Segment Reporting and Foreign Operations

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting and Foreign Operations

SEGMENT REPORTING AND FOREIGN OPERATIONS

We report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of cardiology and radiology medical device products which assist in diagnosing and treating coronary artery disease, peripheral vascular disease and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management ("CRM"), electrophysiology ("EP"), critical care, Cianna Medical, interventional oncology and spine devices, and breast cancer localization and guidance. Our endoscopy segment consists of gastroenterology and pulmonology medical device products which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. We evaluate the performance of our operating segments based on operating income (loss). See Note 2 for a detailed breakout of our sales by operating segment and product group, disaggregated between domestic and international sales.

During the years ended December 31, 2018, 2017 and 2016, we had international sales of approximately $386.3 million, $307.1 million and $233.5 million, respectively, or approximately 44%, 42% and 39%, respectively, of net sales, primarily in China, Japan, Germany, France, the United Kingdom and Russia. China represents our most significant international sales market with sales of approximately $92.7 million, $73.4 million, and $59.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. International sales are attributed based on location of the customer receiving the product.

Our long-lived assets (which are comprised of our net property, plant and equipment) by geographic area at December 31, 2018, 2017 and 2016, consisted of the following (in thousands):

	2018		2017		2016
United States	$	231,864	$	202,504	$	194,715
Ireland	45,283		45,671		47,337
Other foreign countries	54,305		44,645		34,521
Total	$	331,452	$	292,820	$	276,573

Financial information relating to our reportable operating segments and reconciliations to the consolidated totals for the years ended December 31, 2018, 2017 and 2016, are as follows (in thousands):

	2018			2017		2016
Net Sales
Cardiovascular	$	849,477		$	700,613	$	580,151
Endoscopy	33,276			27,239		23,687
Total net sales	882,753			727,852		603,838
Operating expenses
Cardiovascular	321,461			281,095		218,659
Endoscopy	14,692			12,089		11,490
Total operating expenses	336,153			293,184		230,149
Operating income
Cardiovascular	49,289			24,819		30,053
Endoscopy	9,328			8,250		4,823
Total operating income	58,617			33,069		34,876
Total other income (expense) - net	(9,098		)	2,812		(9,490		)
Income tax expense	7,502			8,358		5,265
Net income	$	42,017		$	27,523	$	20,121

Total assets by business segment at December 31, 2018, 2017 and 2016, consisted of the following (in thousands):

	2018		2017		2016
Cardiovascular	$	1,588,970	$	1,103,806	$	932,927
Endoscopy	31,042		8,005		9,876
Total	$	1,620,012	$	1,111,811	$	942,803

Total depreciation and amortization by business segment for the years ended December 31, 2018, 2017, and 2016 consisted of the following (in thousands):

	2018		2017		2016
Cardiovascular	$	68,722	$	52,700	$	42,806
Endoscopy	824		882		949
Total	$	69,546	$	53,582	$	43,755

Total capital expenditures for property and equipment by business segment for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in thousands):

	2018		2017		2016
Cardiovascular	$	63,032	$	38,437	$	32,613
Endoscopy	292		186		224
Total	$	63,324	$	38,623	$	32,837