v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting  
Segment Reporting

13.   Segment Reporting. Beginning in the first quarter of 2026, we report our operations as a single operating segment that consists of two product categories: foundational and therapeutic. Foundational products are used primarily for access and enabling functions in vascular and other procedures, and include product platforms such as access devices, procedural solutions, OEM products, and vascular intervention. Therapeutic products are devices and systems used to treat a broad array of diseases, and include product platforms such as cardiac therapies, oncology, renal therapies, vascular intervention, OEM products and endoscopy. See Note 3, Revenue from Contracts with Customers for a detailed breakout of our sales by product category, platform and geography. Our CODM is our Chief Executive Officer, who uses consolidated net income to measure segment profit or loss, assess performance and allocate resources, primarily through periodic budgeting and performance reviews. The CODM does not use asset information to assess performance or allocate resources. All information previously reported by segment has been recast to conform to this single segment conclusion.

The following represents total segment revenue and significant segment expenses for the periods indicated (in thousands):

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Three Months Ended

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Nine Months Ended

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September 30, 

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September 30, 

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2026

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2025

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2026

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2025

Net sales

 

$

416,244

 

$

384,157

 

$

1,216,964

 

$

1,121,970

Cost of sales standard(1)

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160,129

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148,557

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465,654

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443,412

Cost of sales other(2)

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55,484

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49,189

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150,716

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135,640

Selling and marketing expenses

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72,618

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67,335

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221,757

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198,036

General and administrative expenses

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46,893

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52,466

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145,193

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142,348

Research and development expenses

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22,393

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23,966

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70,391

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70,811

Other operating expenses(3)

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(36)

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32

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(70)

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1,198

Other (income) expense — net

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2,978

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4,072

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2,678

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10,648

Income tax expense

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13,474

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10,785

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38,536

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29,394

Net income

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$

42,311

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$

27,755

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$

122,109

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$

90,483

(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 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.

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Depreciation and amortization for the three and nine-month periods ended September 30, 2026 was $31.9 million and $93.4 million, respectively. Depreciation and amortization for the three and nine-month periods ended September 30, 2025 was $31.3 million and $91.6 million, respectively.