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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

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