Business segment information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business segment information

11. Business segment information

The Company has two reporting segments: Global Spine and Global Orthopedics. The primary metric used in managing the Company is adjusted earnings before interest, tax, depreciation, and amortization (“adjusted EBITDA,” a non-GAAP financial measure). Adjusted EBITDA represents earnings before interest income (expense), income taxes, depreciation, and amortization and excludes the impact of share-based compensation, gains and losses related to changes in foreign exchange rates, charges related to the SeaSpine merger and other strategic investments, acquisition-related fair value adjustments, legal judgments and settlements, and charges related to initial compliance with regulations set forth by the European Union Medical Device Regulation. Corporate activities comprise operating expenses and activities not directly identifiable within the two reporting segments, such as human resources, finance, legal, and information technology functions. The table below presents adjusted EBITDA by reporting segment:

	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited, U.S. Dollars, in thousands)	2023			2022			2023			2022
Adjusted EBITDA by reporting segment
Global Spine		21,258			14,610			36,239			28,643
Global Orthopedics		(135	)		780			(91	)		(24	)
Corporate		(11,204	)		(3,967	)		(23,025	)		(10,087	)
Consolidated adjusted EBITDA	$	9,919		$	11,423		$	13,123		$	18,532
Reconciling items:
Interest expense, net		1,266			407			2,555			782
Depreciation and amortization		13,327			6,512			25,997			14,028
Share-based compensation expense		13,246			4,460			26,266			8,792
Foreign exchange impact		(269	)		2,991			(852	)		4,233
SeaSpine merger-related costs		8,206			—			28,946			—
Strategic investments		309			1,824			970			2,794
Acquisition-related fair value adjustments		8,149			(10,714	)		19,785			(16,214	)
Legal judgments/settlements		1,291			148			1,760			341
Medical device regulation		2,050			2,248			5,679			4,198
Business interruption - COVID-19		—			316			—			659
All other		262			189			262			266
Income (loss) before income taxes	$	(37,918	)	$	3,042		$	(98,245	)	$	(1,347	)

Geographical information

The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:

	Three Months Ended June 30,				Six Months Ended June 30,
(Unaudited, U.S. Dollars, in thousands)	2023		2022		2023		2022
Global Spine
U.S.	$	147,360	$	85,899	$	286,817	$	162,965
International		10,616		4,883		20,365		10,472
Total Global Spine		157,976		90,782		307,182		173,437
Global Orthopedics
U.S.		7,223		6,903		13,859		12,230
International		21,817		20,385		41,179		38,821
Total Global Orthopedics		29,040		27,288		55,038		51,051
Consolidated
U.S.		154,583		92,802		300,676		175,195
International		32,433		25,268		61,544		49,293
Net sales	$	187,016	$	118,070	$	362,220	$	224,488