Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

10. SEGMENT INFORMATION

We evaluate our operating segments by our major product lines: extremity implants, knee implants, hip implants, biologics and spine, 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, 2015.

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 September 30,	Extremity		Knee		Hip		Biologics & Spine			Other			Corporate			Total
2016
Net sales	$	22,776	$	16,980	$	11,590	$	4,359		$	4,214		$	—		$	59,919
Segment profit (loss)		4,663		600		26		(542	)		(158	)		(41	)		4,548
Total assets, net		45,513		73,962		41,541		24,579			9,640			104,837			300,072
Capital expenditures		1,761		481		1,401		539			334			2,655			7,171
Depreciation and Amortization		1,103		1,307		957		381			306			825			4,879
2015
Net sales	$	19,974	$	15,313	$	9,925	$	5,663		$	5,362		$	—		$	56,237
Segment profit (loss)		3,761		521		60		70			130			(357	)		4,185
Total assets, net		37,033		67,479		34,014		22,442			13,220			102,978			277,166
Capital expenditures		1,237		1,380		1,243		70			8			661			4,599
Depreciation and Amortization		620		1,729		629		255			140			1,029			4,402
Nine Months Ended September 30,	Extremity		Knee		Hip		Biologics & Spine			Other			Corporate			Total
2016
Net sales	$	71,160	$	55,557	$	35,302	$	15,186		$	14,136		$	—		$	191,341
Segment profit (loss)		14,700		2,306		565		(85	)		48			99			17,633
Total assets, net		45,513		73,962		41,541		24,579			9,640			104,837			300,072
Capital expenditures		4,374		4,577		3,919		1,031			4,937			6,149			24,987
Depreciation and Amortization		2,542		5,067		2,320		876			675			2,766			14,246
2015
Net sales	$	61,533	$	52,708	$	31,820	$	16,676		$	16,369		$	—		$	179,106
Segment profit (loss)		12,498		2,648		1,093		395			109			(1,624	)		15,119
Total assets, net		37,033		67,479		34,014		22,442			13,220			102,978			277,166
Capital expenditures		3,146		4,576		2,921		1,195			668			1,530			14,036
Depreciation and Amortization		2,193		5,437		2,074		814			406			2,907			13,831

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

As of:	September 30, 2016						December 31, 2015
	Domestic			International			Domestic			International
Long lived assets, gross	$	170,170		$	63,255		$	161,672		$	53,859
Accumulated depreciation and amortization		(91,019	)		(23,982	)		(88,958	)		(19,391	)
Long lived assets, net		79,151			39,273			72,714			34,468
Inventory	$	55,000		$	34,907		$	43,725		$	36,699

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

Three Months Ended September 30,	2016		2015		% Inc/Decr
Domestic sales	$	42,242	$	40,719		3.7
International sales		17,677		15,518		13.9
Total sales	$	59,919	$	56,237		6.5
Nine Months Ended September 30,	2016		2015		% Inc/Decr
Domestic sales	$	131,427	$	123,262		6.6
International sales		59,914		55,844		7.3
Total sales	$	191,341	$	179,106		6.8