Information as to Reportable Segments and Foreign and Domestic Operations

In accordance with FASB ASC Topic 280, “Segment Reporting,” (“ASC 280”), we have determined our reportable business segments based upon an assessment of product types, organizational structure, customers and internally prepared financial statements. The primary factors used by us in analyzing segment performance are net sales and operating income.

None of our customers accounted for 10% or more of our consolidated net sales during fiscal 2017, 2016 and 2015.

The Company’s reportable segments are as follows:

Endoscopy: designs, develops, manufactures, sells and installs a comprehensive offering of products and services comprising a complete circle of infection prevention solutions. Our products include endoscope reprocessing and endoscopy procedure products.

Water Purification and Filtration: designs, develops, manufactures, sells, and installs water purification systems for medical, pharmaceutical and other bacteria controlled applications. We also provide filtration/separation and disinfectant technologies to the medical and life science markets through a worldwide distributor network.

Two customers, who collectively accounted for approximately 50.2% of our Water Purification and Filtration segment net sales in fiscal 2017.

Healthcare Disposables: designs, manufactures, sells, supplies and distributes a broad selection of infection prevention healthcare products, the majority of which are single-use products used by dental practitioners.

Three customers, who collectively accounted for approximately 43.4% of our Healthcare Disposables segment net sales in fiscal 2017.

Dialysis: designs, develops, manufactures, sells and services reprocessing systems and sterilants for dialyzers (a device serving as an artificial kidney), as well as dialysate concentrates and supplies utilized for renal dialysis.

Two customers collectively accounted for approximately 44.2% of our Dialysis segment net sales in fiscal 2017.

Other: On April 7, 2015, we completed the sale of our Specialty Packaging business and recorded a $2,206 loss associated with this divestiture, which is included in our consolidated statements of income in fiscal 2015. The operating results of the Specialty Packaging business through April 7, 2015 are reported in Other in the tables below. The results were not significant in relation to our overall consolidated operating results and did not have a major effect on our operations and financial results, and accordingly, has not been classified as a discontinued operation for any of the periods presented.

Information as to reportable segments is summarized below:



	Year Ended July 31,
	2017		2016		2015
Net sales:
Endoscopy	$	398,773	$	341,752	$	248,654
Water Purification and Filtration	196,446		177,669		173,834
Healthcare Disposables	144,457		112,584		106,920
Dialysis	30,481		32,750		31,240
Other	—		—		4,356
Total	$	770,157	$	664,755	$	565,004



	Year Ended July 31,
	2017			2016		2015
Operating income:
Endoscopy	$	73,440		$	61,021	$	40,863
Water Purification and Filtration	33,159			30,620		30,606
Healthcare Disposables	28,000			24,486		19,904
Dialysis	8,154			7,907		6,749
Other	—			—		1,118
	142,753			124,034		99,240
General corporate expenses	32,343			26,783		18,479
Income from operations	110,410			97,251		80,761
Interest expense, net	4,303			3,320		2,364
Other income	(126		)	—		—
Loss on sale of business	—			—		2,206
Income before income taxes	$	106,233		$	93,931	$	76,191



	Year Ended July, 31
	2017		2016		2015
Identifiable assets:
Endoscopy	$	368,820	$	347,107	$	238,799
Water Purification and Filtration	147,477		137,731		138,069
Healthcare Disposables	208,328		157,918		145,391
Dialysis	17,211		20,147		26,452
General corporate, including cash and cash equivalents	44,537		31,629		35,320
Total	$	786,373	$	694,532	$	584,031



	Year Ended July, 31
	2017		2016		2015
Capital expenditures:
Endoscopy	$	13,816	$	11,299	$	7,042
Water Purification and Filtration	3,689		3,376		2,984
Healthcare Disposables	2,492		2,606		1,587
Dialysis	1,296		667		894
Other	—		—		19
General corporate	5,772		941		234
Total	$	27,065	18,889		12,760



	Year Ended July, 31
	2017		2016		2015
Depreciation and amortization:
Endoscopy	$	18,245	$	14,333	$	10,729
Water Purification and Filtration	5,706		5,441		5,257
Healthcare Disposables	8,556		4,361		6,354
Dialysis	427		681		1,382
Other	—		—		78
General corporate	518		268		157
Total	$	33,452	$	25,084	$	23,957

Information as to geographic areas (including net sales which represent the geographic area from which the Company derives its net sales from external customers) is summarized below:



	Year Ended July, 31
	2017		2016		2015
Net sales:
United States	$	599,657	$	515,055	$	447,848
Europe/Africa/Middle East	95,753		88,355		62,193
Asia/Pacific	40,964		33,374		28,529
Canada	26,648		20,975		19,306
Latin America/South America	7,135		6,996		7,128
Total	$	770,157	$	664,755	$	565,004



	July 31,
	2017		2016		2015
Total long-lived assets:
United States	$	74,401	$	62,820	$	57,080
Europe/Africa/Middle East	16,209		14,863		9,122
Asia/Pacific	1,381		1,607		1,081
Canada	1,054		463		600
Total	93,045		79,753		67,883
Goodwill and intangible assets, net	435,957		392,037		327,787
Total	$	529,002	$	471,790	$	395,670