Inventories included the following:

As part of the NuVasive Merger, a step up in the value of inventory of $202.6 million was recorded, which was composed of $3.0 million for work in process and $199.6 million for finished goods. The amortization of the inventory step up recorded in product cost of sales was $53.7 million and $107.3 million for the three and six months ended June 30, 2024, respectively. As of June 30, 2024, the total remaining balance of inventory step up was $23.7 million.

During the three months ended June 30, 2024 and 2023, net adjustments to cost of sales related to excess and obsolete inventory were $6.6 million and $1.9 million, respectively. The net adjustments for the three months ended June 30, 2024 and 2023 reflect a combination of additional expense for excess and obsolete related provisions ($8.6 million and $3.4 million, respectively) offset by sales and disposals ($2.0 million and $1.5 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods.