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Business Segment and Geographic Areas
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment and Geographic Areas Business Segment and Geographic Areas
    
We account and report for our business as a single operating segment entity engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company derives revenue globally and manages the business on a consolidated basis due to shared infrastructure and resources. Our chief operating decision maker ("CODM"), the President and Chief Executive Officer, evaluates the various global product portfolios on a net sales basis and evaluates profitability, investment, cash flow metrics and allocates resources on a consolidated worldwide basis.

Our product lines consist of orthopedic surgery and general surgery. Orthopedic surgery consists of sports medicine and lower extremities instrumentation and implants, small bone, large bone and specialty powered surgical instruments as well as imaging systems for use in minimally invasive surgical procedures and fees related to sales representation, promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, smoke evacuation devices, a line of cardiac monitoring products as well as electrosurgical generators and related instruments. These product lines' net sales and primary geographic market where the products are sold, are as follows for the years ended December 31, 2024, 2023 and 2022:
 
2024
 Orthopedic SurgeryGeneral SurgeryTotal
Primary Geographic Markets
United States$210,670 $537,554 $748,224 
Europe, Middle East & Africa132,106 110,958 243,064 
Asia Pacific119,766 74,918 194,684 
Americas (excluding the United States)81,446 39,597 121,043 
Total sales from contracts with customers$543,988 $763,027 $1,307,015 
2023
 Orthopedic SurgeryGeneral SurgeryTotal
Primary Geographic Markets
United States$199,568 $500,592 $700,160 
Europe, Middle East & Africa127,637 98,616 226,253 
Asia Pacific123,043 74,358 197,401 
Americas (excluding the United States)82,910 38,020 120,930 
Total sales from contracts with customers$533,158 $711,586 $1,244,744 
2022
 Orthopedic SurgeryGeneral SurgeryTotal
Primary Geographic Markets
United States$173,176 $405,777 $578,953 
Europe, Middle East & Africa113,649 84,288 197,937 
Asia Pacific103,353 59,124 162,477 
Americas (excluding the United States)71,350 34,755 106,105 
Total sales from contracts with customers$461,528 $583,944 $1,045,472 

Sales are attributed to countries based on the location of the customer. We held $139.9 million and $127.3 million of long-lived assets in the United States at December 31, 2024 and 2023, respectively. We held $22.9 million and $18.3 million of long-lived assets in Mexico at December 31, 2024 and 2023, respectively. There were no significant investments in long-lived assets in other countries outside the United States at December 31, 2024 and 2023.  No single customer represented over 10% of our consolidated net sales for the years ended December 31, 2024, 2023 and 2022.

The accounting policies of our single operating segment are the same as those described in Note 1. The CODM assesses performance for the single operating segment and decides how to allocate resources and make investment decisions based on net income (loss), consistent with what is reported on the consolidated statements of comprehensive income (loss). Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to CONMED’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the single segment.

The following table includes significant segment expenses for the years ended December 31, 2024, 2023 and 2022:

Years Ended
December 31,
 202420232022
Net sales
$1,307,015 $1,244,744 $1,045,472 
Cost of sales
573,983 568,499 474,227 
Salesforce and commission expense
225,886 215,799 186,596 
Marketing expense
65,338 60,918 56,027 
Distribution expense
50,183 53,701 44,874 
General and administrative expense
117,463 111,235 96,108 
Stock-based compensation expense
25,558 24,257 21,729 
Amortization expense
28,629 29,068 27,791 
Non-cash adjustments to fair value of contingent consideration liability(41,048)(2,421)2,518 
Research and development expense
54,426 52,602 47,152 
Interest expense
37,297 39,775 28,905 
Loss on convertible notes and related hedge transactions(b)
— — 112,011 
Provision for income taxes
30,606 16,369 9,720 
Other segment items(a)
6,271 10,483 18,396 
Net income (loss)
$132,423 $64,459 $(80,582)

(a)Other segment items consist of restructuring and related costs in 2024, 2023 and 2022; third party services pertaining to review of potential issues with certain royalty payments to surgeons involved in design teams in 2024; income/expense related to the termination of a distributor agreement in 2024 and 2023; lease impairment costs in 2024; acquisition and integration costs in 2023 and 2022; software implementation costs in 2023 and 2022; and a legal settlement in 2022.
(b)Loss on convertible notes and related hedge transactions consists of loss on early extinguishment of debt, loss on convertible notes conversion premium and loss on convertible notes hedge transactions settlement in 2022.
Total assets for the Company's single operating segment are the same as presented on the Company's consolidated balance sheet, which is used to measure segment performance.