XML 53 R38.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Geographic and Segment Information (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2018
Segment Reporting [Abstract] |
Revenue from External Customers by Geographic Areas | The table below presents net sales by operating segment and geographic region (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Cardiopulmonary |  |  |  |  |  |  |  |
United States |  | $ | 42,139 |  |  | $ | 39,719 |  |  | $ | 80,584 |  |  | $ | 71,895 |
Europe |  | 35,916 |  |  | 33,959 |  |  | 72,786 |  |  | 64,568 |
Rest of world |  | 58,584 |  |  | 50,467 |  |  | 108,399 |  |  | 94,980 |
|  | 136,639 |  |  | 124,145 |  |  | 261,769 |  |  | 231,443 |
Heart Valves |  |  |  |  |  |  |  |
United States |  | 6,147 |  |  | 6,205 |  |  | 12,683 |  |  | 12,274 |
Europe |  | 11,863 |  |  | 10,684 |  |  | 23,979 |  |  | 21,031 |
Rest of world |  | 15,792 |  |  | 17,552 |  |  | 28,182 |  |  | 33,042 |
|  | 33,802 |  |  | 34,441 |  |  | 64,844 |  |  | 66,347 |
Advanced Circulatory Support |  |  |  |  |  |  |  |
United States |  | 5,468 |  |  | — |  |  | 5,468 |  |  | — |
Europe |  | 353 |  |  | — |  |  | 353 |  |  | — |
Rest of world |  | 194 |  |  | — |  |  | 194 |  |  | — |
|  | 6,015 |  |  | — |  |  | 6,015 |  |  | — |
Cardiac Surgery |  |  |  |  |  |  |  |
United States |  | 53,754 |  |  | 45,924 |  |  | 98,735 |  |  | 84,169 |
Europe |  | 48,132 |  |  | 44,643 |  |  | 97,118 |  |  | 85,599 |
Rest of world |  | 74,570 |  |  | 68,019 |  |  | 136,775 |  |  | 128,022 |
|  | 176,456 |  |  | 158,586 |  |  | 332,628 |  |  | 297,790 |
Neuromodulation |  |  |  |  |  |  |  |
United States |  | 89,395 |  |  | 81,405 |  |  | 167,387 |  |  | 155,064 |
Europe |  | 11,943 |  |  | 9,514 |  |  | 22,234 |  |  | 17,443 |
Rest of world |  | 9,315 |  |  | 6,096 |  |  | 14,876 |  |  | 11,667 |
|  | 110,653 |  |  | 97,015 |  |  | 204,497 |  |  | 184,174 |
Other |  | 389 |  |  | 242 |  |  | 771 |  |  | 704 |
Totals |  |  |  |  |  |  |  |
United States |  | 143,149 |  |  | 127,329 |  |  | 266,122 |  |  | 239,233 |
Europe (1) (2) |  | 60,075 |  |  | 54,157 |  |  | 119,352 |  |  | 103,042 |
Rest of world |  | 84,274 |  |  | 74,357 |  |  | 152,422 |  |  | 140,393 |
Total (3) |  | $ | 287,498 |  |  | $ | 255,843 |  |  | $ | 537,896 |  |  | $ | 482,668 |
(1) | Net sales include $8.4 million and $9.2 million in the United Kingdom, our country of domicile, for the three months ended June 30, 2018 and June 30, 2017, respectively. Net sales in the United Kingdom were $16.6 million and $17.3 million for the six months ended June 30, 2018 and June 30, 2017, respectively.
(2) | Europe sales include those countries in which we have a direct sales presence, whereas European countries in which we sell through distributors are included in Rest of world.
(3) | No single customer represented over 10% of our consolidated net sales and no country’s net sales exceeded 10% of our consolidated sales except for the U.S.
