| Schedule of segment revenue and significant segment expenses |
The following represents total segment revenue and significant segment expenses for the periods indicated (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Net sales | | $ | 416,244 | | $ | 384,157 | | $ | 1,216,964 | | $ | 1,121,970 | Cost of sales standard(1) | | | 160,129 | | | 148,557 | | | 465,654 | | | 443,412 | Cost of sales other(2) | | | 55,484 | | | 49,189 | | | 150,716 | | | 135,640 | Selling and marketing expenses | | | 72,618 | | | 67,335 | | | 221,757 | | | 198,036 | General and administrative expenses | | | 46,893 | | | 52,466 | | | 145,193 | | | 142,348 | Research and development expenses | | | 22,393 | | | 23,966 | | | 70,391 | | | 70,811 | Other operating expenses(3) | | | (36) | | | 32 | | | (70) | | | 1,198 | Other (income) expense — net | | | 2,978 | | | 4,072 | | | 2,678 | | | 10,648 | Income tax expense | | | 13,474 | | | 10,785 | | | 38,536 | | | 29,394 | Net income | | $ | 42,311 | | $ | 27,755 | | $ | 122,109 | | $ | 90,483 |
| (1) | Cost of sales standard represents costs of goods sold measured at the internal standard cost for production of inventory. Inventory standard costs include material, labor and manufacturing overhead. |
| (2) | Cost of sales other includes amortization expense associated with our developed technology and license agreement intangible assets, freight and handling associated with shipments to customers, provisions based on estimated excess, slow moving and obsolete inventories, manufacturing and price variances, and royalties. |
| (3) | Other operating expenses include contingent consideration expense (benefit) related to the changes in fair value of contingent payments associated with acquisitions. |
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