v3.25.1
SEGMENT AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2025
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]  
Segment And Geographic Information NOTE 18. SEGMENT AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Daniel T. Scavilla, Chief Executive Officer, is identified as the CODM who determines resource allocation, investing activities, and performance assessment. The CODM uses revenue, gross profit and operating income to assess financial performance of the segments and make key operating decisions. Our CODM does not evaluate operating segments using asset or liability information.

The Company identified two operating segments, Musculoskeletal Solutions and Enabling Technologies, based on the overall management structure and business strategy. The Company aggregates these operating segments into one reportable segment, based on conclusions reached after considering relevant factors such as economic similarity, customer base, regulatory environment, production processes, nature of services and products provided, and our comprehensive approach to product development and offerings targeting patient needs through procedural-based solutions.

The following table represents total segment revenue, significant segments expenses and other expenses for the three months ended March 31, 2025, and 2024, respectively:

Three Months Ended

March 31,

2025

2024

Net Sales

$

598,121

$

606,666

Less:

Cost of goods sold

(166,374)

(170,473)

Amortization of inventory fair value step-up (a)

(49)

(53,670)

Depreciation cost of goods sold

(28,973)

(17,342)

Research & development employee related cost

(25,432)

(34,690)

Research & development other (b)

(7,631)

(22,578)

Selling, general & administrative employee related cost

(188,981)

(189,574)

Selling, general & administrative other (c)

(45,624)

(50,020)

Provision for litigation

1,286

31

Acquisition-related costs

(1,057)

(2,418)

Amortization

(28,802)

(29,676)

Other segment expenses (d)

(8,767)

(27,548)

Operating income

97,717

8,708

Interest income (expense)

1,681

(1,894)

FX transactional gain (loss)

4,270

(15,372)

Income before taxes

$

103,668

$

(8,558)

(a) Amounts primarily related to inventory step up associated with NuVasive Merger

(b) Amounts include In-Process Research & Development and other non-employee related costs

(c) Amounts include non-employee related costs including taxes and fees

(d) Amounts include restructuring expense and credit losses

The following table represents total net sales, net by geographic area, based on the location of the customer for the three months ended March 31, 2025 and 2024, respectively:

Net Sales

Three Months Ended

March 31,

(In thousands)

2025

2024

United States

$

483,857

$

482,927

International

114,264

123,739

Total

$

598,121

$

606,666

The following table represents total property and equipment, net by geographic area, based on the location of the customer as of March 31, 2025 and 2024, respectively:

Property and Equipment, Net

As of

March 31,

(In thousands)

2025

2024

United States

$

517,702

$

523,495

International

38,793

55,392

Total

$

556,496

$

578,887