Business segment information

3 Months Ended

Mar. 31, 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”). 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 foreign currency translation, charges related to strategic investments, acquisition-related fair value adjustments, amortization of acquired intangibles, gains or losses recognized on disposition of investment securities, legal judgments and settlements, charges related to compliance with regulations set forth by the European Union Medical Device Regulation, and long-term income tax rate adjustment. 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 March 31,
(Unaudited, U.S. Dollars, in thousands)		2023			2022
Adjusted EBITDA by reporting segment
Global Spine			14,981			14,033
Global Orthopedics			44			(804	)
Corporate			(11,821	)		(6,120	)
Consolidated adjusted EBITDA		$	3,204		$	7,109
Reconciling items:
Interest expense, net			1,289			375
Depreciation and amortization			12,670			7,516
Share-based compensation expense			13,020			4,332
Foreign exchange impact			(583	)		1,242
SeaSpine merger-related costs			20,740			—
Strategic investments			661			970
Acquisition-related fair value adjustments			11,636			(5,500	)
Legal judgments/settlements			469			193
Medical device regulation			3,629			1,952
Business interruption - COVID-19			—			343
All other			—			75
Loss before income taxes		$	(60,327	)	$	(4,389	)

Geographical information

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

	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2023		2022
Global Spine
U.S.	$	139,457	$	77,066
International		9,749		5,589
Total Global Spine		149,206		82,655
Global Orthopedics
U.S.		6,636		5,327
International		19,362		18,436
Total Global Orthopedics		25,998		23,763
Consolidated
U.S.		146,093		82,393
International		29,111		24,025
Net sales	$	175,204	$	106,418