Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

10. 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 incomes 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, 2013.

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.

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

Three Months Ended March 31,	Knee		Hip		Biologics & Spine		Extremity		Other			Corporate			Total
2014
Net sales	$	20,567	$	10,804	$	5,822	$	19,671	$	6,394		$	—		$	63,258
Segment profit (loss)	1,938		942		34		4,507		(810		)	(7		)	6,604
Total assets, net	65,804		31,427		24,719		25,488		13,960			94,353			255,751
Capital expenditures	986		708		293		919		355			391			3,652
Depreciation and Amortization	2,013		706		303		532		151			965			4,670
2013
Net sales	$	20,502	$	10,440	$	6,057	$	15,683	$	6,619		$	—		$	59,301
Segment profit (loss)	1,910		844		194		3,729		(611		)	(715		)	5,351
Total assets, net	69,604		34,679		25,725		22,681		4,154			92,979			249,822
Capital expenditures	3,199		552		32		434		127			1,119			5,463
Depreciation and Amortization	1,894		676		337		428		116			1,084			4,535

Geographic distribution of our long-lived assets and inventory is shown in the following table (in thousands):

As of:	March 31, 2014						December 31, 2013
	Domestic			International			Domestic			International
Long lived assets, gross	$	141,499		$	43,183		$	139,406		$	41,857
Accumulated depreciation and amortization	(77,162		)	(14,818		)	(73,876		)	(13,588		)
Long lived assets, net	64,337			28,365			65,530			28,269
Inventory	$	57,854		$	25,975		$	56,960		$	25,730

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

Three Months Ended March 31,	2014		2013		% Inc/Decr
Domestic sales	$	41,608	$	38,965	6.8
International sales	21,650		20,336		6.5
Total sales	$	63,258	$	59,301	6.7