XML 44 R29.htm IDEA: XBRL DOCUMENT v3.25.0.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Summary of Details of Income (Loss), Asset and Liabilities, Significant Non-Cash Operating Activities and Capital Expenditures from Discontinued Operations

Details of Income (loss) from discontinued operations included in our consolidated statements of operations are as follows (in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Net Sales

 

 

 

 

 

 

 

 

 

Third party, net

 

$

132,785

 

 

$

409,181

 

 

$

449,806

 

Related party, net

 

 

—

 

 

 

103

 

 

 

764

 

Total Net Sales

 

 

132,785

 

 

 

409,284

 

 

 

450,570

 

Cost of products sold, excluding intangible asset amortization

 

 

(47,947

)

 

 

(113,867

)

 

 

(130,719

)

Related party cost of products sold, excluding intangible asset amortization

 

 

—

 

 

 

(97

)

 

 

(721

)

Intangible asset amortization

 

 

—

 

 

 

(52,840

)

 

 

(53,885

)

Research and development

 

 

(7,562

)

 

 

(26,559

)

 

 

(31,544

)

Selling, general and administrative

 

 

(75,403

)

 

 

(247,926

)

 

 

(270,812

)

Restructuring and other cost reduction initiatives

 

 

(1,660

)

 

 

(13,068

)

 

 

(8,795

)

Acquisition, integration, divestiture and related

 

 

(11,770

)

 

 

(175

)

 

 

(2,850

)

Other (expense) income, net

 

 

(384

)

 

 

(457

)

 

 

746

 

Interest expense, net(1)

 

 

(6,259

)

 

 

(16,422

)

 

 

(7,409

)

Loss from discontinued operations before income taxes

 

 

(18,200

)

 

 

(62,127

)

 

 

(55,419

)

Adjustment of spine disposal group to fair value(2)

 

 

11,143

 

 

 

(289,456

)

 

 

—

 

Gain on sale of spine disposal group

 

 

11,079

 

 

 

—

 

 

 

—

 

Benefit for income taxes from discontinued operations

 

 

3,983

 

 

 

14,350

 

 

 

38,442

 

Income (Loss) from discontinued operations, net of tax

 

$

8,005

 

 

$

(337,233

)

 

$

(16,977

)

 

(1)
A portion of the interest on our Term Loan (as defined and described in Note 9) was allocated to discontinued operations consistent with the amount of proceeds used to repay a portion of the amounts outstanding under our Term Loan in accordance with our Credit Agreement (as defined and described in Note 9).
(2)
We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale, which resulted in a reduction of the December 2023 write-down of $11.1 million.

Details of assets and liabilities of discontinued operations are as follows (in thousands):

 

 

 

As of December 31,

 

 

2024

 

 

2023

 

Cash and cash equivalents

 

$

1,598

 

 

$

16,257

 

Accounts receivable, less allowance for credit losses

 

 

7,681

 

 

 

83,871

 

Inventories

 

 

9,416

 

 

 

130,430

 

Prepaid expenses and other current assets

 

 

92

 

 

 

12,215

 

Total Current Assets of Discontinued Operations

 

 

18,787

 

 

 

242,773

 

Property, plant and equipment, net

 

 

6,833

 

 

 

62,692

 

Intangible assets, net

 

 

—

 

 

 

477,110

 

Other assets

 

 

695

 

 

 

14,743

 

Total Noncurrent Assets of Discontinued Operations

 

 

7,528

 

 

 

554,545

 

Accounts payable

 

$

4,879

 

 

$

24,186

 

Income taxes payable

 

 

30

 

 

 

410

 

Other current liabilities (1)

 

 

29,909

 

 

 

51,262

 

Total Current Liabilities of Discontinued Operations

 

 

34,818

 

 

 

75,858

 

Deferred income taxes

 

 

—

 

 

 

86,037

 

Lease liability

 

 

22

 

 

 

8,032

 

Other long-term liabilities

 

 

100

 

 

 

972

 

Total Noncurrent Liabilities of Discontinued Operations

 

$

122

 

 

$

95,041

 

Adjustment of spine disposal group to fair value (2)

 

 

—

 

 

 

(289,456

)

 

(1) Includes our non-cash liability of $27.9 million as of December 31, 2024 to transfer the net assets of the remaining Deferred Transfer Locations to the Buyer.

(2) This adjustment is reflected in Noncurrent assets of discontinued operations in the consolidated balance sheets.

 

Cash flows attributable to discontinued operations are included on our consolidated statements of cash flows. Significant non-cash operating and investing activities attributable to discontinued operations consisted of the following (in thousands):

 

 

For the Years Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Depreciation and amortization

 

$

25

 

 

$

87,179

 

 

$

85,591

 

Share-based compensation

 

 

712

 

 

 

3,545

 

 

 

4,467

 

Other non-cash items

 

 

1,960

 

 

 

—

 

 

 

—

 

(Gain) loss on sale of spine disposal group

 

 

(22,222

)

 

 

289,456

 

 

 

—

 

Additions to instruments

 

 

1,330

 

 

 

5,978

 

 

 

10,089

 

Additions to other property, plant & equipment

 

 

88

 

 

 

899

 

 

 

1,984