Segment And Geographic Information

12 Months Ended

Dec. 31, 2019

Segment And Geographic Information [Abstract]

18. 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, JOTEC products, On-X products,

CardioGenesis cardiac laser therapy, PerClot and PhotoFix. 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):


	2019		2018		2017
Revenues:
Medical devices	$	197,246	$	187,394	$	119,631
Preservation services		78,976		75,447		70,071
Total revenues		276,222		262,841		189,702

Cost of products and preservation services:
Medical devices		55,022		53,772		29,798
Preservation services		38,187		36,085		31,262
Total cost of products and preservation services		93,209		89,857		61,060

Gross margin:
Medical devices		142,224		133,622		89,833
Preservation services		40,789		39,362		38,809
Total gross margin	$	183,013	$	172,984	$	128,642

Net revenues by product for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):


	2019		2018		2017
Products:
BioGlue	$	68,611	$	66,660	$	65,939
JOTEC		64,974		63,341		4,136
On-X		50,096		44,832		37,041
CardioGenesis cardiac laser therapy		6,016		6,217		6,866
PerClot		3,795		3,767		3,533
PhotoFix		3,754		2,577		2,116
Total products		197,246		187,394		119,631

Preservation services:
Cardiac tissue		40,879		35,683		32,510
Vascular tissue		38,097		39,764		37,561
Total preservation services		78,976		75,447		70,071

Total revenues	$	276,222	$	262,841	$	189,702

Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):


	2019		2018		2017
U.S.	$	150,553	$	144,651	$	135,102
International		125,669		118,190		54,600
Total revenues	$	276,222	$	262,841	$	189,702

For the years ended December 31, 2019 and 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 revenues attributed to customers in any individual country outside the U.S. were 10% or less of total revenues.

At December 31, 2019 and 2018, 57% 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 $14.1 million as of December 31, 2019, of which 97% were located in Hechingen, Germany. Our long-lived international assets were $13.1 million as of December 31, 2018, of which 98% were located in Hechingen, Germany. At December 31, 2019 and 2018, $186.7 million and $188.8 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.