthopedics & Portable Medical product line. In order to align with the planned exit of those markets and better align to its end markets and product line strategies, the Company recast its product line sales within the Medical segment to reflect the reclassification of certain products from the historical product lines to the product lines associated with those revenues that will be utilized for future revenue reporting. The Company believes the revised presentation will provide improved reporting and better transparency into the operational results of its business and markets. The Company has reclassified the prior year information in the table below to conform to the current year presentation. For the three and six months ended July 2, 2021, Cardio & Vascular sales of $7.9 million and $15.9 million, respectively, and Advanced Surgical, Orthopedics & Portable Medical sales of $6.0 million and $11.3 million, respectively, were reclassified to the Cardiac Rhythm Management & Neuromodulation product line.
The following table presents sales by product line (in thousands):
 Three Months EndedSix Months Ended
July 1,
2022
July 2,
2021
July 1,
2022
July 2,
2021
Segment sales by product line:
Medical
Cardio & Vascular$180,604 $144,683 $339,641 $285,889 
Cardiac Rhythm Management & Neuromodulation
135,945 133,660 259,269 255,363 
Advanced Surgical, Orthopedics & Portable Medical23,285 23,283 42,951 43,339 
Total Medical339,834 301,626 641,861 584,591 
Non-Medical10,247 10,397 19,132 17,899 
Total sales$350,081 $312,023 $660,993 $602,490 
The following table presents income for the Company’s reportable segments (in thousands):
 Three Months EndedSix Months Ended
July 1,
2022
July 2,
2021
July 1,
2022
July 2,
2021
Segment income:
Medical$54,580 $56,439 $98,728 $111,964 
Non-Medical1,625 3,356 2,290 3,358 
Total segment income56,205 59,795 101,018 115,322 
Unallocated operating expenses
(23,498)(20,445)(45,814)(41,364)
Operating income32,707 39,350 55,204 73,958 
Unallocated expenses, net(8,284)(8,572)(16,833)(18,202)
Income before taxes$24,423 $30,778 $38,371 $55,756