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Segment And Geogrpahic Information
12 Months Ended
Dec. 31, 2018
Segment And Geographic Information [Abstract]  
Segment And Geographic Information

19.  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, JOTEC products, On-X 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):







 

 

 

 

 

 

 

 



2018

 

2017

 

2016

Revenues:

 

 

 

 

 

 

 

 

Medical devices

$

187,394 

 

$

119,631 

 

$

113,992 

Preservation services

 

75,447 

 

 

70,071 

 

 

66,388 

Total revenues

 

262,841 

 

 

189,702 

 

 

180,380 



 

 

 

 

 

 

 

 

Cost of products and preservation services:

 

 

 

 

 

 

 

 

Medical devices

 

53,772 

 

 

29,798 

 

 

28,033 

Preservation services

 

36,085 

 

 

31,262 

 

 

33,448 

Total cost of products and preservation services

 

89,857 

 

 

61,060 

 

 

61,481 



 

 

 

 

 

 

 

 

Gross margin:

 

 

 

 

 

 

 

 

Medical devices

 

133,622 

 

 

89,833 

 

 

85,959 

Preservation services

 

39,362 

 

 

38,809 

 

 

32,940 

Total gross margin

$

172,984 

 

$

128,642 

 

$

118,899 



Net revenues by product for the years ended December 31, 2018,  2017, and 2016 were as follows (in thousands):







 

 

 

 

 

 

 

 



2018

 

2017

 

2016

Products:

 

 

 

 

 

 

 

 

BioGlue and BioFoam

$

66,660 

 

$

65,939 

 

$

63,461 

JOTEC

 

63,341 

 

 

4,136 

 

 

--

On-X

 

44,832 

 

 

37,041 

 

 

34,232 

CardioGenesis cardiac laser therapy

 

6,217 

 

 

6,866 

 

 

7,864 

PerClot

 

3,767 

 

 

3,533 

 

 

4,021 

PhotoFix

 

2,577 

 

 

2,116 

 

 

1,871 

HeRO Graft

 

--

 

 

--

 

 

2,325 

ProCol

 

--

 

 

--

 

 

218 

Total products

 

187,394 

 

 

119,631 

 

 

113,992 



 

 

 

 

 

 

 

 

Preservation services:

 

 

 

 

 

 

 

 

Cardiac tissue

 

35,683 

 

 

32,510 

 

 

29,697 

Vascular tissue

 

39,764 

 

 

37,561 

 

 

36,691 

Total preservation services

 

75,447 

 

 

70,071 

 

 

66,388 



 

 

 

 

 

 

 

 

Total revenues

$

262,841 

 

$

189,702 

 

$

180,380 



Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2018,  2017, and 2016 were as follows (in thousands):







 

 

 

 

 

 

 

 



2018

 

2017

 

2016

U.S.

$

144,651 

 

$

135,102 

 

$

131,727 

International

 

118,190 

 

 

54,600 

 

 

48,653 

Total revenues

$

262,841 

 

$

189,702 

 

$

180,380 



For the year ended December 31, 2018, revenues attributed to customers in Germany accounted for 10% of total revenues as a result of the acquisition of JOTEC in December 2017.  During December 31, 2017 and 2016 revenues attributed to customers in any individual country outside the U.S. were less than 10% of total revenues.



At December 31, 2018 and 2017 57% and 60%, 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.  Our long-lived international assets were $13.1 million as of December 31, 2018, of which 98% were located in Hechingen, Germany.  Our long-lived international assets were $13.3 million as of December 31, 2017, of which 99% were located in Hechingen, Germany.  At December 31, 2018 and 2017 $188.8 million and $188.3 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.