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Business segment information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Business segment information

12. Business segment information

During the first quarter of 2019, the Company changed its reporting segments from four reporting segments, previously reported as Bone Growth Therapies, Spinal Implants, Biologics, and Orthofix Extremities, to two reporting segments:  Global Spine and Global Extremities. Additionally, the Company changed the performance measure used to evaluate segment performance from Non-GAAP net margin to earnings before interest income (expense), net, income taxes, depreciation and amortization (“EBITDA”). These changes were made to align how the chief operating decision maker manages the business, reviews operating performance and allocates resources. The Company has revised its segment reporting to represent how the business is now managed and restated prior periods to conform to the current segment presentation.

As part of the change in reporting segments, the Company performed a quantitative assessment of goodwill immediately prior to and subsequently following the change in reporting segments. The analysis did not result in an impairment. In addition, the net carrying value of goodwill that was previously reported under the prior reporting segments (i) Bone Growth Therapies (ii) Spinal Implants and (iii) Biologics have been consolidated and are included within the Global Spine reporting segment as of March 31, 2019.

As mentioned above, the primary metric used in managing the Company is EBITDA. The table below presents EBITDA by reporting segment:

		Three Months Ended March 31,
(U.S. Dollars, in thousands)		2019				2018
Global Spine		$	10,575			$	18,825
Global Extremities			(173	)			3,328
Corporate			(9,527	)			(7,002	)
Total EBITDA		$	875			$	15,151
Depreciation and amortization			(5,727	)			(4,369	)
Interest expense, net			(257	)			(183	)
Income (loss) before income taxes		$	(5,109	)		$	10,599

Geographical information

The table below present net sales by geographic destination for each reporting unit and for the consolidated Company:

		Three Months Ended March 31,
(U.S. Dollars, in thousands)		2019				2018
Global Spine
U.S.		$	79,526			$	78,038
International			6,392				3,167
Total Global Spine			85,918				81,205
Global Extremities
U.S.			6,598				6,916
International			16,596				20,588
Total Global Extremities			23,194				27,504
Consolidated
U.S.			86,124				84,954
International			22,988				23,755
Net sales		$	109,112			$	108,709

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- References

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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

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