v3.25.2
Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Details of Earnings (Loss), Asset and Liabilities, Significant Non-Cash Operating Activities and Capital Expenditures from Discontinued Operations

Details of loss or income from discontinued operations included in our condensed consolidated statements of operations are as follows (in thousands):

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net sales

 

$

—

 

 

$

14,575

 

 

 

7,409

 

 

 

108,399

 

Cost of products sold, excluding intangible asset amortization

 

 

—

 

 

 

(6,053

)

 

 

(2,839

)

 

 

(34,494

)

Research and development

 

 

—

 

 

 

(437

)

 

 

(233

)

 

 

(7,012

)

Selling, general and administrative

 

 

(249

)

 

 

(8,097

)

 

 

(4,525

)

 

 

(62,219

)

Restructuring and other cost reduction initiatives

 

 

—

 

 

 

(43

)

 

 

—

 

 

 

(1,894

)

Acquisition, integration, divestiture and related

 

 

—

 

 

 

(5,397

)

 

 

—

 

 

 

(11,770

)

Other income (expense), net

 

 

128

 

 

 

(301

)

 

 

1,139

 

 

 

(644

)

Interest (expense) income, net(1)

 

 

—

 

 

 

(988

)

 

 

15

 

 

 

(6,282

)

Net (loss) income from discontinued operations of before income taxes

 

 

(121

)

 

 

(6,741

)

 

 

966

 

 

 

(15,916

)

Adjustment of spine disposal group to fair value (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,143

 

Gain on sale of spine disposal group

 

 

—

 

 

 

11,284

 

 

 

—

 

 

 

11,284

 

Benefit for income taxes from discontinued operations

 

 

22

 

 

 

996

 

 

 

89

 

 

 

2,828

 

(Loss) income from discontinued operations, net of tax

 

$

(99

)

 

$

5,539

 

 

$

1,055

 

 

$

9,339

 

 

(1)
A portion of the interest on our Term Loan (as defined and described in Note 9) prior to the sale of our spine segment was allocated to discontinued operations consistent with the amount of proceeds used to repay a portion of the amounts outstanding under our Term Loan in accordance with our Credit Agreement (as defined and described in Note 9).
(2)
We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale, which resulted in a reduction of the December 2023 write-down of $11.1 million.

 

Details of assets and liabilities of discontinued operations are as follows (in thousands):

 

 

 

As of

 

 

June 30, 2025

 

 

December 31, 2024

 

Cash and cash equivalents

 

$

—

 

 

$

1,598

 

Accounts receivable, less allowance for credit losses

 

 

—

 

 

 

7,681

 

Inventories

 

 

—

 

 

 

9,416

 

Prepaid expenses and other current assets

 

 

—

 

 

 

92

 

Total Current Assets of Discontinued Operations

 

 

—

 

 

 

18,787

 

Property, plant and equipment, net

 

 

—

 

 

 

6,833

 

Other assets

 

 

—

 

 

 

695

 

Total Noncurrent Assets of Discontinued Operations

 

 

—

 

 

 

7,528

 

Accounts payable

 

 

—

 

 

 

4,879

 

Income taxes payable

 

 

—

 

 

 

30

 

Other current liabilities (1)

 

 

—

 

 

 

29,909

 

Total Current Liabilities of Discontinued Operations

 

 

—

 

 

 

34,818

 

Lease liability

 

 

—

 

 

 

22

 

Other long-term liabilities

 

 

—

 

 

 

100

 

Total Noncurrent Liabilities of Discontinued Operations

 

 

—

 

 

 

122

 

 

(1) Includes our non-cash liability of $0 million and $27.9 million as of June 30, 2025 and December 31, 2024, respectively, to transfer the net assets of the Deferred Transfer Locations to the Buyer. As of April 1, 2025, all of the Deferred Transfer Locations had been transferred to the Buyer.

 

 

Cash flows attributable to discontinued operations are included on our condensed consolidated statements of cash flows. Significant non-cash operating and investing activities attributable to discontinued operations consisted of the following (in thousands):

 

 

For the Six Months Ended June 30,

 

 

2025

 

 

2024

 

Depreciation and amortization

 

$

—

 

 

$

24

 

Share-based compensation

 

 

—

 

 

 

712

 

Gain on sale of spine disposal group

 

 

—

 

 

 

(22,427

)

Additions to instruments

 

 

—

 

 

 

1,316

 

Additions to other property, plant and equipment

 

 

—

 

 

 

88