Inventories included the following:

As part of the NuVasive Merger, a net step up in the value of inventory of $219.6 million was recorded, with certain acquired inventory receiving a step up of $286.7 million, and certain acquired inventory receiving a step down of $67.1 million. The net step up was composed of $3.1 million for work in process and $216.5 million for finished goods. The amortization of the inventory step up recorded in product cost of sales was $60.7 million and $167.9 million for the three and nine months ended September 30, 2024, respectively. Of the $60.7 million amortization in the three months ended September 30, 2024, $5.5 million related to a prior period catchup of amortization associated with the final measurement period valuation adjustment recorded to the inventory balance. As of September 30, 2024, the total remaining balance of inventory fair value adjustment was a step down of $19.8 million.

During the three months ended September 30, 2024 and 2023, net adjustments to cost of sales related to excess and obsolete inventory were $5.7 million and $2.7 million, respectively. The net adjustments for the three months ended September 30, 2024 and 2023 reflect a combination of additional expense for excess and obsolete related provisions ($6.9 million and $4.7 million, respectively) offset by sales and disposals ($1.2 million and $2.0 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods.