XML 32 R21.htm IDEA: XBRL DOCUMENT v3.25.1
SEGMENT AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
The Company is organized primarily on the basis of products and operates two global reportable segments. Resources are allocated and performance is assessed by the Company’s President and Chief Executive Officer, which the Company has determined to be the Chief Operating Decision Maker (“CODM”).
The two reportable segments and their activities are described below.
•The Codman Specialty Surgical segment operations consist of (i) the Neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment and (ii) the Instruments business, which sells more than 40,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, dental, podiatry, and veterinary offices; and (iii) the ENT business, which includes instrumentation, balloon technologies for sinus dilation and eustachian tube dilation, as well as surgical navigation systems.
•The Tissue Technologies segment operations consist of such offerings as skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The Tissue Technologies segment includes the Company’s private label business.
The Corporate and Other category includes (i) various executive, finance, human resource, information systems and legal functions, (ii) brand management, and (iii) share-based compensation costs, which are not allocated to the reportable segments.
For both segments, the CODM uses segment revenue and segment operating income to assess the performance for each segment and in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for segment revenue and segment operating income when making decisions about allocating capital and personnel to the segments.
The operating results of the reportable segments as presented are not comparable to one another because (i) certain operating segments are more dependent than others on corporate functions for unallocated general and administrative and/or operational manufacturing functions and (ii) the Company does not allocate certain manufacturing costs and general and administrative costs to the reportable segments.
Net sales and profit by each reportable segment for the three months ended March 31, 2025 and 2024 are as follows:
Three Months Ended March 31, 2025
Dollars in thousandsCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotal
Total revenue, net$280,664 $101,989 $— $382,653 
Cost of goods sold92,682 45,063 50,476 188,221 
Research and development7,945 3,719 13,064 24,728 
Selling, general and administrative69,674 37,161 74,662 181,497 
Intangible asset amortization— — 3,704 3,704 
Total cost and expenses170,301 85,943 141,906 398,150 
Operating income (loss)$110,363 $16,046 $(141,906)(15,497)
Interest income4,420 
Interest expense(18,815)
Other income, net(144)
Loss before income taxes$(30,036)
Three Months Ended March 31, 2024
Dollars in thousandsCodman Specialty SurgicalTissue TechnologiesCorporate and OtherTotal
Total revenue, net$256,434 $112,438 $— $368,872 
Cost of goods sold92,973 37,538 31,527 162,038 
Research and development5,765 4,901 16,299 26,965 
Selling, general and administrative54,204 39,333 72,261 165,798 
Intangible asset amortization— — 10,107 10,107 
Total cost and expenses152,942 81,772 130,194 364,908 
Operating income (loss)$103,492 $30,666 $(130,194)3,964 
Interest income5,040 
Interest expense(13,624)
Other income, net(610)
Loss before income taxes$(5,230)
The Company does not allocate any assets to the reportable segments. No asset information is reported to the CODM and disclosed in the financial information for each segment. The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following:
 Three Months Ended March 31,
Dollars in thousands20252024
United States$282,217 $256,229 
Europe35,326 41,596 
Asia Pacific45,105 49,545 
Rest of World20,005 21,502 
Total Revenues$382,653 $368,872