SEGMENT AND GEOGRAPHIC INFORMATION

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

Starting in the first quarter of 2015, because of changes in how the Company internally manages and reports the results of its businesses to its chief operating decision maker, the Company is disclosing three global reportable segments. The three global reportable segments and their activities are described below, as follows:

• The Specialty Surgical Solutions segment includes (i) the Neurosurgery business which 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 and (ii) the Instruments business which sells more than 60,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, and dental, podiatry, and veterinary offices.

• The Orthopedics and Tissue Technologies segment 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 Spine segment focuses on spinal fusion, spinal implants, and deformity correction, together with 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. Subsequent to June 30, 2015, this operating segment was eliminated due to the spin-off of the SeaSpine business. Refer to Note 14 - Subsequent Events for additional information.

The most notable change from the Company's financial statements for the year ended December 31, 2014 included in the Annual Report on Form 10-K is the integration of the former International reportable segment into the segments noted above as well as the Private Label segment into Orthopedics and Tissue Technologies and Spine.

The Corporate and other category includes (i) various legal, finance, information systems, executive, and human resource functions, (ii) brand management, and (iii) share-based compensation costs. Prior to the realignment, costs related to procurement, manufacturing operations and logistics for the Company's entire organization were not allocated to operating segments. In connection with the realignment, a portion of these costs have now been incorporated into the disclosed operating segments.

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 three and six months ended June 30, 2015 and 2014 are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015		2014
	(In thousands)
Segment Net Sales
Specialty Surgical Solutions	$	146,709		$	137,516		$	286,769	$	264,710
Orthopedics and Tissue Technologies	63,834			57,954			125,199		112,544
Spine	33,535			35,881			65,775		69,156
Total revenues	$	244,078		$	231,351		$	477,743	$	446,410
Segment Profit
Specialty Surgical Solutions	$	62,325		$	48,991		$	122,657	$	97,288
Orthopedics and Tissue Technologies	18,428			20,019			38,010		37,020
Spine	1,266			4,101			1,578		6,849
Segment profit	82,019			73,111			162,245		141,157
Amortization	(3,104		)	(2,985)			(6,639)		(6,018)
Corporate and other	(64,961		)	(57,734		)	(124,864)		(114,009		)
Operating income	$	13,954		$	12,392		$	30,742	$	21,130

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
United States	$	190,093	$	178,806	$	371,030	$	342,187
Europe	27,497		25,851		54,258		51,176
Rest of World	26,488		26,694		52,455		53,047
Total Revenues	$	244,078	$	231,351	$	477,743	$	446,410