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Geographic and Segment Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Net sales and income from operations by segment (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
Net Sales:		2017				2016				2017				2016
Cardiac Surgery		$	159,822			$	148,518			$	457,612			$	453,012
Neuromodulation		91,016				89,504				275,190				260,901
Cardiac Rhythm Management		58,411				56,768				182,235				188,057
Other		415				478				1,119				1,314
		$	309,664			$	295,268			$	916,156			$	903,284

		Three Months Ended September 30,								Nine Months Ended September 30,
Income from Operations:		2017				2016				2017				2016
Cardiac Surgery		$	23,807			$	17,791			$	63,490			$	29,197
Neuromodulation		45,932				47,049				139,357				134,871
Cardiac Rhythm Management		5,427				(4,598		)		13,536				(14,432		)
Other		(27,947		)		(13,525		)		(79,378		)		(49,090		)
Total Reportable Segments’ Income from Operations		47,219				46,717				137,005				100,546
Merger and integration expenses		2,013				7,576				7,743				20,537
Restructuring expenses		792				4,381				12,060				37,219
Amortization of intangibles		12,350				11,775				35,445				33,959
Income from operations		$	32,064			$	22,985			$	81,757			$	8,831

The following tables present our assets and capital expenditures by segment (in thousands):

Assets:		September 30, 2017				December 31, 2016
Cardiac Surgery		$	1,414,260			$	1,277,799
Neuromodulation		564,785				611,085
Cardiac Rhythm Management		351,390				341,998
Other		272,695				111,749
		$	2,603,130			$	2,342,631

		Three Months Ended September 30,								Nine Months Ended September 30,
Capital expenditures:		2017				2016				2017				2016
Cardiac Surgery		$	5,541			$	6,465			$	13,292			$	16,774
Neuromodulation		370				1,781				2,348				5,602
Cardiac Rhythm Management		1,537				1,591				4,343				2,786
Other		1,633				2,435				4,021				3,766
		$	9,081			$	12,272			$	24,004			$	28,928

Schedule of Goodwill

The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2017 were as follows (in thousands):

		Neuromodulation				Cardiac Surgery				Cardiac Rhythm Management				Other				Total
December 31, 2016		$	315,943			$	375,769			$	—			$	—			$	691,712
Goodwill as a result of acquisitions (1)		—				—				—				42,418				42,418
Foreign currency adjustments		—				46,940				—				—				46,940
September 30, 2017		$	315,943			$	422,709			$	—			$	42,418			$	781,070

(1) Goodwill recognized as a result of the Caisson acquisition. Refer to “Note 2. Acquisitions.”

Revenue from External Customers by Geographic Areas

We operate under three geographic regions: United States, Europe, and Rest of world. Net sales to external customers by geography are determined based on the country the products are shipped to and are as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
Net Sales		2017				2016				2017				2016
United States		$	122,208			$	123,810			$	366,115			$	362,358
Europe (1) (2)		92,953				91,245				294,338				301,727
Rest of world		94,503				80,213				255,703				239,199
Total (3)		$	309,664			$	295,268			$	916,156			$	903,284

(1) Net sales to external customers in the UK include $9.6 million and $26.8 million for the three and nine months ended September 30, 2017, respectively and $8.8 million and $27.9 million for the three and nine months ended September 30, 2016, respectively.

(2) Includes those countries in Europe where we have a direct sales presence. Countries where sales are made through distributors are included in ‘Rest of world’.

(3) No single customer represented over 10% of our consolidated net sales. Except for the U.S. and France, no country’s net sales exceeded 10% of our consolidated net sales. French sales were $29.6 million and $96.6 million for the three and nine months ended September 30, 2017, respectively, and $28.9 million and $95.9 million for the three and nine months ended September 30, 2016, respectively.

Long-lived Assets by Geographic Areas

Property, plant and equipment, net by geography are as follows (in thousands):

PP&E		September 30, 2017				December 31, 2016
United States		$	62,630			$	61,279
Europe		137,682				130,777
Rest of world		13,457				31,786
Total		$	213,769			$	223,842

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