Business Segment, Geographic and Concentration Risk Information

12 Months Ended

Dec. 30, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION

19.)BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION

As a result of the Lake Region Medical acquisition and Spin-off, during 2016 the Company reorganized its operations including its internal management and financial reporting structure. As a result of this reorganization, the Company reevaluated and revised its reportable business segments during the fourth quarter of 2016 and began to disclose two reportable segments: (1) Medical and (2) Non-Medical. The two reportable segments, along with their related product lines, are described below:

Medical - includes the (i) Cardio & Vascular product line, which includes introducers, steerable sheaths, guidewires, catheters, and stimulation therapy components, subassemblies and finished devices that deliver therapies for various markets such as coronary and neurovascular disease, peripheral vascular disease, interventional radiology, vascular access, atrial fibrillation, and interventional cardiology, plus products for medical imaging and pharmaceutical delivery; (ii) Cardiac & Neuromodulation product line, which includes batteries, capacitors, filtered and unfiltered feed-throughs, engineered components, implantable stimulation leads, and enclosures used in implantable medical devices; and (iii) Advanced Surgical, Orthopedics & Portable Medical product line, which includes components, sub-assemblies, finished devices, implants, instruments and delivery systems for a range of surgical technologies to the advanced surgical market, including laparoscopy, orthopedics and general surgery, biopsy and drug delivery, joint preservation and reconstruction, arthroscopy, and engineered tubing solutions. Products also include life-saving and life-enhancing applications comprising of automated external defibrillators, portable oxygen concentrators, ventilators, and powered surgical tools.

Non-Medical - includes primary (lithium) cells, and primary and secondary battery packs for applications in the energy, military and environmental markets.

The Company defines segment income from operations as sales less cost of sales including amortization and expenses attributable to segment-specific selling, general, administrative, research, development, engineering and other operating activities. Segment income also includes a portion of non-segment specific selling, general, and administrative expenses based on allocations appropriate to the expense categories. The remaining unallocated operating and other expenses are primarily administrative corporate headquarter expenses and capital costs that are not allocated to reportable segments. Transactions between the two segments are not significant.

An analysis and reconciliation of the Company’s business segments, product lines and geographic information to the respective information in the Consolidated Financial Statements follows. Prior period amounts have been reclassified to conform to the new segment reporting presentation. Sales by geographic area for fiscal years 2016, 2015 and 2014 are presented by allocating sales from external customers based on where the products are shipped (in thousands):

	2016			2015			2014
Segment sales by product line:
Medical
Cardio & Vascular	$	568,510		$	143,260		$	58,770
Cardiac & Neuromodulation	389,403			356,064			330,921
Advanced Surgical, Orthopedics & Portable Medical	392,778			243,385			216,339
Elimination of interproduct line sales	(5,592		)	(1,744		)	—
Total Medical	1,345,099			740,965			606,030
Non-Medical	41,679			59,449			81,757
Total sales	$	1,386,778		$	800,414		$	687,787

	2016			2015			2014
Segment income from operations:
Medical	$	185,448		$	83,784		$	91,677
Non-Medical	1,513			7,289			20,799
Total segment income from operations	186,961			91,073			112,476
Unallocated operating expenses	(78,691		)	(77,927		)	(36,822		)
Operating income	108,270			13,146			75,654
Unallocated expenses, net	(107,085		)	(28,846		)	925
Income (loss) before provision (benefit) for income taxes	$	1,185		$	(15,700	)	$	76,579

(19.)BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued)

	2016		2015		2014
Segment depreciation and amortization:
Medical	$	83,184	$	61,618	$	31,346
Non-Medical	2,346		2,503		2,661
Total depreciation and amortization included in segment income from operations	85,530		64,121		34,007
Unallocated depreciation and amortization	4,994		3,497		3,450
Total depreciation and amortization	$	90,524	$	67,618	$	37,457

	2016		2015		2014
Expenditures for tangible long-lived assets, excluding acquisitions:
Medical	$	44,670	$	40,931	$	19,838
Non-Medical	1,451		600		621
Total reportable segments	46,121		41,531		20,459
Unallocated long-lived tangible assets	8,251		6,523		5,187
Total expenditures	$	54,372	$	48,054	$	25,646

	2016		2015		2014
Sales by geographic area:
United States	$	805,742	$	401,380	$	312,539
Non-Domestic locations:
Puerto Rico	159,243		136,898		127,702
Belgium	69,149		62,546		65,308
Rest of world	352,644		199,590		182,238
Total sales	$	1,386,778	$	800,414	$	687,787

	December 30, 2016		January 1, 2016		January 2, 2015
Identifiable assets:
Medical	$	2,638,180	$	2,766,421	$	763,905
Non-Medical	60,988		66,492		73,849
Total reportable segments	2,699,168		2,832,913		837,754
Unallocated assets	133,375		149,223		117,368
Total assets	$	2,832,543	$	2,982,136	$	955,122

	December 30, 2016		January 1, 2016		January 2, 2015
Long-lived tangible assets by geographic area:
United States	$	258,899	$	264,556	$	113,851
Rest of world	113,143		114,936		31,074
Total	$	372,042	$	379,492	$	144,925

(19.)BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued)

A significant portion of the Company’s sales for fiscal years 2016, 2015 and 2014 and accounts receivable at December 30, 2016 and January 1, 2016 were to four customers as follows:

	Sales						Accounts Receivable
	2016		2015		2014		December 30, 2016		January 1, 2016
Customer A	18	%	17	%	18	%	7	%	8	%
Customer B	17	%	18	%	18	%	20	%	23	%
Customer C	12	%	12	%	12	%	4	%	6	%
Customer D	9	%	5	%	5	%	14	%	7	%
	56	%	52	%	53	%	45	%	44	%