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GEOGRAPHIC AND SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
GEOGRAPHIC AND SEGMENT INFORMATION | GEOGRAPHIC AND SEGMENT INFORMATION Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Prior to the first quarter of 2017, we disclosed only one reporting segment. Beginning in 2017, our reportable segments are disclosed as principally organized and managed as three operating segments: Core, OEM and Advanced Energy. We adopted reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the growth in Advanced Energy and the differing behavior of the Core and OEM product lines. The Corporate & Other category includes certain unallocated corporate, operational, research and development and marketing costs which were not specifically attributed to any reportable segment. Net assets are shared, therefore, not allocated to the reportable segments. The OEM segment is primarily development contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred. Summarized financial information with respect to reportable segments is as follows:
| Three Months Ended September 30, 2017
(In thousands) | Core |  | OEM |  | Advanced Energy |  | Corporate (Other) |  | Total
Sales | $ | 6,696 |  |  | $ | 525 |  |  | $ | 2,126 |  |  | $ | — |  |  | $ | 9,347 |
Income (loss) from operations (1) | 1,699 |  |  | 323 |  |  | (718 | ) |  | (2,438 | ) |  | (1,134 | )
Interest expense, net | — |  |  | — |  |  | — |  |  | (36 | ) |  | (36 | )
Change in fair value of derivative liabilities | — |  |  | — |  |  | — |  |  | (69 | ) |  | (69 | )
Income tax expense | — |  |  | — |  |  | — |  |  | 6 |  |  | 6 |
Depreciation and amortization | — |  |  | — |  |  | — |  |  | 171 |  |  | 171 |
| Three Months Ended September 30, 2016
(In thousands) | Core |  | OEM |  | Advanced Energy |  | Corporate (Other) |  | Total
Sales | $ | 6,902 |  |  | $ | 1,762 |  |  | $ | 1,399 |  |  | $ | — |  |  | $ | 10,063 |
Income (loss) from operations | 2,089 |  |  | 690 |  |  | (707 | ) |  | (2,317 | ) |  | (245 | )
Interest expense, net | — |  |  | — |  |  | — |  |  | (37 | ) |  | (37 | )
Change in fair value of derivative liabilities | — |  |  | — |  |  | — |  |  | (683 | ) |  | (683 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |
Depreciation and amortization | — |  |  | — |  |  | — |  |  | 201 |  |  | 201 |
| Nine Months Ended September 30, 2017
(In thousands) | Core |  | OEM |  | Advanced Energy |  | Corporate (Other) |  | Total
Sales | $ | 20,959 |  |  | $ | 2,030 |  |  | $ | 4,546 |  |  | $ | — |  |  | $ | 27,535 |
Income (loss) from operations (1) | 6,471 |  |  | 1,031 |  |  | (3,821 | ) |  | (7,858 | ) |  | (4,177 | )
Interest expense, net | — |  |  | — |  |  | — |  |  | (103 | ) |  | (103 | )
Change in fair value of derivative liabilities | — |  |  | — |  |  | — |  |  | 57 |  |  | 57 |
Income tax expense | — |  |  | — |  |  | — |  |  | 15 |  |  | 15 |
Depreciation and amortization | — |  |  | — |  |  | — |  |  | 527 |  |  | 527 |
| Nine Months Ended September 30, 2016
(In thousands) | Core |  | OEM |  | Advanced Energy |  | Corporate (Other) |  | Total
Sales | $ | 20,261 |  |  | $ | 4,351 |  |  | $ | 2,521 |  |  | $ | — |  |  | $ | 27,133 |
Income (loss) from operations | 5,047 |  |  | 2,498 |  |  | (3,331 | ) |  | (6,962 | ) |  | (2,748 | )
Interest expense, net | — |  |  | — |  |  | — |  |  | (125 | ) |  | (125 | )
Change in fair value of derivative liabilities | — |  |  | — |  |  | — |  |  | (555 | ) |  | (555 | )
Income tax expense | — |  |  | — |  |  | — |  |  | — |  |  | — |
Depreciation and amortization | — |  |  | — |  |  | — |  |  | 355 |  |  | 556 |
(1) | During the first and second quarter of 2017, marketing expenses were considered as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. Beginning with the third quarter of 2017, it was determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the third quarter of 2017 to reflect marketing expense by segment.
We derive revenues from four major product lines: Electrosurgical, Cauteries, Lighting and Other products. We do not review or analyze our four major product lines below net sales. Sales for the product lines are summarized as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2017 |  | 2016 |  | 2017 |  | 2016
Sales by Product Line |  |  |  |  |  |  |
Electrosurgical | $ | 6,205 |  |  | $ | 5,690 |  |  | $ | 17,741 |  |  | $ | 15,020 |
Cauteries | 1,696 |  |  | 1,863 |  |  | 5,224 |  |  | 5,417 |
Lighting | 573 |  |  | 740 |  |  | 1,966 |  |  | 2,046 |
Other | 873 |  |  | 1,770 |  |  | 2,604 |  |  | 4,650 |
Total | $ | 9,347 |  |  | $ | 10,063 |  |  | $ | 27,535 |  |  | $ | 27,133 |
International sales represented approximately 14.6% and 14.0% of total revenues for the three and nine months ended September 30, 2017, respectively, as compared with 13.2% and 14.9% of total revenues for the three and nine months ended September 30, 2016. Substantially all of these sales are denominated in U.S. dollars. Revenue by geographic region, based on the "ship to" location on the invoice are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2017 |  | 2016 |  | 2017 |  | 2016
Sales by Domestic and International |  |  |  |  |  |  |
Domestic | $ | 7,978 |  |  | $ | 8,730 |  |  | $ | 23,678 |  |  | $ | 23,102 |
International | 1,369 |  |  | 1,333 |  |  | 3,857 |  |  | 4,031 |
Total | $ | 9,347 |  |  | $ | 10,063 |  |  | $ | 27,535 |  |  | $ | 27,133 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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