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Segment Information
12 Months Ended
Dec. 31, 2017
Segment Information [Abstract]  
Segment Information

20.  Segment and Geographic Information



We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services.  The Medical Devices segment includes external revenues from product sales of BioGlue, BioFoam, On-X products, JOTEC products, CardioGenesis cardiac laser therapy, PerClot, PhotoFix, HeRO Graft through the second quarter of 2016, and ProCol through the date of the sale of the ProCol product line in the first quarter of 2016.  The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues.  There are no intersegment revenues.



The primary measure of segment performance, as viewed by our management, is segment gross margin, or net external revenues less cost of products and preservation services.  We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.



The following table summarizes revenues, cost of products and preservation services, and gross margins for our operating segments (in thousands):







 

 

 

 

 

 

 

 



2017

 

2016

 

2015

Revenues:

 

 

 

 

 

 

 

 

Medical devices

$

119,631 

 

$

113,992 

 

$

83,081 

Preservation services

 

70,071 

 

 

66,388 

 

 

62,817 

Total revenues

 

189,702 

 

 

180,380 

 

 

145,898 



 

 

 

 

 

 

 

 

Cost of products and preservation services:

 

 

 

 

 

 

 

 

Medical devices

 

29,798 

 

 

28,033 

 

 

18,663 

Preservation services

 

31,262 

 

 

33,448 

 

 

36,516 

Total cost of products and preservation services

 

61,060 

 

 

61,481 

 

 

55,179 



 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

 

Medical devices

 

89,833 

 

 

85,959 

 

 

64,418 

Preservation services

 

38,809 

 

 

32,940 

 

 

26,301 

Total gross margin

$

128,642 

 

$

118,899 

 

$

90,719 



Net revenues by product for the years ended December 31, 2017,  2016, and 2015 were as follows (in thousands):







 

 

 

 

 

 

 

 



2017

 

2016

 

2015

Products:

 

 

 

 

 

 

 

 

BioGlue and BioFoam

$

65,939 

 

$

63,461 

 

$

59,332 

On-X

 

37,041 

 

 

34,232 

 

 

--

JOTEC

 

4,136 

 

 

--

 

 

--

CardioGenesis cardiac laser therapy

 

6,866 

 

 

7,864 

 

 

9,419 

PerClot

 

3,533 

 

 

4,021 

 

 

4,083 

PhotoFix

 

2,116 

 

 

1,871 

 

 

1,396 

HeRO Graft

 

--

 

 

2,325 

 

 

7,546 

ProCol

 

--

 

 

218 

 

 

1,305 

Total products

 

119,631 

 

 

113,992 

 

 

83,081 



 

 

 

 

 

 

 

 

Preservation services:

 

 

 

 

 

 

 

 

Cardiac tissue

 

32,510 

 

 

29,697 

 

 

28,059 

Vascular tissue

 

37,561 

 

 

36,691 

 

 

34,758 

Total preservation services

 

70,071 

 

 

66,388 

 

 

62,817 



 

 

 

 

 

 

 

 

Total revenues

$

189,702 

 

$

180,380 

 

$

145,898 



Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2017,  2016, and 2015 were as follows (in thousands):







 

 

 

 

 

 

 

 



2017

 

2016

 

2015

U.S.

$

135,102 

 

$

131,727 

 

$

114,978 

International

 

54,600 

 

 

48,653 

 

 

30,920 

Total revenues

$

189,702 

 

$

180,380 

 

$

145,898 



At December 31, 2017 and 2016 60% and 99%, respectively, of our long‑lived assets were held in the U.S., where the corporate headquarters and a portion of our manufacturing facilities are located. At December 31, 2017 $13.3 million of our long-lived assets were located internationally, of which 99% were located in Hechingen, Germany.  At December 31, 2017 and 2016 $188.3 million and  $78.3 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.