Segment and Geographic Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic InformationWe have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of aortic stent grafts, surgical sealants, On-X, and other product revenues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita Open NEO, E-vita Open Plus, AMDS, NEXUS, E-vita Thoracic 3G, and E-nya products. Abdominal stent grafts include our E-xtra Design Engineering, E-nside, E-tegra, E-ventus BX, and E-liac products. Surgical sealants include BioGlue Surgical Adhesive products. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues.

The primary measure of segment performance, as viewed by our management, is segment gross margin, or net external revenues less cost of products and preservation services. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.

The following table summarizes revenues, cost of products and preservation services, and gross margins for our reportable segments (in thousands):

	2022		2021		2020
Revenues:
Medical devices	$	230,353	$	221,597	$	179,299
Preservation services	83,436		77,239		73,928
Total revenues	313,789		298,836		253,227
Cost of products and preservation services:
Medical devices	72,166		65,196		50,128
Preservation services	39,100		36,126		35,315
Total cost of products and preservation services	111,266		101,322		85,443
Gross margin:
Medical devices	158,187		156,401		129,171
Preservation services	44,336		41,113		38,613
Total gross margin	$	202,523	$	197,514	$	167,784

Net revenues by product for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands):

	2022		2021		2020
Products:
Aortic stent grafts	$	92,752	$	85,387	$	61,663
Surgical sealants	65,379		70,714		62,068
On-X	63,904		57,363		48,053
Other	8,318		8,133		7,515
Total products	230,353		221,597		179,299
Preservation services:	83,436		77,239		73,928
Total revenues	$	313,789	$	298,836	$	253,227

Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2022, 2021, and 2020 were as follows (in thousands):

	2022		2021		2020
US	$	161,113	$	151,151	$	138,274
International	152,676		147,685		114,953
Total revenues	$	313,789	$	298,836	$	253,227

Revenues attributed to customers in Germany accounted for 9% of total revenues for the year ended December 31, 2022 and 10% for the years ended December 31, 2021 and 2020.

At December 31, 2022 and 2021 46% and 45% of our long-lived assets were held in the US, respectively, where the corporate headquarters and a portion of our manufacturing facilities are located. Our long-lived international assets were $20.7 million and $20.6 million as of December 31, 2022 and 2021, respectively, of which 97% were located in Hechingen, Germany. At December 31, 2022 and 2021, $243.6 million and $250.0 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.