SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

Starting in the first quarter of 2012, because of changes in how the Company internally manages and reports the results of its businesses to its chief operating decision maker, the Company began reporting five reportable segments. The five reportable segments are U.S. Neurosurgery, U.S. Instruments, U.S. Extremities, U.S. Spine and Other, and International. The U.S. Neurosurgery segment sells a full line of products specifically for neurosurgery and critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment. The U.S. Instruments business sells more than 60,000 instrument patterns and surgical products and lighting to hospitals, surgery centers, and dental, podiatry, and veterinary offices. The U.S. Extremities segment includes the U.S. extremity reconstruction business, which includes such offerings as skin and wound repair, bone and joint fixation, implants in the upper and lower extremities, bone grafts and nerve and tendon repair. The U.S. Spine and Other segment includes (i) the U.S. Spine business, which focuses on spinal fusion, spinal implants, and deformity correction, (ii) the U.S. Orthobiologics business, which focuses on bone graft substitutes and other related medical devices that are used to enhance the repair and regeneration of bone in various types of orthopedic surgical procedures, and (iii) the Private Label business, which sells the Company’s regenerative medicine and other products to strategic partners. The International segment sells similar products to those discussed above, but are managed through the following geographies: (i) Europe, Middle East and Africa, and (ii) Central/South America, Asia-Pacific and Canada. The Corporate and other category includes (i) various legal, finance, executive, and human resource functions, (ii) brand management, (iii) share-based compensation costs, and (iv) costs related to procurement, manufacturing operations and logistics for the Company’s entire organization. Accordingly, the segment information for the prior years has been restated in accordance with authoritative guidance on segment reporting. The accounting policies of the reportable segments are the same as those described in Note 2.

None of the Company's customers accounted for 10% or more of the consolidated net sales during our year ended December 31, 2012, 2011 and 2010.

The operating results of the various reportable segments as presented are not comparable to one another because (i) certain operating segments are more dependent than others on corporate functions for unallocated general and administrative and/or operational manufacturing functions, and (ii) the Company does not allocate certain manufacturing costs and general and administrative costs to the operating segment results.

Net sales and profit by reportable segment for the year ended December 31, 2012, 2011 and 2010 are as follows:

	Years Ended December 31,
	2012			2011			2010
	(In thousands)
Segment Net Sales
U.S. Neurosurgery	$	171,278		$	165,652		$	165,606
U.S. Instruments	162,323			155,833			157,853
U.S. Extremities	122,847			98,109			89,529
U.S. Spine and Other	190,546			174,479			152,274
International	183,877			186,005			166,806
Total revenues	$	830,871		$	780,078		$	732,068
Segment Profit
U.S. Neurosurgery	$	91,070		$	86,206		$	83,804
U.S. Instruments	36,550			29,753			27,350
U.S. Extremities	49,432			38,540			39,347
U.S. Spine and Other	55,891			51,011			57,643
International	61,336			64,164			59,636
Segment profit	294,279			269,674			267,780
Amortization	(18,536)			(16,433)			(12,017)
Corporate and other	(201,961		)	(198,329		)	(157,069		)
Operating income	$	73,782		$	54,912		$	98,694

The Company does not allocate any assets to the reportable segments, and, therefore, no asset information is reported to the chief operating decision maker and disclosed in the financial information for each segment.

Revenue by major product category consisted of the following:

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Orthopedics	$	369,312	$	328,933	$	290,274
Neurosurgery	277,527		272,538		263,147
Instruments	184,032		178,607		178,647
Total Revenues	$	830,871	$	780,078	$	732,068

The Company attributes revenue to geographic areas based on the location of the customer. There are certain revenues managed by the various U.S. segments above that are generated from non-U.S. customers and therefore included in Europe and the Rest of World revenues below.

Total revenue, net and long-lived assets (tangible) by major geographic area are summarized below:

	United States*		Europe		Rest of the World		Consolidated
	(In thousands)
Total revenue, net:
2012	$	642,830	$	90,920	$	97,121	$	830,871
2011	589,946		97,184		92,948		780,078
2010	561,307		89,044		81,717		732,068
Total long-lived assets:
2012	$	166,508	$	20,242	$	1,507	$	188,257
2011	125,880		17,274		1,357		144,511

* Includes long-lived assets in Puerto Rico.