Acquisition and Other Expense

9 Months Ended

Sep. 30, 2022

Acquisition and Other Expense [Abstract]

Acquisition and other expense consists of the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021







Acquisition costs included in cost of sales	$	2,096	$	—	$	2,445	$	—


Acquisition costs	$	3,706	$	—	$	6,306	$	—

Legal matters	—		—		775		—
Restructuring and related costs	—		—		—		414

Acquisition and other costs included in selling and administrative expense	$	3,706	$	—	$	7,081	$	414





Convertible notes premium on extinguishment	$	—	$	—	$	103,125	$	—
Change in fair value of convertible notes hedges upon settlement	—		—		5,460		—
Loss on early extinguishment of debt	—		1,127		3,426		1,127
Debt related costs included in other expense	$	—	$	1,127	$	112,011	$	1,127

During the three and nine months ended September 30, 2022 we recognized $2.1 million and $2.4 million, respectively, in costs for inventory step-up adjustments associated with the In2Bones Acquisition, as further described in Note 4.

During the three and nine months ended September 30, 2022 we recognized $3.7 million and $6.3 million, respectively, in consulting fees, legal fees and other integration related costs associated with the acquisitions of In2Bones and Biorez, as further described in Note 4. These costs were included in selling and administrative expense.

During the nine months ended September 30, 2022, we recognized $0.8 million in costs related to the settlement of litigation. These costs were included in selling and administrative expense.

During the nine months ended September 30, 2021 we recorded a charge of $0.4 million related to the restructuring of our sales force which consisted primarily of termination payments to Orthopedic distributors made in exchange for ongoing assistance to transition to employee-based sales representatives and severance. These costs were charged to selling and administrative expense.

During the nine months ended September 30, 2022, we recorded expense of $103.1 million related to the conversion premium on the repurchase and extinguishment of $275.0 million of the 2.625% Notes, $5.5 million related to the settlement of the associated convertible notes hedge transactions and $3.4 million related to the write-off of deferred financing fees associated with the repurchase and extinguishment of $275.0 million of the 2.625% Notes and the pay down of $90.0 million on our term loan. These costs were recorded in other expense as further discussed in Note 11.

During the three and nine months ended ended September 30, 2021, we recorded $1.1 million related to a loss on early extinguishment and third party fees associated with the seventh amended and restated senior credit agreement. These costs were included in other expense.