Business segment information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Business segment information

8. Business segment information

The table below present net sales, which includes product sales and marketing service fees, by reporting segment:

	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2017		2016		Change
BioStim	$	44,539	$	41,044		8.5	%
Biologics		14,987		14,094		6.3	%
Extremity Fixation		23,945		24,709		-3.1	%
Spine Fixation		19,267		18,832		2.3	%
Net sales	$	102,738	$	98,679		4.1	%

The primary metric used in managing the Company is net margin, which the Company defines as gross profit less sales and marketing expense. The table below presents net margin by reporting segment:

	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2017			2016
BioStim	$	17,133		$	16,408
Biologics		6,171			6,104
Extremity Fixation		6,412			7,175
Spine Fixation		2,007			2,335
Corporate		(98	)		(302	)
Net margin	$	31,625		$	31,720
General and administrative		18,282			17,005
Research and development		7,424			7,640
Operating income	$	5,919		$	7,075