v3.24.0.1

Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company conducts its continuing operations through the Prevention & Recovery and Reconstructive operating segments, which also represent the Company’s reportable segments. • Prevention & Recovery - a leader in orthopedic solutions and recovery sciences, providing devices, software and services across the patient care continuum from injury prevention to rehabilitation after surgery, injury, or from degenerative disease. •Reconstructive - innovation market-leader positioned in the fast-growing surgical implant business, offering a comprehensive suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger. The Company’s management, including the chief operating decision maker, evaluates the operating results of each of its reportable segments based upon Net sales and Adjusted EBITDA, which excludes from Net loss from continuing operations the effect of restructuring and certain other charges, MDR and related costs, acquisition-related intangible asset amortization and other non-cash charges, strategic transaction costs, stock-based compensation, insurance settlement gain, and inventory step-up charges from the operating income of the Company’s operating segments. The Company’s segment results were as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In thousands)
Net sales: |  |  |  |  |
Prevention & Recovery | $ | 1,076,776 |  |  | $ | 1,027,628 |  |  | $ | 1,026,029 |
Reconstructive | 630,421 |  |  | 535,473 |  |  | 400,159 |
Total Net sales | $ | 1,707,197 |  |  | $ | 1,563,101 |  |  | $ | 1,426,188 |
Segment Adjusted EBITDA(1): |  |  |  |  |
Prevention & Recovery | $ | 152,501 |  |  | $ | 141,344 |  |  | $ | 133,500 |
Reconstructive | 116,726 |  |  | 94,726 |  |  | 72,496 |
Total Adjusted EBITDA(1) | $ | 269,227 |  |  | $ | 236,070 |  |  | $ | 205,996 |
Depreciation, amortization and impairment |  |  |  |  |
Prevention & Recovery | $ | 115,752 |  |  | $ | 104,458 |  |  | $ | 97,898 |
Reconstructive | 101,357 |  |  | 98,507 |  |  | 89,091 |
Total depreciation, amortization and impairment | $ | 217,109 |  |  | $ | 202,965 |  |  | $ | 186,989 |
Capital expenditures: |  |  |  |  |
Prevention & Recovery | $ | 26,356 |  |  | $ | 25,140 |  |  | $ | 19,514 |
Reconstructive | 95,867 |  |  | 74,407 |  |  | 49,077 |
Total capital expenditures | $ | 122,223 |  |  | $ | 99,547 |  |  | $ | 68,591 |
(1) The following is a reconciliation of Income from continuing operations before income taxes to Adjusted EBITDA:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In thousands)
Loss from continuing operations before income taxes | $ | (67,128) |  |  | $ | (2,069) |  |  | $ | (121,781) |
Restructuring and other charges(1) | 19,950 |  |  | 18,960 |  |  | 13,914 |
MDR and other costs(2) | 27,400 |  |  | 16,709 |  |  | 7,949 |
Strategic transaction costs | 38,250 |  |  | 61,024 |  |  | 23,448 |
Stock-based compensation | 32,079 |  |  | 31,493 |  |  | 25,737 |
Depreciation and other amortization | 83,592 |  |  | 76,664 |  |  | 70,069 |
Amortization of acquired intangibles | 133,517 |  |  | 126,301 |  |  | 116,920 |
Insurance settlement gain(3) | — |  |  | (36,705) |  |  | — |
Inventory step-up | 148 |  |  | 12,802 |  |  | 10,758 |
Interest expense, net | 19,749 |  |  | 24,052 |  |  | 29,112 |
Debt extinguishment charges | 7,333 |  |  | 20,396 |  |  | 29,870 |
Gain on investment in ESAB Corporation | — |  |  | (102,669) |  |  | — |
Gain on cost basis investment | — |  |  | (8,800) |  |  | — |
Other income, net | (25,663) |  |  | (2,088) |  |  | — |
Adjusted EBITDA (non-GAAP) | 269,227 |  |  | 236,070 |  |  | 205,996 |
(1) Restructuring and other charges includes $2.6 million, $1.7 million and $5.2 million of expense classified as Cost of sales on the Company’s Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union MDR. These costs are classified as Selling, general and administrative expense on our Consolidated Statements of Operations. (3) Insurance settlement gain is related to the 2019 acquisition of DJO.
| December 31,
| 2023 |  | 2022
| (In thousands)
Total assets(1): |  |  |
Prevention & Recovery | $ | 2,414,014 |  |  | $ | 2,470,917 |
Reconstructive | 2,095,320 |  |  | 1,802,331 |
Total | $ | 4,509,334 |  |  | $ | 4,273,248 |
(1) Includes allocation of certain centrally managed assets, including cash and cash equivalents. The detail of the Company’s operations by geography is as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (In thousands)
Net sales by origin(1): |  |  |  |  |
United States | $ | 1,152,360 |  |  | $ | 1,062,765 |  |  | $ | 1,030,440 |
Foreign locations | 554,837 |  |  | 500,336 |  |  | 395,748 |
Total | $ | 1,707,197 |  |  | $ | 1,563,101 |  |  | $ | 1,426,188 |
(1) The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated.
| December 31,
| 2023 |  | 2022
| (In thousands)
Property, plant and equipment, net(1): |  |  |
United States | $ | 179,146 |  |  | $ | 157,897 |
Switzerland | 45,995 |  |  | 41,113 |
Germany | 20,147 |  |  | 16,450 |
Mexico | 8,006 |  |  | 6,605 |
France | 5,529 |  |  | 3,058 |
Other foreign locations | 11,975 |  |  | 11,618 |
Total | $ | 270,798 |  |  | $ | 236,741 |
(1) As the Company does not allocate all long-lived assets (specifically intangible assets) to each individual country, evaluation of long-lived assets in total is impracticable.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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