MERIT MEDICAL SYSTEMS INC Segments Disclosure
13.SEGMENT REPORTING AND FOREIGN OPERATIONS
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 caused by malignant tumors. Our chief operating decision maker is our Chief Executive Officer. Our CODM uses segment profit or loss to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. See Note 2, Revenues to our consolidated financial statements set forth in Item 8 of this report 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.
During the years ended December 31, 2025, 2024 and 2023, we had international sales of $606.4 million, $555.7 million and $530.4 million, respectively, or 40.0%, 41.0% and 42.2%, respectively, of net sales. Our largest international markets include China, Japan, Germany, France and the United Kingdom. International sales are attributed based on location of the customer receiving the product.
Our long-lived assets (which are comprised of our net property and equipment) by geographic area at December 31, 2025, 2024 and 2023, consisted of the following (in thousands):
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 | ||||
United States | $ | 300,593 | $ | 271,734 | $ | 273,105 | |||
Ireland |
| 49,492 |
| 45,325 |
| 42,333 | |||
Other foreign countries |
| 78,316 |
| 69,106 |
| 68,085 | |||
Total | $ | 428,401 | $ | 386,165 | $ | 383,523 | |||
Financial information relating to our reportable operating segments and reconciliations to the consolidated totals for the years ended December 31, 2025, 2024 and 2023, are as follows (in thousands):
2025 | 2024 | 2023 | |||||||||||||||||||||||||
| Cardiovascular | | Endoscopy | | Consolidated | | Cardiovascular | | Endoscopy | | Consolidated | | Cardiovascular | | Endoscopy | | Consolidated | ||||||||||
Net sales |
| $ | 1,443,042 |
| $ | 72,864 |
| $ | 1,515,906 |
| $ | 1,301,744 | $ | 54,770 |
| $ | 1,356,514 |
| $ | 1,220,560 |
| $ | 36,806 |
| $ | 1,257,366 | |
Cost of sales standard(1) | 576,864 | 18,067 | 549,657 | 15,746 | 534,826 | 12,987 | |||||||||||||||||||||
Cost of sales other(2) |
| 173,686 |
| 9,019 |
|
| 140,948 |
| 6,830 |
|
| 125,388 |
| 293 |
| ||||||||||||
Selling, general and administrative expenses |
| 431,252 |
| 23,962 |
|
| 376,734 |
| 22,997 |
|
| 362,082 |
| 11,594 |
| ||||||||||||
Research and development expenses | 94,157 | 3,195 | 83,812 | 3,654 | 80,300 | 2,428 | |||||||||||||||||||||
Other operating expenses(3) | 950 | 34 | 443 | — | 3,524 | — | |||||||||||||||||||||
Income from operations | $ | 166,133 | $ | 18,587 | $ | 184,720 | $ | 150,150 | $ | 5,543 | $ | 155,693 | $ | 114,440 | $ | 9,504 | $ | 123,944 | |||||||||
Total other expense — net | (13,783) | (5,700) | (11,855) | ||||||||||||||||||||||||
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Income before income taxes |
| $ | 170,937 |
| $ | 149,993 |
| $ | 112,089 | ||||||||||||||||||
| (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 include 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 impairment charges, contingent consideration expense related to the changes in fair value of contingent payments associated with acquisitions, and acquired in-process research and development expense. |
Total depreciation and amortization by operating segment for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands):
2025 | | 2024 | | 2023 | ||||
Cardiovascular | $ | 113,785 | $ | 97,749 | $ | 88,960 | ||
Endoscopy |
| 9,383 |
| 4,960 |
| 1,025 | ||
Total | $ | 123,168 | $ | 102,709 | $ | 89,985 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.