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Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

8. Goodwill

The Company tests goodwill at least annually for impairment. The Company tests more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include, among others, declines in sales, earnings, or cash flows, or the development of a material adverse change in the business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment.

The following table presents the net carrying value of goodwill as of December 31, 2024, and 2023, and a rollforward of such balances from December 31, 2023, by reportable unit:

(U.S. Dollars, in thousands)

 

Balance as of
December 31, 2023

 

 

Impairment

 

 

Currency translation adjustment

 

 

Balance as of
December 31, 2024

 

Global Spine - Gross

 

$

194,934

 

 

$

—

 

 

$

—

 

 

$

194,934

 

Global Spine - Accumulated Impairment Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

$

—

 

Global Spine - Net

 

$

194,934

 

 

$

—

 

 

$

—

 

 

$

194,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Orthopedics - Gross

 

$

11,477

 

 

$

—

 

 

$

(712

)

 

$

10,765

 

Global Orthopedics - Accumulated Impairment Loss

 

 

(11,477

)

 

 

—

 

 

 

712

 

 

$

(10,765

)

Global Orthopedics - Net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, net of accumulated impairment losses

 

$

194,934

 

 

$

—

 

 

$

—

 

 

$

194,934

 

In the fourth quarter of 2022, the Company performed a qualitative assessment for its annual goodwill impairment analysis, which did not result in an impairment charge. This qualitative analysis considered all relevant factors specific to the reporting units, including macroeconomic conditions, industry and market considerations, overall financial performance, and relevant entity-specific events.

In the third quarter of 2023, the Company announced the termination of its former President and Chief Executive Officer, former Chief Financial Officer, and former Chief Legal Officer, from their respective roles. Immediately following the announcement, the Company’s market capitalization decreased by approximately 30%, indicating that an impairment may exist. As a result, the Company performed an interim quantitative assessment of its goodwill as of September 30, 2023. The Company estimated the fair value of each reporting unit using a weighted average of the fair value derived from both an income approach and a market approach (all Level 3 fair value measurements). Upon performing its assessment, the Company determined its Global Spine reporting unit's fair value exceed its carrying value of net assets as of September 30, 2023.

In the fourth quarter of 2023, the Company performed a qualitative assessment for its annual goodwill impairment analysis, which did not result in an impairment charge. This qualitative analysis considered all relevant factors specific to the reporting units,

including macroeconomic conditions, industry and market considerations, overall financial performance, and relevant entity-specific events.

In the fourth quarter of 2024, the Company performed a quantitative assessment for its annual goodwill impairment analysis, which did not result in an impairment charge. Upon performing the assessment, the Company determined the Global Spine reporting unit's fair value exceeded its carrying value and concluded there were no indicators of impairment.