Segment Information

6 Months Ended

Jun. 30, 2015

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 audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014.

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 June 30,	Knee		Hip		Biologics & Spine		Extremity		Other			Corporate			Total
2015
Net sales	$	18,957	$	10,944	$	5,873	$	20,479	$	5,240		$	—		$	61,493
Segment profit (loss)	1,281		711		299		4,602		(758		)	(793		)	5,342
Total assets, net	66,031		33,280		23,241		35,440		12,803			103,691			274,486
Capital expenditures	1,134		761		1,059		857		422			220			4,453
Depreciation and Amortization	1,658		720		276		866		128			939			4,587
2014
Net sales	$	21,047	$	11,196	$	6,470	$	19,006	$	6,200		$	—		$	63,919
Segment profit (loss)	1,901		1,169		370		4,639		(1,265		)	(342		)	6,472
Total assets, net	67,635		33,774		24,858		26,990		13,417			95,523			262,197
Capital expenditures	1,128		804		222		1,059		190			1,191			4,594
Depreciation and Amortization	1,881		699		300		519		181			964			4,544
Six Months Ended June 30,	Knee		Hip		Biologics & Spine		Extremity		Other			Corporate			Total
2015
Net sales	$	37,395	$	21,895	$	11,013	$	41,559	$	11,007		$	—		$	122,869
Segment profit (loss)	2,823		1,440		530		9,511		(2,103		)	(1,267		)	10,934
Total assets, net	66,031		33,280		23,241		35,440		12,803			103,691			274,486
Capital expenditures	3,196		1,678		1,125		1,909		660			869			9,437
Depreciation and Amortization	3,708		1,445		559		1,573		266			1,878			9,429
2014
Net sales	$	41,614	$	22,000	$	12,292	$	38,677	$	12,594		$	—		$	127,177
Segment profit (loss)	3,839		2,111		404		9,146		(2,075		)	(349		)	13,076
Total assets, net	67,635		33,774		24,858		26,990		13,417			95,523			262,197
Capital expenditures	2,114		1,512		515		1,978		545			1,582			8,246
Depreciation and Amortization	3,894		1,405		603		1,051		332			1,929			9,214

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

As of:	June 30, 2015						December 31, 2014
	Domestic			International			Domestic			International
Long lived assets, gross	$	143,779		$	51,699		$	144,750		$	43,648
Accumulated depreciation and amortization	(85,843		)	(16,899		)	(82,167		)	(15,580		)
Long lived assets, net	57,936			34,800			62,583			28,068
Inventory	$	53,049		$	35,315		$	57,361		$	32,931

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

Three Months Ended June 30,	2015		2014		% Inc/Decr
Domestic sales	$	41,295	$	42,199	(2.1	)
International sales	20,198		21,720		(7.0	)
Total sales	$	61,493	$	63,919	(3.8	)
Six Months Ended June 30,	2015		2014		% Inc/Decr
Domestic sales	$	82,543	$	83,807	(1.5	)
International sales	40,326		43,370		(7.0	)
Total sales	$	122,869	$	127,177	(3.4	)