<SEC-DOCUMENT>0001564590-17-013344.txt : 20170915
<SEC-HEADER>0001564590-17-013344.hdr.sgml : 20170915
<ACCEPTANCE-DATETIME>20170711181422
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001564590-17-013344
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20170711

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ORTHOFIX INTERNATIONAL N V
		CENTRAL INDEX KEY:			0000884624
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		7 ABRAHAM DE VEERSTRAAT
		STREET 2:		CURACAO
		CITY:			NETHERLANDS ANTILLES
		STATE:			P8
		ZIP:			00000
		BUSINESS PHONE:		214-937-2000

	MAIL ADDRESS:	
		STREET 1:		3451 PLANO PARKWAY
		CITY:			LEWISVILLE
		STATE:			TX
		ZIP:			75056
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-weight:bold;;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><img src="g20170711220124901875.jpg" title="" alt="" style="width:406px;height:64px;"></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-weight:bold;;">&nbsp;</p>
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">July 11, 2017</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">BY EDGAR SUBMISSION</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Mr. Martin James</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Senior Assistant Chief Accountant</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Office of Electronics and Machinery</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Division of Corporation Finance</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Securities and Exchange Commission</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100 F Street, N.E.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Washington, D.C.&nbsp;&nbsp;20549</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;"><font style="font-weight:bold;">Re:Orthofix International N.V.</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Form 10-K for the Fiscal Year Ended December 31, 2016</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Filed February 27, 2017</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">File No. 000-19961</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:23.08%;text-indent:-23.08%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Dear Mr. James:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:7.69%;">Set forth below are the responses of Orthofix International N.V. (the &#8220;<font style="text-decoration:underline;">Company</font>&#8221;) to the Staff&#8217;s letter of comment, dated June 29, 2017 (the &#8220;<font style="text-decoration:underline;">Comment Letter</font>&#8221;), relating to disclosures in the Company&#8217;s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.&nbsp;&nbsp;For convenience of reference, each paragraph below is numbered to correspond to the numbered comment set forth in the Comment Letter.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">Form 10-K for the Fiscal Year Ended December 31, 2016</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">Executive Summary, page 33</p>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;"><font style="font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;">1.</font></p></td>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;letter-spacing:-0.1pt;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">We note that you present Net margin, a non-GAAP measure, as a notable highlight but you do not discuss the most directly comparable GAAP measure. Your presentation appears to give greater prominence to the non-GAAP measure than to the comparable GAAP measure, which is inconsistent with the updated Compliance and Disclosure Interpretations on Non-GAAP Financial Measures issued on May 17, 2016. Please revise your presentation in future filings to comply with that guidance.</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p>
<p style="margin-top:12pt;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;&nbsp;&nbsp;&nbsp; </p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Mr. Martin James</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">July 11, 2017</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 2</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU2"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">Response</font><font style="font-weight:normal;">: </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company respectfully acknowledges the Staff&#8217;s comment and will in future filings, beginning with its Form 10-Q for the quarterly period ended June 30, 2017, revise these disclosures to address the staff&#8217;s comment.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;"><font style="font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;">2. </font></p></td>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;letter-spacing:-0.1pt;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">In future filings revise your presentation of this non-GAAP measure to use a title that is not the same or confusingly similar to one used in GAAP. We note that the term net margin is generally accepted to refer to a profit margin after accounting for all business expenses, such as operating expenses, interest and taxes, which differs from the adjusted gross profit measure you are presenting. Refer to Item 10(e)(1)(ii)(E) of Regulation S-K. </p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">Response<font style="font-weight:normal;">: </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has been reporting the non-GAAP measure that it refers to as &#8220;net margin&#8221; since March 2014, when the Company released its earnings release for the fiscal year ended December 31, 2013.&nbsp;&nbsp;In its original earnings release, furnished pursuant to Item 2.02 of Form 8-K on March 27, 2014, the Company wrote: </p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:15.38%;margin-right:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8220;In 2013, Orthofix redefined its business segments to allow each business unit to focus on distinct attributes and opportunities that maximize their potential, as well as provide greater internal and external transparency. These strategic business units (SBUs) are: BioStim, Biologics, Extremity Fixation and Spine Fixation. To provide greater external transparency into these SBUs, the Company will provide SBU-specific net sales and &#8216;net margin,&#8217; the latter of which is the measure of profit that best reflects the contribution margin of each of the SBUs. The Company calculates net margin as gross profit less sales and marketing expenses.&#8221;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since that original release, the Company has continued to report what it defines as &#8220;net margin&#8221; as a non-GAAP financial measure. Management believes this measure is valuable in assisting investors in understanding the Company&#8217;s overall performance as well as the direct contribution of the Company&#8217;s SBUs, given that sales and marketing expense is generally controlled and managed by the individual SBUs, unlike other operating expenses. To the Company&#8217;s knowledge, every reporting of &#8220;net margin&#8221; by the Company has been coupled with a statement in the text stating that &#8220;net margin&#8221; means gross profit less sales and marketing expenses. Further, to the Company&#8217;s knowledge, all such reportings have been accompanied by appropriate GAAP reconciliations.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company understands that some registrants use the phrase &#8220;net margin&#8221; in earnings releases and certain other disclosures to report net income as a percentage of revenue, and the Company respectfully acknowledges the Staff&#8217;s comment. However, based on discussions with investors and analysts over the 3-1/2 year period that the Company has reported in this manner, the Company believes the definition and terminology it uses is well understood by investors and analysts, provides the most useful insight into the Company&#8217;s and SBU operating performance, and is not causing any confusion with measures used under GAAP.