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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2024
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]  
Segment And Geographic Information NOTE 19. SEGMENT AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Daniel T. Scavilla, Chief Executive Officer is identified as the CODM who determines resource allocation, investing activities, and performance assessment. The CODM uses revenue, gross profit and operating income to assess financial performance of the segments and make key operating decisions. Our CODM does not evaluate operating segments using asset or liability information.

The Company identified two operating segments, Musculoskeletal Solutions and Enabling Technologies based on the overall management structure and business strategy. The Company aggregates these operating segments into one reportable segment, based on conclusions reached after considering relevant factors such as economic similarity, customer base, regulatory environment, production processes, nature of services and products provided, and our comprehensive approach to product development and offerings targeting patient needs through procedural-based solutions.

The following table represents total segment revenue, significant segments expenses and other expenses for the years ended December 31, 2024, 2023 and 2022, respectively:

Year Ended

December 31,

2024

2023

2022

Net Sales

$

2,519,354

$

1,568,476

$

1,022,843

Less:

Cost of goods sold

(719,160)

(404,785)

(229,323)

Amortization of inventory fair value step-up (a)

(215,420)

(71,656)

(894)

Depreciation cost of goods sold

(100,899)

(71,733)

(33,508)

Research & development employee related cost

(119,166)

(95,208)

(57,124)

Research & development other (b)

(44,588)

(28,802)

(15,890)

Selling, general & administrative employee related cost

(763,188)

(514,810)

(360,003)

Selling, general & administrative other (c)

(173,107)

(103,858)

(59,754)

Provision for litigation

(314)

(434)

(2,341)

Acquisition related costs

(29,623)

(68,274)

(5,959)

Amortization

(119,373)

(51,032)

(17,735)

Other segment expenses (d)

(66,320)

(26,880)

(10,506)

Operating income

168,196

131,004

229,806

Interest income (expense)

(4,189)

20,130

14,233

FX transactional gain (loss)

(43,285)

14,259

(1,020)

Income before taxes

$

120,722

$

165,393

$

243,019

(a) Amounts primarily related to inventory step-up associated with the NuVasive Merger

(b) Amounts include IPR&D and other non-employee related costs

(c) Amounts include non-employee related costs including taxes and fees

(d) Amounts include restructuring expense and credit losses

The following table represents total net sales by geographic area, based on the location of the customer for the years ended December 31, 2024, 2023 and 2022, respectively:

Net Sales

Year Ended

December 31,

(In thousands)

2024

2023

2022

United States

$

2,000,067

$

1,279,765

$

871,939

International

519,288

288,711

150,904

Total

$

2,519,355

$

1,568,476

$

1,022,843

The following table represents total property and equipment, net by geographic area:

Property and Equipment, Net

As of

December 31,

(In thousands)

2024

2023

United States

$

523,002

$

527,332

International

44,716

59,600

Total

$

567,718

$

586,932