Segment information

3 Months Ended

Apr. 01, 2018

Segment Reporting [Abstract]

Segment information

Note 14 — Segment information

Following the Company's acquisition of Vascular Solutions, the Company commenced an integration program under which it is combining the Vascular Solutions' business with some of its legacy businesses. As a result, effective during the fourth quarter 2017, the Company realigned its operating segments. The changes to the operating segments were also made to reflect the manner in which the Company’s chief operating decision maker assesses business performance and allocates resources. The Company now has the following seven reportable segments: Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Europe, Middle East and Africa ("EMEA"), Asia and Original Equipment and Development Services ("OEM"). In connection with the presentation of segment information, the Company will continue to present certain operating segments, which currently include the Interventional Urology North America, Respiratory North America and Latin America operating segments, in the “all other” category because they are not material. All prior comparative periods presented have been restated to reflect these changes.

The following tables present the Company’s segment results for the three months ended April 1, 2018 and April 2, 2017:

	Three Months Ended
	April 1, 2018		April 2, 2017
	(Dollars in thousands)
Vascular North America	$	83,048	$	79,011
Interventional North America	60,196		39,946
Anesthesia North America	50,565		48,207
Surgical North America	40,677		45,944
EMEA	159,870		133,574
Asia	58,244		50,168
OEM	45,854		43,346
All other	88,776		47,685
Net revenues	$	587,230	$	487,881

	Three Months Ended
	April 1, 2018			April 2, 2017
	(Dollars in thousands)
Vascular North America	$	24,662		$	18,290
Interventional North America	14,120			(8,035		)
Anesthesia North America	17,333			13,304
Surgical North America	14,748			16,380
EMEA	31,770			21,310
Asia	13,368			10,884
OEM	9,016			9,121
All other	(11,973		)	9,327
Total segment operating profit (1)	113,044			90,581
Unallocated expenses (2)	(26,201		)	(29,762		)
Income from continuing operations before interest, loss on extinguishment of debt and taxes	$	86,843		$	60,819

(1) Segment operating profit includes segment net revenues from external customers reduced by the segment's standard cost of goods sold, adjusted for fixed manufacturing cost absorption variances, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses. Corporate expenses are allocated among the segments in proportion to the respective amounts of one of several items (such as net revenues, numbers of employees, and amount of time spent), depending on the category of expense involved.

(2) Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances, restructuring charges and gain on sale of assets.

The following table provides total net revenues by geographic region (based on the Company's selling location) for the three months ended April 1, 2018 and April 2, 2017:

	Three Months Ended
	April 1, 2018		April 2, 2017
	(Dollars in thousands)
United States	$	344,357	$	286,314
Europe	171,320		141,022
Asia	49,555		43,004
All other	21,998		17,541
Net revenues	$	587,230	$	487,881