XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.23.3

Business segment information | 9 Months Ended
--- | ---
Sep. 30, 2023
Segment Reporting [Abstract] |
Business segment information | 11. Business segment information The Company has two reporting segments: Global Spine and Global Orthopedics. The primary metric used in managing the Company is adjusted earnings before interest, tax, depreciation, and amortization (“adjusted EBITDA,” a non-GAAP financial measure). Adjusted EBITDA represents earnings before interest income (expense), income taxes, depreciation, and amortization and excludes the impact of share-based compensation, gains and losses related to changes in foreign exchange rates, charges related to the SeaSpine merger and other strategic investments, acquisition-related fair value adjustments, legal judgments and settlements, charges related to initial compliance with regulations set forth by the European Union Medical Device Regulation, and certain other activities. Corporate activities are comprised of operating expenses not directly identifiable within the two reporting segments, such as human resources, finance, legal, and information technology functions. The table below presents adjusted EBITDA by reporting segment:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(Unaudited, U.S. Dollars, in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Adjusted EBITDA by reporting segment |  |  |  |  |  |  |  |  |  |  |  |
Global Spine |  | $ | 22,593 |  |  | $ | 16,601 |  |  | $ | 58,832 |  |  | $ | 45,244 |
Global Orthopedics |  |  | 477 |  |  |  | 2,648 |  |  |  | 386 |  |  |  | 2,624 |
Corporate |  |  | (9,549 | ) |  |  | (4,994 | ) |  |  | (32,574 | ) |  |  | (15,081 | )
Consolidated adjusted EBITDA |  | $ | 13,521 |  |  | $ | 14,255 |  |  | $ | 26,644 |  |  | $ | 32,787 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  | $ | 1,576 |  |  | $ | 277 |  |  | $ | 4,131 |  |  | $ | 1,059 |
Depreciation and amortization |  |  | 13,097 |  |  |  | 7,570 |  |  |  | 39,094 |  |  |  | 21,598 |
Share-based compensation expense |  |  | 6,274 |  |  |  | 4,729 |  |  |  | 32,540 |  |  |  | 13,521 |
Foreign exchange impact |  |  | 1,909 |  |  |  | 3,253 |  |  |  | 1,057 |  |  |  | 7,486 |
SeaSpine merger-related costs |  |  | 5,416 |  |  |  | — |  |  |  | 34,362 |  |  |  | — |
Strategic investments |  |  | 913 |  |  |  | 3,390 |  |  |  | 1,883 |  |  |  | 6,184 |
Acquisition-related fair value adjustments |  |  | 7,122 |  |  |  | 419 |  |  |  | 26,907 |  |  |  | (15,795 | )
Legal judgments/settlements |  |  | 3,851 |  |  |  | 125 |  |  |  | 5,611 |  |  |  | 466 |
Medical device regulation |  |  | 1,840 |  |  |  | 2,590 |  |  |  | 7,519 |  |  |  | 6,883 |
Business interruption - COVID-19 |  |  | — |  |  |  | 1,215 |  |  |  | — |  |  |  | 1,874 |
All other |  |  | (92 | ) |  |  | 59 |  |  |  | 170 |  |  |  | 230 |
Loss before income taxes |  | $ | (28,385 | ) |  | $ | (9,372 | ) |  | $ | (126,630 | ) |  | $ | (10,719 | )
Geographical information The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(Unaudited, U.S. Dollars, in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Global Spine |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 145,764 |  |  | $ | 81,414 |  |  | $ | 432,581 |  |  | $ | 244,379 |
International |  |  | 8,588 |  |  |  | 4,772 |  |  |  | 28,953 |  |  |  | 15,244 |
Total Global Spine |  |  | 154,352 |  |  |  | 86,186 |  |  |  | 461,534 |  |  |  | 259,623 |
Global Orthopedics |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 7,482 |  |  |  | 6,588 |  |  |  | 21,341 |  |  |  | 18,818 |
International |  |  | 22,172 |  |  |  | 21,222 |  |  |  | 63,351 |  |  |  | 60,043 |
Total Global Orthopedics |  |  | 29,654 |  |  |  | 27,810 |  |  |  | 84,692 |  |  |  | 78,861 |
Consolidated |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 153,246 |  |  |  | 88,002 |  |  |  | 453,922 |  |  |  | 263,197 |
International |  |  | 30,760 |  |  |  | 25,994 |  |  |  | 92,304 |  |  |  | 75,287 |
Net sales |  | $ | 184,006 |  |  | $ | 113,996 |  |  | $ | 546,226 |  |  | $ | 338,484 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration