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Business segment information | 12 Months Ended
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Dec. 31, 2012
Business segment information |
12. |  | Business segment information
The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision making purposes. At this time, the Company’s Chief Operating Decision Maker (the “CODM”) only uses GBU reporting for Sales and Operating Income to assess operating performance. Items below operating income are not considered when measuring the profitability of a segment. Goodwill is also assigned to specific GBUs. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information. On May 24, 2012 as a result of the sale of its sports medicine business, the Company began managing its business by its two GBUs, which are comprised of Spine and Orthopedics supported by Corporate activities and represent the current segments for which the Company’s Chief Operating Decision Maker reviews financial information and makes resource allocation decisions among business units. These segments are discussed below. Spine Spine provides a portfolio of repair and regenerative products that allow physicians to successfully treat a variety of spinal conditions. This global business unit specializes in the design, development and marketing of the Company’s spinal repair products along with regenerative stimulation and biologics products used in spine applications. Spine distributes its products through a network of distributors, sales representatives and affiliates. This global business unit uses both direct and distributor sales representatives to sell spine products to hospitals, doctors and other healthcare providers, globally. Orthopedics Orthopedics provides a portfolio of repair and regenerative products that allow physicians to successfully treat a variety of orthopedic conditions unrelated to spine. This global business unit specializes in the design, development and marketing of the Company’s orthopedic repair products along with regenerative stimulation and biologics products used in orthopedic applications. Orthopedics distributes its products through a network of distributors, sales representatives and affiliates. This global business unit uses both direct and distributor sales representatives to sell orthopedics products to hospitals, doctors, and other healthcare providers globally. Corporate Corporate activities are comprised of the operating expenses of Orthofix International N.V. and its holding company subsidiaries, along with activities not necessarily identifiable within the two GBUs. Business Segments by GBU: The table below presents external net sales for continuing operations by GBU reporting segment. Net sales includes product sales and marketing service fees which is comprised of sales of Trinity Evolution® in spine and orthopedic applications.
|  | External Net Sales by GBU Year ended December 31, |
(US$ in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Net Sales |  |  | Percent of Total Net Sales |  |  | Net Sales |  |  | Percent of Total Net Sales |  |  | Net Sales |  |  | Percent of Total Net Sales |
Spine |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Spine Repair Implants and Regenerative Biologics |  | $ | 147,206 |  |  |  | 32 | % |  | $ | 143,775 |  |  |  | 31 | % |  | $ | 133,831 |  |  |  | 29 | %
Spine Regenerative Stimulation |  |  | 164,688 |  |  |  | 35 | % |  |  | 160,442 |  |  |  | 34 | % |  |  | 172,573 |  |  |  | 38 | %
Total Spine |  |  | 311,894 |  |  |  | 67 | % |  |  | 304,217 |  |  |  | 65 | % |  |  | 306,404 |  |  |  | 67 | %
Orthopedics |  |  | 150,426 |  |  |  | 33 | % |  |  | 165,904 |  |  |  | 35 | % |  |  | 154,225 |  |  |  | 33 | %
Total Net Sales |  | $ | 462,320 |  |  |  | 100 | % |  | $ | 470,121 |  |  |  | 100 | % |  | $ | 460,629 |  |  |  | 100 | %
The table below presents operating income (loss) from continuing operations by GBU reporting segment:
|  | Operating Income (Loss) Year Ended December 31, |
(US$ in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Spine (1) |  | $ | 90,771 |  |  | $ | 46,618 |  |  | $ | 80,688 |
Orthopedics (2) |  |  | 15,280 |  |  |  | 12,368 |  |  |  | 5,878 |
Corporate (3) |  |  | (17,041 | ) |  |  | (27,677 | ) |  |  | (20,316 | )
Total |  | $ | 89,010 |  |  | $ | 31,309 |  |  | $ | 66,250 |
(1) | For 2011, the operating income for the Spine GBU included $42.5 million of expenses in connection with charges related to U.S. Government resolutions.
(2) | For 2011, the operating income for the Orthopedics GBU included $6.5 million of expenses in connection with charges related to U.S. Government resolutions.
(3) | For 2011, the operating loss for the Corporate GBU included $7.5 million of expenses in connection with charges related to U.S. Government inquiries and $3.2 million of senior management succession charges.
The following table presents depreciation and amortization for continuing operations by GBU reporting segment:
|  | Depreciation and amortization by GBU Year Ended December 31, |
(US$ in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Spine |  | $ | 12,152 |  |  | $ | 11,060 |  |  | $ | 9,407 |
Orthopedics |  |  | 5,604 |  |  |  | 5,506 |  |  |  | 6,282 |
Corporate |  |  | 70 |  |  |  | 52 |  |  |  | 126 |
Total |  | $ | 17,826 |  |  | $ | 16,618 |  |  | $ | 15,815 |
Geographical information Analysis of net sales by geographic destination:
(US$ in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
U.S. |  | $ | 341,015 |  |  | $ | 329,625 |  |  | $ | 339,781 |
International: |  |  |  |  |  |  |  |  |  |  |  |
U.K. |  |  | 8,628 |  |  |  | 8,240 |  |  |  | 12,509 |
Italy |  |  | 18,242 |  |  |  | 20,700 |  |  |  | 19,831 |
Brazil |  |  | 38,015 |  |  |  | 48,851 |  |  |  | 29,067 |
Other |  |  | 56,420 |  |  |  | 62,705 |  |  |  | 59,441 |
Total international |  |  | 121,305 |  |  |  | 140,496 |  |  |  | 120,848 |
Total net sales |  | $ | 462,320 |  |  | $ | 470,121 |  |  | $ | 460,629 |
Analysis of property, plant and equipment by geographic area:
(US$ in thousands) |  | 2012 |  |  | 2011 |
U.S. |  | $ | 37,081 |  |  | $ | 30,806 |
Italy |  |  | 7,617 |  |  |  | 7,663 |
U.K. |  |  | 1,402 |  |  |  | 1,449 |
Brazil |  |  | 3,421 |  |  |  | 2,532 |
Others |  |  | 1,841 |  |  |  | 918 |
Total |  | $ | 51,362 |  |  | $ | 43,368 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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