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Segments
 6 Months Ended 12 Months Ended
Jul. 03, 2021
Dec. 31, 2020
Segments
11. Segments
The Company’s two reportable segments are U.S. and International. The Company’s products are primarily sold to
orthopedists,
musculoskeletal and sports medicine physicians, podiatrists, neurosurgeons and orthopedic spine surgeons, as well as to their patients. The Company does not disclose segment information by asset as the Chief Operating Decision Maker does not review or use it to allocate resources or to assess the operating results and financial performance. Segment adjusted EBITDA is the segment profitability metric reported to the Company’s Chief Operating Decision Maker for purposes of decisions about allocation of resources to, and assessing performance of, each reportable segment.
The following table presents segment adjusted EBITDA reconciled to income before income taxes:
 
    
Three Months Ended
    
Six Months Ended
  
    
July 3,
2021
    
June 27,
2020
    
July 3,
2021
    
June 27,
2020
  
Segment adjusted EBITDA
                                 
U.S.
    $ 17,149     $ 7,439     $ 27,147     $ 21,151  
International
      2,738       (497 )      3,810       37  
Depreciation and amortization
      (7,479 )      (7,248 )      (14,663 )      (14,513 ) 
Interest (expense) income
      (1,681 )      (2,834 )      1,195       (5,215 ) 
Equity compensation
      (5,853 )      (255 )      16,559       6,771  
COVID-19
benefits, net
      —         1,101       —         1,101  
Succession and transition charges
      (187 )      (3,801 )      (344 )      (4,574 ) 
Foreign currency impact
      12       46       64       (40 ) 
Acquisition and integration costs
      (1,833 )      —         (5,029 )      —    
Inventory
step-up
costs
      (2,106 )      —         (2,106 )         
Equity loss in unconsolidated investments
      (432 )      —         (901 )      —    
Change in fair value of contingent consideration
      (641 )      —         (641 )      —    
Impairments related to variable interest entity
      (7,043 )      —         (7,043 )      —    
Other
non-recurring
costs
      (1,710 )      (41 )      (2,659 )      (283 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
(Loss) income before income taxes
    $ (9,066 )    $ (6,090 )    $ 15,389     $ 4,435  
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Bio Ventus LLC    
Segments  
15. Segments
Segment information by asset is not disclosed as it is not reviewed by the CODM or used to allocate resources or to assess the operating results and financial performance. We believe EBITDA, adjusted for additional non-operational factors disclosed in the table below, or Adjusted EBITDA, is a key measure for internal reporting. Adjusted EBITDA should not be considered in isolation or as a substitute for consolidated net income (loss) attributable to the Company, the most closely analogous U.S. GAAP measure. Adjusted EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. The following table presents segment adjusted EBITDA reconciled to income from continuing operations before income taxes for the years ended December 31 as follows:
 
    
2020
     
2019
     
2018
  
Segment adjusted EBITDA from continuing operations
         
U.S.
    $ 69,252    $ 71,673    $ 67,480
International
      3,191      7,515      4,691
Depreciation and amortization
      (28,643 )       (30,316 )       (29,238 ) 
Interest expense
      (9,751 )       (21,579 )       (19,171 ) 
Equity compensation
      (10,103 )       (10,844 )       (14,325 ) 
COVID-19 benefits, net
      4,123      —        —  
Succession and transition charges
      (5,609 )       —        —  
Restructuring costs
      (563 )       (575 )       (1,373 ) 
Foreign currency impact
      117      (8 )       (234 ) 
Equity loss in unconsolidated investments
      (467 )       —        —  
Other non-recurring costs
      (5,633 )       (6,177 )       (1,723 ) 
  
 
 
     
 
 
     
 
 
  
Income from continuing operations before income taxes
    $ 15,914    $ 9,689    $ 6,107