| Segment Reporting |
13. Segment Reporting. We report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of four product categories: peripheral intervention, cardiac intervention, custom procedural solutions, and OEM. Within these product categories, we sell a variety of products, including cardiology and radiology devices (which assist in diagnosing and treating coronary arterial disease, peripheral vascular disease and other non-vascular diseases), as well as embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, breast cancer localization and guidance, biopsy, and interventional oncology and spine devices. Our endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures. Our chief operating decision maker (“CODM”) is our Chief Executive Officer, who uses segment profit or loss to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. See Note 3, Revenues from Contracts with Customers for a detailed breakout of our sales by operating segment and product category, disaggregated between domestic and international sales. Total assets by segment are not used by the CODM to assess performance or allocate resources to the Company’s segments; therefore, total assets by segment are not disclosed. Financial information relating to our reportable operating segments and reconciliations to the consolidated totals for the three and six-month periods ended June 30, 2025 and 2024, were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | | June 30, 2025 | | June 30, 2024 | | | Cardiovascular | | Endoscopy | | Consolidated | | Cardiovascular | | Endoscopy | | Consolidated | Net sales | | $ | 364,025 | | $ | 18,437 | | $ | 382,462 | | $ | 327,815 | | $ | 10,188 | | $ | 338,003 | Cost of sales standard(1) | | | 147,710 | | | 4,342 | | | | | | 140,492 | | | 3,256 | | | | Cost of sales other(2) | | | 43,949 | | | 1,974 | | | | | | 32,828 | | | 327 | | | | Selling, general and administrative expenses | | | 107,673 | | | 5,424 | | | | | | 91,634 | | | 2,951 | | | | Research and development expenses | | | 23,306 | | | 1,061 | | | | | | 19,643 | | | 620 | | | | Other operating expenses(3) | | | 143 | | | — | | | | | | 306 | | | — | | | | | | | | | | | | | | | | | | | | | | | Income from operations | | $ | 41,244 | | $ | 5,636 | | $ | 46,880 | | $ | 42,912 | | $ | 3,034 | | $ | 45,946 | | | | | | | | | | | | | | | | | | | | Total other expense — net | | | | | | | | | (3,501) | | | | | | | | | (103) | | | | | | | | | | | | | | | | | | | | Income before income taxes | | | | | | | | $ | 43,379 | | | | | | | | $ | 45,843 |
| | | | | | | | | | | | | | | | | | | | | Six Months Ended | | Six Months Ended | | | June 30, 2025 | | June 30, 2024 | | | Cardiovascular | | Endoscopy | | Consolidated | | Cardiovascular | | Endoscopy | | Consolidated | Net sales | | $ | 702,738 | | $ | 35,075 | | $ | 737,813 | | $ | 641,189 | | $ | 20,322 | | $ | 661,511 | Cost of sales standard(1) | | | 286,151 | | | 8,705 | | | | | | 273,558 | | | 6,365 | | | | Cost of sales other(2) | | | 81,732 | | | 4,718 | | | | | | 68,130 | | | 643 | | | | Selling, general and administrative expenses | | | 208,647 | | | 11,936 | | | | | | 182,934 | | | 6,079 | | | | Research and development expenses | | | 45,260 | | | 1,585 | | | | | | 40,559 | | | 1,186 | | | | Other operating expenses(3) | | | 1,166 | | | — | | | | | | 189 | | | — | | | | | | | | | | | | | | | | | | | | | | | Income from operations | | $ | 79,782 | | $ | 8,131 | | $ | 87,913 | | $ | 75,819 | | $ | 6,049 | | $ | 81,868 | | | | | | | | | | | | | | | | | | | | Total other expense — net | | | | | | | | | (6,576) | | | | | | | | | (1,677) | | | | | | | | | | | | | | | | | | | | Income before income taxes | | | | | | | | $ | 81,337 | | | | | | | | $ | 80,191 |
| (1) | Cost of sales standard represents costs of goods sold measured at the internal standard cost for production of inventory. Inventory standard costs include material, labor and manufacturing overhead. |
| (2) | Cost of sales other for all segments includes amortization expense associated with our developed technology and license agreement intangible assets, freight and handling associated with shipments to customers, provisions based on estimated excess, slow moving and obsolete inventories, manufacturing and price variances, and royalties. |
| (3) | Other operating expenses include contingent consideration expense (benefit) related to the changes in fair value of contingent payments associated with acquisitions. |
Total depreciation and amortization by operating segment for the three and six-month periods ended June 30, 2025 and 2024, consisted of the following (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Cardiovascular | | $ | 28,767 | | $ | 23,964 | | $ | 55,737 | | $ | 47,352 | Endoscopy | | | 2,254 | | | 127 | | | 4,576 | | | 338 | Total | | $ | 31,021 | | $ | 24,091 | | $ | 60,313 | | $ | 47,690 |
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