Business segment information

3 Months Ended

Mar. 31, 2016

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 March 31,
(U.S. Dollars, in thousands)	2016		2015		Reported Change			Constant Currency Change
BioStim	$	41,044	$	37,700		8.9	%		8.9	%
Biologics		14,094		13,961		1.0	%		1.0	%
Extremity Fixation		24,709		21,815		13.3	%		20.9	%
Spine Fixation		18,832		16,286		15.6	%		15.8	%
Total net sales	$	98,679	$	89,762		9.9	%		11.8	%

The table below presents net margin by SBU reporting segment:

	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2016			2015
BioStim	$	16,411		$	14,013
Biologics		6,104			5,944
Extremity Fixation		7,178			7,016
Spine Fixation		2,336			(529	)
Corporate		(302	)		(306	)
Total net margin		31,727			26,138
General and administrative		16,718			21,569
Research and development		7,636			5,845
Restatements and related costs		245			5,916
Operating income (loss)	$	7,128		$	(7,192	)