INVENTORIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVENTORIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | NOTE 7. INVENTORIES
Inventories as of December 31, 2024 and 2023, respectively 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 $215.4 million the year ended December 31, 2024, respectively. Of the $215.4 million amortization, $5.5 million related to a prior period catchup of amortization associated with the final measurement period valuation adjustment recorded to the inventory balance. During years ended December 31, 2024, 2023, and 2022, net adjustments to cost of sales related to excess and obsolete inventory were $23.4 million, $10.9 million, and $6.4 million, respectively. The net adjustments for the years ended December 31, 2024, 2023, and 2022 reflect a combination of additional expense for excess and obsolete related provisions ($34.2 million, $18.1 million, and $18.5 million, respectively) offset by sales and disposals ($10.8 million, $7.2 million, and $12.1 million, respectively) of inventory for which an excess and obsolete provision was previously recorded. |
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