Business segment information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business segment information

10. Business segment information

The Company has four strategic business units (“SBUs”), which are comprised of BioStim, Biologics, Extremity Fixation, and Spine Fixation supported by corporate activities. The primary metric used in managing the Company is net margin, which is defined as gross profit less sales and marketing expense. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information.

The tables below present net sales for continuing operations by SBU reporting segment. Net sales include product sales and marketing service fees. Marketing service fees, which are recorded on a net basis, are comprised of fees earned for the marketing of Trinity Evolution^®, Trinity ELITE^® and Versashield™ in our Biologics segment.

	Three Months Ended September 30,
(U.S. Dollars, in thousands)	2015		2014		Reported Increase (Decrease)			Constant Currency Increase (Decrease)
BioStim	$	41,559	$	38,285		8.6	%		8.6	%
Biologics		14,639		13,856		5.7	%		5.7	%
Extremity Fixation		24,694		27,636		(10.6	)%		3.4	%
Spine Fixation		20,259		21,217		(4.5	)%		(3.9	)%
Total net sales	$	101,151	$	100,994		0.2	%		4.1	%

	Nine Months Ended September 30,
(U.S. Dollars, in thousands)	2015		2014		Reported Increase (Decrease)			Constant Currency Increase (Decrease)
BioStim	$	119,962	$	114,937		4.4	%		4.4	%
Biologics		43,874		40,718		7.8	%		7.8	%
Extremity Fixation		72,103		82,005		(12.1	)%		2.1	%
Spine Fixation		55,928		64,333		(13.1	)%		(12.6	)%
Total net sales	$	291,867	$	301,993		(3.4	)%		0.6	%

The table below presents net margin by SBU reporting segment:

	Three Months Ended September 30,						Nine Months Ended September 30,
(U.S. Dollars, in thousands)	2015			2014			2015			2014
BioStim	$	16,834		$	16,442		$	47,634		$	49,168
Biologics		6,296			6,504			19,525			19,500
Extremity Fixation		6,442			8,361			22,607			21,952
Spine Fixation		1,938			3,958			4,582			11,147
Corporate		(353	)		(537	)		(955	)		(1,411	)
Total net margin		31,157			34,728			93,393			100,356
General and administrative		19,348			19,322			63,423			55,396
Research and development		6,523			6,572			18,819			18,818
Restatements and related costs		1,147			2,326			9,276			12,959
Operating income	$	4,139		$	6,508		$	1,875		$	13,183