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Business segment information
 9 Months Ended
Sep. 30, 2012
Business segment information

13. Business segment information

The Company’s segment information (as provided below) has been prepared based on the Company’s two GBU reporting segments, Spine and Orthopedics. The accounting policies of the segments are the same as those described in the business segment information found in Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2011.

The tables below present external net sales for continuing operations by GBU reporting segment:

 

     External Net Sales by GBU  
     Three Months Ended September 30,  

(US$ in thousands)

    2012      2011      Reported
Growth		     Constant
Currency
Growth		  

Spine

           

Spine Repair Implants and Regenerative Biologics

    $ 36,634       $ 36,769         —   %      —   % 

Spine Regenerative Stimulation

      42,759         39,734         8 %      8 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Spine

      79,393         76,503         4 %      4 % 

Orthopedics

      35,359         40,803         (13 )%      (4 )% 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Net Sales

    $ 114,752       $ 117,306         (2 )%      1 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

     External Net Sales by GBU  
     Nine Months Ended September 30,  

(US$ in thousands)

    2012      2011      Reported
Growth		     Constant
Currency
Growth		  

Spine

           

Spine Repair Implants and Regenerative Biologics

    $ 110,892       $ 107,608         3 %      3 % 

Spine Regenerative Stimulation

      125,325         118,012         6 %      6 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Spine

      236,217         225,620         5 %      5 % 

Orthopedics

      114,069         121,416         (6 )%      1 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Net Sales

    $ 350,286       $ 347,036         1 %      3 % 
  

 

 

     

 

 

     

 

 

    

 

 

  

 

The table below presents operating income (loss) for continuing operations by GBU reporting segment:

 

Operating Income (Loss) by GBU    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  

(US$ in thousands)

    2012     2011     2012     2011  

Spine (1)

    $ 22,615      $ 22,373      $ 65,209      $ 28,239   

Orthopedics (2)

      3,274        4,501        12,347        5,842   

Corporate (3)

      (4,356 )      (3,275 )      (13,027 )      (18,583 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 21,533      $ 23,599      $ 64,529      $ 15,498   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) For the nine months ended September 30, 2012 and 2011, the operating income for the Spine GBU included $1.5 million and $36.5 million, respectively, of expenses in connection with charges related to U.S. Government resolutions. For the nine months ended September 30, 2012, the operating income for the Spine GBU included a $3.1 million charge for an arbitration resolution related to a 2008 co-development agreement and a $2.3 million charge for costs related the Company’s strategic investment with MTF.
(2) For the nine months ended September 30, 2012 and 2011, the operating income for the Orthopedics GBU included $0.2 million and $6.5 million, respectively, of expenses in connection with charges related to U.S. Government resolutions. For the nine and three months ended September 30, 2012, the operating income for the Orthopedics GBU included a $0.7 million and $0.5 million charge, respectively, of costs related the Company’s strategic investment with MTF.
(3) For the nine months ended September 30, 2011, the operating loss for the Corporate GBU included $3 million of expenses in connection with charges related to U.S. Government resolutions and $3.2 million of senior management succession charges.