BUSINESS SEGMENT

9 Months Ended

Sep. 30, 2017

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. We have one operating and reporting segment, OrthoPediatrics Corp., which designs, develops and markets anatomically appropriate implants and devices for children with orthopedic problems. Our chief operating decision-maker, our Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance, accompanied by disaggregated revenue information by product category. We do not assess the performance of our individual product categories on measures of profit or loss, or other asset-based metrics. Therefore, the information below is presented only for revenue by category and geography.

Product sales attributed to a country or region includes product sales to hospitals, physicians and distributors and is based on the final destination where the products are sold. No individual customer accounted for more than 10% of total product sales for any of the periods presented. No customer accounted for more than 10% of consolidated accounts receivable as of September 30, 2017 and December 31, 2016.

Product sales by source were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
Product sales by geographic location:	2017		2016		2017		2016
U.S.	$	9,556	$	7,875	$	26,085	$	21,565
International	2,819		2,260		7,854		6,315
Total	$	12,375	$	10,135	$	33,939	$	27,880



	Three Months Ended September 30,				Nine Months Ended September 30,
Product sales by category:	2017		2016		2017		2016
Trauma and deformity	$	8,730	$	7,168	$	24,339	$	20,184
Spine	3,299		2,729		8,652		6,940
ACL reconstruction/other	346		238		948		756
Total	$	12,375	$	10,135	$	33,939	$	27,880

No individual country with sales originating outside of the United States accounted for more than 10% of consolidated revenue for the three or nine months ended September 30, 2017 and 2016.