Reportable Segments

In accordance with 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 income from operations.

None of our customers accounted for 10% or more of our consolidated net sales during fiscal 2018, 2017 and 2016.

Our 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 48.0%, 50.2% and 43.7% of our Water Purification and Filtration segment net sales in fiscal 2018, 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 45.1% and 43.4% of our Healthcare Disposables segment net sales in fiscal 2018 and 2017, respectively. Four customers collectively accounted for approximately 49.1% in fiscal 2016.

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 40.6%, 44.2% and 42.6% of our Dialysis segment net sales in fiscal 2018, 2017 and 2016, respectively. These customers are the same two customers noted above under our Water Purification and Filtration segment.

Information as to reportable segments is summarized below:



	Year Ended July 31,
	2018		2017		2016
Net sales:
Endoscopy	$	473,937	$	398,773	$	341,752
Water Purification and Filtration	211,209		196,446		177,669
Healthcare Disposables	155,180		144,457		112,584
Dialysis	31,596		30,481		32,750
Total	$	871,922	$	770,157	$	664,755



	Year Ended July 31,
	2018			2017			2016
Income from operations:
Endoscopy	$	86,833		$	73,440		$	61,021
Water Purification and Filtration	35,100			33,159			30,620
Healthcare Disposables	31,707			28,000			24,486
Dialysis	7,380			8,154			7,907
	161,020			142,753			124,034
General corporate expenses	39,356			32,343			26,783
Income from operations	121,664			110,410			97,251
Interest expense, net	5,289			4,303			3,320
Other income	(1,138		)	(126		)	—
Income before income taxes	$	117,513		$	106,233		$	93,931



	July, 31
	2018		2017		2016
Identifiable assets:
Endoscopy	$	490,702	$	368,820	$	347,107
Water Purification and Filtration	151,460		147,477		137,731
Healthcare Disposables	210,831		208,328		157,918
Dialysis	22,614		17,211		20,147
General corporate, including cash and cash equivalents	88,101		44,537		31,629
Total	$	963,708	$	786,373	$	694,532



	Year Ended July, 31
	2018		2017		2016
Capital expenditures:
Endoscopy	$	18,996	$	13,816	$	11,299
Water Purification and Filtration	4,409		3,689		3,376
Healthcare Disposables	2,441		2,492		2,606
Dialysis	644		1,296		667
General corporate	11,208		5,772		941
Total	$	37,698	27,065		18,889



	Year Ended July, 31
	2018		2017		2016
Depreciation and amortization:
Endoscopy	$	19,002	$	18,245	$	14,333
Water Purification and Filtration	5,628		5,706		5,441
Healthcare Disposables	8,756		8,556		4,361
Dialysis	711		427		681
General corporate	733		518		268
Total	$	34,830	$	33,452	$	25,084

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



	Year Ended July, 31
	2018		2017		2016
Net sales:
United States	$	643,744	$	599,657	$	515,055
Europe/Africa/Middle East	131,130		95,753		88,355
Asia/Pacific	57,108		40,964		33,374
Canada	33,524		26,648		20,975
Latin America/South America	6,416		7,135		6,996
Total	$	871,922	$	770,157	$	664,755



	July 31,
	2018		2017		2016
Total long-lived assets:
United States	$	80,918	$	74,401	$	62,820
Europe/Africa/Middle East	35,824		16,209		14,863
Asia/Pacific	2,531		1,381		1,607
Canada	804		1,054		463
Total	120,077		93,045		79,753
Goodwill and intangible assets, net	505,388		435,957		392,037
Total	$	625,465	$	529,002	$	471,790