The Company evaluates the recoverability of Goodwill annually or more frequently if an event occurs or circumstances change in the interim that would be more likely than not to reduce the fair value of the asset below its carrying amount. For the quarter ended October 3, 2025, the Company identified an impairment indicator associated with a sustained decrease in the Company’s publicly quoted share price and market capitalization, relative to the carrying value of our reporting units. Accordingly, the Company performed an interim quantitative assessment of Goodwill. We determined the fair values of the reporting units by equally weighting a discounted cash flow approach and market valuation approach. Determining the fair value of a reporting unit requires the application of judgment and involves the use of significant estimates and assumptions which can be affected by changes in business climate, economic conditions, the competitive environment, and other factors. We base these fair value estimates on assumptions our management believes to be reasonable but which are unpredictable and inherently uncertain.

Based upon the results of the quantitative impairment test, the Company determined that the carrying values of the Prevention & Recovery and Reconstructive reporting units exceeded their respective fair values as of October 3, 2025. In order to align each reporting unit’s fair value model with the Company’s overall market capitalization, the Company increased the weighted average cost of capital and reduced market multiples to the low end of acceptable ranges. As a result, the Company recognized a non-cash goodwill impairment charge of $540.8 million ($222.3 million for the Prevention & Recovery reporting unit and $318.6 million for the Reconstructive reporting unit) in the quarter ended October 3, 2025. The accumulated non-cash goodwill impairment loss is $1,185.8 million, inclusive of the charges from the prior year ($537.3 million for the P&R reporting unit and $648.6 million for the Recon reporting unit).

A further sustained decline in our share price and market capitalization, future cash flows, end-markets, and/or geographic markets could result in additional impairment charges that could materially affect our financial statements in any given year. Actual results could differ from our estimates and projections, which would also affect the assessment of impairment. For further information regarding accounting for Goodwill and Intangibles, reference is made to Note 2 “Summary of Significant Accounting Policies - Impairment of Goodwill and Indefinite-Lived Intangible Assets” in the Notes to Consolidated Financial Statements in the Company’s 2024 Form 10-K.


	Prevention & Recovery		Reconstructive		Total
	(In thousands)
Balance, December 31, 2024	$	767,862	$	924,847	$	1,692,709
Goodwill impairment charge	(222,264)		(318,558)		(540,822)
Reclassified as held for sale (1)	(18,823)		—		(18,823)
Impact of foreign currency translation	31,109		54,496		85,605
Balance, October 3, 2025	$	557,884	$	660,785	$	1,218,669