Note 11 - Business Segments and Geographic Areas

6 Months Ended

Jun. 30, 2011

Note 11 - Business Segments and Geographic Areas

Segment Reporting Disclosure [Text Block]

Note 11 — Business Segments and Geographic Areas

CONMED conducts its business through five principal operating segments, CONMED Endoscopic Technologies, CONMED Endosurgery, CONMED Electrosurgery, CONMED Linvatec and CONMED Patient Care.  We believe each of our segments are similar in the nature of their products, production processes, customer base, distribution methods and regulatory environment.  Our CONMED Endosurgery, CONMED Electrosurgery and CONMED Linvatec operating segments also have similar economic characteristics and therefore qualify for aggregation.  Our CONMED Patient Care and CONMED Endoscopic Technologies operating units do not qualify for aggregation since their economic characteristics do not meet the criteria for aggregation as a result of the lower overall operating margin in these segments.

CONMED Endosurgery, CONMED Electrosurgery and CONMED Linvatec consist of a single aggregated segment comprising a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic procedures, electrosurgical generators and related surgical instruments, arthroscopic instrumentation for use in orthopedic surgery and small bone, large bone and specialty powered surgical instruments.  CONMED Patient Care product offerings include a line of vital signs and cardiac monitoring products as well as suction instruments & tubing for use in the operating room.  CONMED Endoscopic Technologies product offerings include a comprehensive line of minimally invasive endoscopic diagnostic and therapeutic instruments used in procedures which require examination of the digestive tract.

The following is net sales information by product line and reportable segment:

	Three months ended				Six months ended
	June 30,				June 30,
	2010		2011		2010		2011
Arthroscopy		74,821		70,646		147,075		146,065
Powered Surgical Instruments		35,769		38,255		70,758		76,291
CONMED Linvatec		110,590		108,901		217,833		222,356
CONMED Electrosurgery		23,965		26,053		47,048		49,625
CONMED Endosurgery		17,143		19,133		34,223		37,031
CONMED Linvatec, Endosurgery,
and Electrosurgery		151,698		154,087		299,104		309,012
CONMED Patient Care		17,461		16,636		34,620		33,260
CONMED Endoscopic Technologies		11,927		12,513		23,727		24,414
Total	$	181,086	$	183,236	$	357,451	$	366,686

   Total assets, capital expenditures, depreciation and amortization information are impracticable to present by reportable segment because the necessary information is not available.

The following is a reconciliation between segment operating income and income before income taxes:

	Three months ended						Six months ended
	June 30,						June 30,
	2010			2011			2010			2011
CONMED Endosurgery, Electrosurgeryand Linvatec	$	21,271		$	20,529		$	38,527		$	44,804
CONMED Patient Care		1,200			(999	)		1,546			(1,735	)
CONMED Endoscopic Technologies		(237	)		355			(38	)		165
Corporate		(7,456	)		(3,187	)		(11,696	)		(9,273	)
Income from Operations		14,778			16,698			28,339			33,961
Loss on early extinguishment
of debt		79			-			79			-
Amortization of debt discount		1,056			1,113			2,108			2,207
Interest expense		1,771			1,707			3,520			3,512
Income before income taxes	$	11,872		$	13,878		$	22,632		$	28,242