Reportable Segments

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.

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 collectively accounted for approximately 53.4% and 46.3% of our Water Purification and Filtration segment net sales for the three months ended October 31, 2017 and 2016, respectively.

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 collectively accounted for approximately 49.1% and 51.6% of our Healthcare Disposables segment net sales for the three months ended October 31, 2017 and 2016, respectively.

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 accounted for approximately 43.1% and 45.5% of our Dialysis segment net sales for the three months ended October 31, 2017 and 2016, respectively.

Information as to reportable segments is summarized below:



	Three Months Ended October 31,
	2017		2016
Net sales:
Endoscopy	$	112,385	$	93,828
Water Purification and Filtration	53,555		49,873
Healthcare Disposables	38,892		36,799
Dialysis	7,934		7,225
Total	$	212,766	$	187,725

None of our customers accounted for 10% or more of our consolidated net sales for the three months ended October 31, 2017 and 2016.



	Three Months Ended October 31,
	2017		2016
Segment operating income:
Endoscopy	$	19,684	$	17,561
Water Purification and Filtration	10,150		8,920
Healthcare Disposables	8,900		7,396
Dialysis	2,099		1,813
	40,833		35,690
General corporate expenses⁽¹⁾	9,199		8,627
Operating income	$	31,634	$	27,063

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(1)	General corporate expenses relate to unallocated corporate costs primarily related to executive management personnel as well as costs associated with certain facets of our acquisition program and being a publicly traded company.