Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customers

Revenue from Contracts with Customers.

We sell our medical products through a direct sales force in the U.S. and through OEM relationships, custom procedure tray manufacturers and a combination of direct sales force and independent distributors in international markets. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps:

Identify the contract with the customer. A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We do not have significant costs to obtain contracts with customers. For commissions on product sales, we have elected the practical expedient to expense the costs as incurred if the amortization period would have been one year or less.

Identify the performance obligations in the contract. Generally, our contracts with customers do not include multiple performance obligations to be completed over a period of time. Our performance obligations generally relate to delivering single-use medical products to a customer, subject to the shipping terms of the contract. Limited warranties are provided, under which we typically accept returns and provide either replacement parts or refunds. We do not have significant returns. We do not typically offer extended warranty or service plans.

Determine the transaction price. Payment by the customer is due under customary fixed payment terms, and we evaluate if collectability is reasonably assured. None of our contracts as of September 30, 2018 contained a significant financing component. Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns, rebates, discounts, and other adjustments. The estimates of variable consideration are based on historical payment experience, historical and projected sales data, and current contract terms. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.

Allocate the transaction price to performance obligations in the contract. We typically do not have multiple performance obligations in our contracts with customers. As such, we recognize revenue upon transfer of the product to the customer's control at contractually stated pricing.

Recognize revenue when or as we satisfy a performance obligation. We satisfy performance obligations at a point in time upon either shipment or delivery of goods, in accordance with the terms of each contract with the customer. We do not have significant service revenue. 

Disaggregation of Revenue

The disaggregation of revenue is based on type of product and geographical region. For descriptions of our product offerings and segments, see Note 12 in our 2017 Form 10-K.

The following tables present revenue from contracts with customers for the three and nine-month periods ended September 30, 2018 and 2017 (in thousands):

	Three Months Ended September 30, 2018						Three Months Ended September 30, 2017
	United States		International		Total		United States		International		Total
Cardiovascular
Stand-alone devices	$	52,173	$	38,802	$	90,975	$	36,383	$	32,366	$	68,749
Custom kits and procedure trays	23,199		9,896		33,095		23,085		7,326		30,411
Inflation devices	7,819		15,074		22,893		8,241		11,792		20,033
Catheters	18,081		22,510		40,591		15,377		16,374		31,751
Embolization devices	5,145		7,250		12,395		5,414		6,838		12,252
CRM/EP	10,462		1,739		12,201		8,202		1,325		9,527
Total	116,879		95,271		212,150		96,702		76,021		172,723
Endoscopy
Endoscopy devices	9,229		280		9,509		6,389		225		6,614
Total	$	126,108	$	95,551	$	221,659	$	103,091	$	76,246	$	179,337

	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017
	United States		International		Total		United States		International		Total
Cardiovascular
Stand-alone devices	$	147,125	$	119,592	$	266,717	$	109,750	$	93,709	$	203,459
Custom kits and procedure trays	69,184		31,175		100,359		68,823		22,259		91,082
Inflation devices	23,647		45,970		69,617		24,257		35,072		59,329
Catheters	50,055		63,775		113,830		46,529		47,828		94,357
Embolization devices	15,272		22,434		37,706		16,548		20,388		36,936
CRM/EP	31,058		5,105		36,163		28,212		3,765		31,977
Total	336,341		288,051		624,392		294,119		223,021		517,140
Endoscopy
Endoscopy devices	24,269		843		25,112		19,195		620		19,815
Total	$	360,610	$	288,894	$	649,504	$	313,314	$	223,641	$	536,955