Schedule of Segment Reporting Information, by Segment | Operating income by segment is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Operating Income from Continuing Operations |  | 2018 |  | 2017 |  | 2018 |  | 2017
Cardiac Surgery |  | $ | 16,337 |  |  | $ | 23,773 |  |  | $ | 26,595 |  |  | $ | 39,806 |
Neuromodulation |  | 61,389 |  |  | 51,264 |  |  | 100,123 |  |  | 92,020 |
Other |  | (41,417 | ) |  | (33,037 | ) |  | (64,237 | ) |  | (49,903 | )
Total reportable segment income from continuing operations |  | 36,309 |  |  | 42,000 |  |  | 62,481 |  |  | 81,923 |
Merger and integration expenses |  | 4,409 |  |  | 3,512 |  |  | 7,369 |  |  | 5,698 |
Restructuring expenses |  | 476 |  |  | 2,597 |  |  | 2,357 |  |  | 12,627 |
Amortization of intangibles |  | 9,817 |  |  | 8,116 |  |  | 18,618 |  |  | 16,076 |
Operating income from continuing operations |  | $ | 21,607 |  |  | $ | 27,775 |  |  | $ | 34,137 |  |  | $ | 47,522 |
Assets by reportable segment (in thousands):
Assets |  | June 30, 2018 |  | December 31, 2017
Cardiac Surgery |  | $ | 1,535,096 |  |  | $ | 1,386,032 |
Neuromodulation |  | 764,348 |  |  | 532,894 |
Other (1) |  | 297,692 |  |  | 334,276 |
Discontinued operations |  | — |  |  | 250,689 |
Total assets |  | $ | 2,597,136 |  |  | $ | 2,503,891 |
(1) | Other includes the impact of ASU 2016-16. Refer to “Note 18. New Accounting Pronouncements.”
Capital expenditures by segment (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Capital expenditures |  | 2018 |  | 2017 |  | 2018 |  | 2017
Cardiac Surgery |  | $ | 4,594 |  |  | $ | 3,957 |  |  | $ | 7,725 |  |  | $ | 7,751 |
Neuromodulation |  | 500 |  |  | 517 |  |  | 847 |  |  | 1,978 |
Other |  | 1,256 |  |  | 1,148 |  |  | 2,699 |  |  | 2,806 |
Discontinued operations |  | — |  |  | 1,185 |  |  | 925 |  |  | 2,388 |
Total |  | $ | 6,350 |  |  | $ | 6,807 |  |  | $ | 12,196 |  |  | $ | 14,923 |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2018 were as follows (in thousands):
|  | Neuromodulation |  | Cardiac Surgery |  | Other |  | Total
December 31, 2017 |  | $ | 315,943 |  |  | $ | 425,882 |  |  | $ | 42,417 |  |  | $ | 784,242 |
Goodwill as a result of acquisitions (1) |  | 82,596 |  |  | 118,917 |  |  | — |  |  | 201,513 |
Foreign currency adjustments |  | — |  |  | (20,058 | ) |  | — |  |  | (20,058 | )
June 30, 2018 |  | $ | 398,539 |  |  | $ | 524,741 |  |  | $ | 42,417 |  |  | $ | 965,697 |
(1) | Goodwill recognized as a result of the ImThera and TandemLife acquisitions. Refer to “Note 3. Business Combinations.”
Long-lived Assets by Geographic Areas | Property, plant and equipment, net by geography are as follows (in thousands):
PP&E |  | June 30, 2018 |  | December 31, 2017
United States |  | $ | 64,298 |  |  | $ | 62,154 |
Europe |  | 111,045 |  |  | 119,133 |
Rest of world |  | 10,813 |  |  | 11,072 |
Total |  | $ | 186,156 |  |  | $ | 192,359 |

X
- Definition Tabular disclosure of long-lived assets, excluding financial instruments, long-term customer relationships of a financial institution, mortgage rights, deferred policy acquisition costs, and deferred tax assets, by geographic areas located in the entity's country of domicile and foreign countries in which the entity holds assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph b -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e9038-108599 + Details
Name: | us-gaap_LongLivedAssetsByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph a -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e9038-108599 + Details
Name: | us-gaap_RevenueFromExternalCustomersByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13854-109267 + Details
Name: | us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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