v3.26.1
Segments
 6 Months Ended
Jun. 27, 2026
Segment Reporting [Abstract]  
Segments Segments
The Company operates two reporting segments: U.S. and International. These segments align with the Company’s operating structure and are based on the geographic markets in which the Company sells its products. Both segments sell the Company’s portfolio of products to healthcare institutions, physicians, patients, distributors and dealers. Segment net sales reflect revenue to external customers and are recorded in the same manner as described in our Significant Accounting Policies in the Company’s Annual Report on Form 10-K. Certain costs are allocated to each segment on a consistent and rational basis.
The Company identifies a business as an operating segment if (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”); and (iii) it has available discrete financial information. The Company’s CODM is its President and Chief Executive Officer, who uses segment Adjusted EBITDA to make decisions regarding the allocation of resources, assess performance and to develop annual budgets and forecasts. The Company does not disclose segment information by asset, as the CODM does not review or use such information to allocate resources or to assess the operating results and financial performance.
The following table presents segment Adjusted EBITDA reconciled to income before income taxes:
Three Months Ended June 27, 2026
U.S.InternationalConsolidated
Net sales$134,465 $18,743 $153,208 
Adjusted cost of sales(a)
30,966 6,683 
Adjusted selling expense(b)
39,050 3,392 
Adjusted marketing expense(b)
6,051 784 
Adjusted general and administrative expense(b)
25,290 3,041 
Adjusted research and development expense(c)
2,915 1 
Adjusted other segment (income) loss(d)
(295)67 
Adjusted EBITDA30,488 4,775 35,263 
Reconciliation to income before taxes:
Interest expense, net(4,068)
Depreciation and amortization(10,945)
Restructuring costs415 
Shareholder litigation costs(22)
Equity compensation(5,041)
Debt refinancing(2)
Other items(e)
(292)
Income before income taxes$15,308 
Three Months Ended June 28, 2025
U.S.InternationalConsolidated
Net sales$128,775 18,885 $147,660 
Adjusted cost of sales(a)
28,218 6,749 
Adjusted selling expense(b)
37,351 3,220 
Adjusted marketing expense(b)
6,657 933 
Adjusted general and administrative expense(b)
24,791 2,519 
Adjusted research and development expense(c)
2,917 18 
Adjusted other segment loss(d)
366 170 
Adjusted EBITDA28,475 5,276 33,751 
Reconciliation to income before taxes:
Interest expense, net(7,494)
Depreciation and amortization(12,049)
Shareholder litigation costs(13)
Equity compensation(3,643)
Debt refinancing(172)
Loss on disposal of a business(1)
Other items(e)
(66)
Income before income taxes$10,313 
Six Months Ended June 27, 2026
U.S.InternationalConsolidated
Net sales$250,910 $34,387 $285,297 
Adjusted cost of sales(a)
55,864 13,018 
Adjusted selling expense(b)
77,290 6,714 
Adjusted marketing expense(b)
11,937 1,537 
Adjusted general and administrative expense(b)
49,532 5,622 
Adjusted research and development expense(c)
5,204 1 
Adjusted other segment income(d)
(547)(53)
Adjusted EBITDA51,630 7,548 59,178 
Reconciliation to income before taxes:
Interest expense, net(8,394)
Depreciation and amortization(22,150)
Restructuring costs(39)
Shareholder litigation costs(41)
Equity compensation(8,305)
Debt refinancing(2)
Other items(e)
(422)
Income before income taxes$19,825 
Six Months Ended June 28, 2025
U.S.InternationalConsolidated
Net sales$239,295 $32,241 $271,536 
Adjusted cost of sales(a)
53,615 11,907 
Adjusted selling expense(b)
72,067 6,419 
Adjusted marketing expense(b)
12,968 1,804 
Adjusted general and administrative expense(b)
48,108 4,485 
Adjusted research and development expense(c)
5,742 21 
Adjusted other segment loss(d)
1,265 172 
Adjusted EBITDA45,530 7,433 52,963 
Reconciliation to income before income taxes:
Interest expense, net(15,003)
Depreciation and amortization(23,914)
Shareholder litigation costs(36)
Equity compensation(6,057)
Debt refinancing(172)
Loss on disposal of a business(82)
Other items(e)
(803)
Income before income taxes$6,896 
(a)Adjusted cost of sales used in calculated segment Adjusted EBITDA excludes depreciation and amortization.
(b)Adjusted selling, general and administrative expense, as used in the calculation of segment Adjusted EBITDA, excludes certain acquisition and related costs, shareholder litigation costs, certain restructuring costs, asset impairments, debt refinancing costs, equity-based compensation expense, and other segment items, including costs associated with strategic transactions, such as potential divestitures, and a transformative project to redesign systems and information processing.
(c)Adjusted research and development expense used in calculating segment Adjusted EBITDA excludes depreciation and amortization, and equity-based compensation expense.
(d)Adjusted other segment (income) expense primarily consists of foreign currency transaction and remeasurement gains and losses and other certain nonrecurring items.
(e)During the three and six months ended June 27, 2026, other items primarily consisted of strategic transaction costs. During the three and six months ended June 28, 2025, other items primarily consisted of expenses related to the divestiture of the Advanced Rehabilitation Business.