Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Segment Reporting Information, by Segment

The Company’s segment results were as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
	(In thousands)
Net sales:
Prevention and Recovery	$	256,502	$	256,229	$	765,121	$	757,822
Reconstructive	127,312		103,694		389,267		269,308
	$	383,814	$	359,923	$	1,154,388	$	1,027,130
Segment Adjusted EBITDA(1):
Prevention and Recovery	$	39,532	$	40,432	$	101,050	$	94,982
Reconstructive	17,677		16,040		60,076		49,389
	$	57,209	$	56,472	$	161,126	$	144,371

(1) The following is a reconciliation of Operating loss to Adjusted EBITDA:


	Three Months Ended				Nine Months Ended
	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
	(In thousands)
Operating loss (GAAP)	$	(17,919)	$	(16,107)	$	(42,993)	$	(44,589)
Restructuring and other charges(1)	2,989		2,230		8,497		5,193
MDR and other costs(2)	3,600		1,902		10,648		5,574
Strategic transaction costs	8,146		11,362		32,549		15,780
Stock-based compensation	7,205		6,253		21,734		19,000
Depreciation and other amortization	18,159		18,397		56,109		51,639
Amortization of acquired intangibles	31,993		31,025		94,603		88,067
Insurance settlement (gain) loss(3)	975		—		(32,059)		—
Inventory step-up	2,061		1,410		12,038		3,707
Adjusted EBITDA (non-GAAP)	$	57,209	$	56,472	$	161,126	$	144,371

(1) Restructuring and other charges includes $0.8 million of expense classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the nine months ended September 30, 2022.

(2) Primarily related to costs specific to compliance with medical device reporting regulations and other requirements of the European Union Medical Devices Regulation. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.

(3) Insurance settlement (gain) loss is related to the 2019 acquisition of DJO.