</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Mr. Martin James</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">July 11, 2017</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 3</p>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a><font style="font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has considered its obligations pursuant to Item 10(e)(1)(ii)(E) of Regulation S-K in this regard, and does not believe its use of &#8220;net margin&#8221; as defined by the Company reflects a use, title or description tha</font><font style="font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">t is the same as, or confusingly similar to, any titles or descriptions used for GAAP financial measures (such as revenue, gross profit, operating income, income before income taxes, or net income (loss) from continuing operations (a/k/a net profit).&nbsp;&nbsp;The </font><font style="font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Company has considered several factors in reaching this conclusion:</font></p>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;"><font style="font-family:Times New Roman;">To the Company&#8217;s knowledge, &#8220;net margin&#8221; (unlike gross margin) is not a term used or defined by the Financial Accounting Standards Board in the context of GAAP-based financial statement accounting, nor is it used in financial statements prepared under GAAP.</font></p></td></tr></table></div>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;"><font style="font-family:Times New Roman;">Those registrants that use the phrase &#8220;net margin&#8221; to report net income as a percentage of revenue in earnings releases and similar disclosures report that measure as a percentage, whereas the measure used by the Company is defined in dollar-denominated terms. While the Company also includes corresponding disclosure in certain locations showing this amount as a percentage of revenue, it has always done so in a manner where &#8220;net margin&#8221; is first expressed, defined and shown in dollar-denominated terms. (As noted below, in future filings, the Company will clarify and retitle any resulting percentage-based presentations.) In this context, the Company does not believe that investors reading the Company&#8217;s disclosure are confusing the Company&#8217;s dollar-denominated measure (including resulting percentage/ratio-based calculations using this same amount in the numerator) with the percentage/ratio measure used by some registrants to describe net income as a percentage of revenue. </font></p></td></tr></table></div>
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<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:11.54%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;">&nbsp;</p></td>
<td valign="top" style="width:3.85%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
<td valign="top">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;"><font style="font-family:Times New Roman;">As noted earlier, the Company has consistently and prominently disclosed that its measure of &#8220;net margin&#8221; is a non-GAAP measure, and that it represents gross profit less sales and marketing expense.</font></p></td></tr></table></div>
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<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;">&nbsp;</p></td>
<td valign="top" style="width:3.85%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:'Times New Roman';font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:11pt;"><font style="font-family:Times New Roman;">The Company includes GAAP reconciliations in its disclosures.</font></p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To ensure that persons unfamiliar with the Company&#8217;s historic reporting practice in this regard are not confused, and to ensure that the Company&#8217;s disclosure is not misinterpreted to be a suggestion that the Company&#8217;s definition of &#8220;net margin&#8221; is a GAAP or other generic definition, in future filings (and furnished disclosures), beginning with those for the fiscal quarter ended June 30, 2017, the Company will make clear when it references &#8220;net margin&#8221; that the non-GAAP measure is an internal metric, which the Company defines as gross profit less sales and marketing expense (rather than simply stating that &#8220;net margin&#8221; means gross profit less sales and marketing expense). Further, in future disclosures, the Company will retitle resulting percentage based calculations to make clear that these percentages represent &#8220;&#8216;net margin&#8217; (non-GAAP) as a percentage of revenue&#8221;. The Company believes this approach is consistent with Item 10(e)(1)(ii)(E) of Regulation S-K, and will avoid the potential confusion that may be caused if the Company begins reporting this measure with a different title than the one with which its investors and analysts are currently familiar and that the Company has consistently used in the past.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;&nbsp; </p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Mr. Martin James</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">July 11, 2017</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Page 4</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU4"></a><font style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">Note 15. Bus</font><font style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:12pt;text-transform:none;font-variant: normal;">iness segment information, page F-22 </font></p>
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<td valign="top" style="width:3.85%;white-space:nowrap">
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;"><font style="font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:12pt;font-weight:normal;text-transform:none;font-variant: normal;">3.</font></p></td>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;font-style:italic;letter-spacing:-0.1pt;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Please revise future filings to provide a reconciliation of the total of the reportable segment measures of profits or loss to your consolidated income before taxes and discontinued operations as required by ASC 280-10-50-30.b. </p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">Response<font style="font-weight:normal;">: </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;font-size:11pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company respectfully acknowledges the Staff&#8217;s comment and will in future filings, beginning with its Form 10-Q for the quarterly period ended June 30, 2017, revise these disclosures to address the staff&#8217;s comment.</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If you have any questions or would like further information concerning the foregoing, please do not hesitate to contact the undersigned at (214) 937-2000.&nbsp;&nbsp;Thank you for your assistance.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Sincerely, </p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;">&nbsp;</p>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
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<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">/s/ Doug Rice</p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Doug Rice</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:46.15%;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Chief Financial Officer</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Orthofix International N.V. </p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:7.69%;text-indent:-7.69%;font-family:Times New Roman;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cc:</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Gary Newberry</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Tara Harkins</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Caleb French</p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Geoff Kruczek</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:6pt;font-family:Century Schoolbook;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;&nbsp; </p></body>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
