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Business segment information | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Business segment information | 9. Business segment information The Company has four reporting segments: Bone Growth Therapies (formerly referred to as BioStim), Spinal Implants (formerly referred to as Spine Fixation), Biologics, and Orthofix Extremities (formerly referred to as Extremity Fixation).The tables below present net sales, which includes product sales and marketing service fees, by reporting segment:
|  | Three Months Ended September 30, |
(U.S. Dollars, in thousands) |  | 2018 |  |  | 2017 |  |  | Change |
Bone Growth Therapies |  | $ | 48,059 |  |  | $ | 44,427 |  |  |  | 8.2 | %
Spinal Implants |  |  | 22,102 |  |  |  | 20,155 |  |  |  | 9.7 | %
Biologics |  |  | 14,636 |  |  |  | 15,218 |  |  |  | -3.8 | %
Orthofix Extremities |  |  | 26,911 |  |  |  | 25,447 |  |  |  | 5.8 | %
Net sales |  | $ | 111,708 |  |  | $ | 105,247 |  |  |  | 6.1 | %
|  | Nine Months Ended September 30, |
(U.S. Dollars, in thousands) |  | 2018 |  |  | 2017 |  |  | Change |
Bone Growth Therapies |  | $ | 142,433 |  |  | $ | 136,140 |  |  |  | 4.6 | %
Spinal Implants |  |  | 66,689 |  |  |  | 60,782 |  |  |  | 9.7 | %
Biologics |  |  | 43,639 |  |  |  | 45,866 |  |  |  | -4.9 | %
Orthofix Extremities |  |  | 79,203 |  |  |  | 74,139 |  |  |  | 6.8 | %
Net sales |  | $ | 331,964 |  |  | $ | 316,927 |  |  |  | 4.7 | %
The primary metric used in managing the Company is non-GAAP net margin, which is an internal metric that the Company defines as gross profit less sales and marketing expense. The table below presents non-GA AP net margin by reporting segment:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(U.S. Dollars, in thousands) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Bone Growth Therapies |  | $ | 21,151 |  |  | $ | 18,285 |  |  | $ | 61,395 |  |  | $ | 54,887 |
Spinal Implants |  |  | 1,812 |  |  |  | 2,122 |  |  |  | 5,960 |  |  |  | 6,825 |
Biologics |  |  | 6,654 |  |  |  | 6,010 |  |  |  | 18,981 |  |  |  | 18,651 |
Orthofix Extremities |  |  | 8,295 |  |  |  | 7,723 |  |  |  | 23,455 |  |  |  | 20,901 |
Corporate |  |  | (122 | ) |  |  | (103 | ) |  |  | (524 | ) |  |  | (308 | )
Non-GAAP net margin |  | $ | 37,790 |  |  | $ | 34,037 |  |  | $ | 109,267 |  |  | $ | 100,956 |
General and administrative |  |  | 22,705 |  |  |  | 18,068 |  |  |  | 64,457 |  |  |  | 56,759 |
Research and development |  |  | 9,598 |  |  |  | 6,935 |  |  |  | 24,426 |  |  |  | 21,246 |
Changes in fair value of contingent consideration |  |  | 1,580 |  |  |  | — |  |  |  | 2,689 |  |  |  | — |
Operating income |  | $ | 3,907 |  |  | $ | 9,034 |  |  | $ | 17,695 |  |  | $ | 22,951 |
Interest income (expense), net |  |  | (181 | ) |  |  | (15 | ) |  |  | (615 | ) |  |  | 106 |
Other income (expense), net |  |  | (5,054 | ) |  |  | 479 |  |  |  | (5,785 | ) |  |  | (3,284 | )
Income (loss) before income taxes |  | $ | (1,328 | ) |  | $ | 9,498 |  |  | $ | 11,295 |  |  | $ | 19,773 |
Geographical information The table below present net sales by geographic destination for each reporting unit and for the consolidated Company:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(U.S. Dollars, in thousands) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Bone Growth Therapies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 48,039 |  |  | $ | 44,427 |  |  | $ | 142,378 |  |  | $ | 136,128 |
International |  |  | 20 |  |  |  | — |  |  |  | 55 |  |  |  | 12 |
Total Bone Growth Therapies |  |  | 48,059 |  |  |  | 44,427 |  |  |  | 142,433 |  |  |  | 136,140 |
Spinal Implants |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 16,829 |  |  |  | 17,085 |  |  |  | 53,261 |  |  |  | 51,170 |
International |  |  | 5,273 |  |  |  | 3,070 |  |  |  | 13,428 |  |  |  | 9,612 |
Total Spinal Implants |  |  | 22,102 |  |  |  | 20,155 |  |  |  | 66,689 |  |  |  | 60,782 |
Biologics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 14,634 |  |  |  | 15,202 |  |  |  | 43,623 |  |  |  | 45,816 |
International |  |  | 2 |  |  |  | 16 |  |  |  | 16 |  |  |  | 50 |
Total Biologics |  |  | 14,636 |  |  |  | 15,218 |  |  |  | 43,639 |  |  |  | 45,866 |
Orthofix Extremities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 7,254 |  |  |  | 6,804 |  |  |  | 21,193 |  |  |  | 20,124 |
International |  |  | 19,657 |  |  |  | 18,643 |  |  |  | 58,010 |  |  |  | 54,015 |
Total Orthofix Extremities |  |  | 26,911 |  |  |  | 25,447 |  |  |  | 79,203 |  |  |  | 74,139 |
Consolidated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 86,756 |  |  |  | 83,518 |  |  |  | 260,455 |  |  |  | 253,238 |
International |  |  | 24,952 |  |  |  | 21,729 |  |  |  | 71,509 |  |  |  | 63,689 |
Net sales |  | $ | 111,708 |  |  | $ | 105,247 |  |  | $ | 331,964 |  |  | $ | 316,927 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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