Business segment information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business segment information

10. Business segment information

The Company has four strategic business units (“SBUs”), which are comprised of BioStim, Biologics, Extremity Fixation, and Spine Fixation supported by Corporate activities. The primary metric used in managing the Company is net margin, which is defined as gross profit less sales and marketing expense. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information. Accordingly, our segment information has been prepared based on our four SBUs reporting segments.

The table below presents net sales for continuing operations by SBU reporting segment. Net sales include product sales and marketing service fees. Marketing service fees, which are recorded on a net basis, are comprised of fees earned for the marketing of Trinity Evolution^®, Trinity ELITE^® and Versashield™ in our Biologics segment.

	Net Sales by SBU
	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2015		2014		Reported Increase (Decrease)			Constant Currency Increase (Decrease)
BioStim	$	37,700	$	37,137		2	%		2	%
Biologics		13,961		13,010		7	%		7	%
Extremity Fixation		21,815		27,066		(19	)%		(9	)%
Spine Fixation		16,286		22,801		(29	)%		(28	)%
Total Net Sales	$	89,762	$	100,014		(10	)%		(7	)%

The table below presents net margin, defined as gross profit less sales and marketing expenses from continuing operations by SBU reporting segment:

Net margin by SBU	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2015			2014
Net margin:
BioStim	$	14,013		$	15,020
Biologics		5,944			6,502
Extremity Fixation		7,016			6,933
Spine Fixation		(529	)		4,059
Corporate		(306	)		(444	)
Total net margin		26,138			32,070
General and administrative		21,164			17,276
Research and development		5,845			5,933
Amortization of intangible assets		405			584
Costs related to the accounting review and    restatements		5,916			8,306
Operating loss	$	(7,192	)	$	(29	)