Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11. SEGMENT INFORMATION

We evaluate our operating segments by our major product lines: knee implants, hip implants, biologics and spine, extremity implants and other products. The “other products” segment includes miscellaneous sales categories, such as surgical instruments held for sale, bone cement, instrument rental fees, shipping charges, and other implant product lines. Evaluation of the performance of operating segments is based on their respective income from operations before taxes, interest income and expense, and nonrecurring items. Intersegment sales and transfers are not significant. The accounting policies of the reportable segments are the same as those described in Note 2 of the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Total assets not identified with a specific segment are listed as “corporate” and include cash and cash equivalents, accounts receivable, income taxes receivable, deposits and prepaid expenses, deferred tax assets, land, facilities, office furniture and computer equipment, notes receivable, and other investments. Depreciation and amortization on corporate assets is allocated to the product segments for purposes of evaluating the income (loss) from operations, and capitalized surgical instruments are allocated to the appropriate product line supported by those assets.

Total gross assets held outside the United States as of June 30, 2012, was $40.5 million. Included in these assets is $25.3 million in surgical instrumentation, stated gross as it is impracticable to account for depreciation on these assets by region.

Summarized information concerning our reportable segments is shown in the following table (in thousands):

Three Months Ended June 30,	Knee		Hip			Biologics & Spine		Extremity		Other			Corporate			Total
2012
Net sales	$	21,002	$	10,266		$	5,927	$	11,996	$	5,994		$	—		$	55,185
Segment profit (loss)	2,842		421			732		2,310		(996		)	(445		)	4,864
Total assets, net	67,865		31,775			22,557		20,631		6,542			90,212			239,582
Capital expenditures	3,050		653			817		884		137			373			5,914
Depreciation and Amortization	1,729		650			297		373		150			1,035			4,234
2011
Net sales	$	20,700	$	8,391		$	5,963	$	9,655	$	6,973		$	—		$	51,682
Segment profit (loss)	2,362		(58		)	630		1,545		(618		)	119			3,980
Total assets, net	63,743		31,747			22,106		15,479		9,446			96,120			238,641
Capital expenditures	1,340		1,865			132		655		1,034			1,453			6,479
Depreciation and Amortization	1,285		559			257		232		138			1,528			3,999

Six Months Ended June 30,	Knee		Hip		Biologics & Spine		Extremity		Other			Corporate			Total
2012
Net sales	$	42,458	$	21,220	$	12,088	$	24,973	$	13,074		$	—		$	113,813
Segment profit (loss)	5,362		1,250		538		5,291		(1,964		)	(657		)	9,820
Total assets, net	67,865		31,775		22,557		20,631		6,542			90,212			239,582
Capital expenditures	4,802		1,216		1,035		1,897		299			1,637			10,886
Depreciation and Amortization	3,435		1,291		644		721		295			2,065			8,451
2011
Net sales	$	42,038	$	16,403	$	13,008	$	19,094	$	14,508		$	—		$	105,051
Segment profit (loss)	4,545		715		659		3,279		(1,335		)	399			8,262
Total assets, net	63,743		31,747		22,106		15,479		9,446			96,120			238,641
Capital expenditures	4,171		3,095		1,168		1,487		1,498			2,962			14,381
Depreciation and Amortization	2,792		1,067		614		486		248			2,607			7,814

Geographic distribution of our sales is summarized in the following table (in thousands):

Three Months Ended June 30,	2012		2011		% Inc/Decr
Domestic sales	$	35,240	$	32,619	8.0
International sales	19,945		19,063		4.6
Total sales	$	55,185	$	51,682	6.8

Six Months Ended June 30,	2012		2011		% Inc/Decr
Domestic sales	$	72,013	$	67,598	6.5
International sales	41,800		37,453		11.6
Total sales	$	113,813	$	105,051	8.3