Business Segment, Product, and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segment, Product and Geographic Information

10.    Business Segment, Product and Geographic Information

The Company operates in one segment based upon the Company’s organizational structure, the way in which the operations and investments are managed and evaluated by the chief operating decision maker (“CODM”) as well as the lack of availability of discrete financial information at a lower level. The Company’s CODM reviews revenue at the product line offering level, and manufacturing, operating income and expenses, and net income at the Company wide level to allocate resources and assess the Company’s overall performance. The Company shares common, centralized support functions, including finance, human resources, legal, information technology, and corporate marketing, all of which report directly to the CODM. Accordingly, decision-making regarding the Company’s overall operating performance and allocation of Company resources is assessed on a consolidated basis. As such, the Company operates as one reporting segment. The Company has disclosed the revenues for each of its product line offerings to provide the reader of the financial statements transparency into the operations of the Company.

The Company reports under two distinct product lines; spinal hardware and surgical support. The Company’s spinal hardware product line offerings include implants and fixation products, and following the acquisition of Ellipse Technologies, also include the MAGEC- EOS spinal bracing and lengthening system and the PRECICE limb lengthening system. The Company’s surgical support product offerings include IOM services, disposables and biologics, all of which are used to aid spinal surgery.

Revenue by product line was as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Spinal Hardware	$	674,057	$	559,388	$	522,683
Surgical Support		288,015		251,725		239,732
Total Revenue	$	962,072	$	811,113	$	762,415

Revenue and property and equipment, net, by geographic area were as follows (in thousands):

	Revenue						Propertyand Equipment, Net
	Year Ended December 31,						December 31,
	2016		2015		2014		2016		2015
United States	$	831,718	$	714,768	$	667,850	$	148,227	$	113,037
International (excludes Puerto Rico)		130,354		96,345		94,565		33,297		28,404
Total	$	962,072	$	811,113	$	762,415	$	181,524	$	141,441