v3.25.2
SEGMENT AND GEOGRAPHIC INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
The Company is organized primarily on the basis of products and operates two global reportable segments. Resources are allocated and performance is assessed by the Company’s President and Chief Executive Officer, which the Company has determined to be the Chief Operating Decision Maker (“CODM”).
The two reportable segments and their activities are described below.
•The Codman Specialty Surgical segment operations consist of (i) the Neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment and (ii) the Instruments business, which sells more than 40,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, dental, podiatry, and veterinary offices; and (iii) the ENT business, which includes instrumentation, balloon technologies for sinus dilation and eustachian tube dilation, as well as surgical navigation systems.
•The Tissue Technologies segment operations consist of such offerings as skin and wound repair, plastics and surgical reconstruction products and nerve and tendon repair products. The Tissue Technologies segment includes the Company’s private label business.
The Corporate and Other category includes (i) various executive, finance, human resource, information systems and legal functions, (ii) brand management, and (iii) share-based compensation costs, which are not allocated to the reportable segments.
For both segments, the CODM uses segment revenue and segment operating income to assess the performance for each segment and in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for segment revenue and segment operating income when making decisions about allocating capital and personnel to the segments.
The operating results of the reportable segments as presented are not comparable to one another because (i) certain operating segments are more dependent than others on corporate functions for unallocated general and administrative and/or operational manufacturing functions and (ii) the Company does not allocate certain manufacturing costs and general and administrative costs to the reportable segments.
Net sales and profit by each reportable segment for the three and six months ended June 30, 2025 and 2024 are as follows:
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Dollars in thousandsCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotalCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotal
Total revenue, net$303,958 $111,647 $— $415,605 $584,622 $213,636 $— $798,258 
Cost of goods sold102,004 50,768 53,501 206,273 194,781 95,830 103,883 394,494 
Research and development7,698 4,334 14,965 26,997 15,643 8,054 28,028 51,725 
Selling, general & administrative69,202 38,317 72,371 179,890 138,877 74,805 147,705 361,387 
Intangible asset amortization— — 3,754 3,754 — — 7,458 7,458 
Goodwill impairment388,106 123,259 — 511,365 388,106 123,259 — 511,365 
Total cost and expenses567,010 216,678 144,591 928,279 737,407 301,948 287,074 1,326,429 
Operating income (loss)$(263,052)$(105,031)$(144,591)(512,674)$(152,785)$(88,312)$(287,074)(528,171)
Interest income4,710 9,130 
Interest expense(21,042)(39,857)
Other income, net(1,946)(2,090)
Loss before income taxes$(530,952)$(560,988)
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Dollars in thousandsCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotalCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotal
Total revenue, net$301,761 $116,414 $— $418,175 $558,195 $228,852 $— $787,047 
Cost of goods sold92,640 41,444 58,174 192,258 185,613 78,983 89,700 354,296 
Research and development7,567 4,451 17,749 29,767 13,332 9,351 34,049 56,732 
Selling, general & administrative37,413 33,332 124,727 195,472 91,617 72,665 196,988 361,270 
Intangible asset amortization— — 3,707 3,707 — — 13,814 13,814 
Goodwill impairment— — — — — — — — 
Total cost and expenses137,620 79,227 204,357 421,204 290,562 160,999 334,551 786,112 
Operating income (loss)$164,141 $37,187 $(204,357)(3,029)$267,633 $67,853 $(334,551)935 
Interest income5,058 10,098 
Interest expense(18,651)(32,275)
Other income, net1,437 827 
Loss before income taxes$(15,185)$(20,415)
The Company does not allocate any assets to the reportable segments. No asset information is reported to the CODM and disclosed in the financial information for each segment. The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following:
 Three Months Ended June 30,Six Months Ended June 30,
Dollars in thousands2025202420252024
United States$306,308 $310,225 $588,525 $566,454 
Europe42,594 40,689 77,920 82,285 
Asia Pacific47,732 45,951 92,837 95,496 
Rest of World18,971 21,310 38,976 42,812 
Total Revenues$415,605 $418,175 $798,258 $787,047