CONMED CorpCNMD
CONMED Corp Segments Disclosure
Business Segment and Geographic Areas
We account and report for our business as a single operating segment entity engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company derives revenue globally and manages the business on a consolidated basis due to shared infrastructure and resources. Our chief operating decision maker ("CODM"), the President and Chief Executive Officer, evaluates the various global product portfolios on a net sales basis and evaluates profitability, investment, cash flow metrics and allocates resources on a consolidated worldwide basis.
Our product lines consist of orthopedic surgery and general surgery. Orthopedic surgery consists of sports medicine and lower extremities instrumentation and implants, small bone, large bone and specialty powered surgical instruments as well as imaging systems for use in minimally invasive surgical procedures and fees related to sales representation, promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, smoke evacuation devices, a line of cardiac monitoring products as well as electrosurgical generators and related instruments. These product lines' net sales and primary geographic market where the products are sold, are as follows for the years ended December 31, 2025, 2024 and 2023:
| 2025 | |||||||||||||||||
| Orthopedic Surgery | General Surgery | Total | |||||||||||||||
| Primary Geographic Markets | |||||||||||||||||
| United States | $ | 215,440 | $ | 559,148 | $ | 774,588 | |||||||||||
| Europe, Middle East & Africa | 142,465 | 122,189 | 264,654 | ||||||||||||||
| Asia Pacific | 130,873 | 77,849 | 208,722 | ||||||||||||||
| Americas (excluding the United States) | 85,820 | 40,940 | 126,760 | ||||||||||||||
| Total sales from contracts with customers | $ | 574,598 | $ | 800,126 | $ | 1,374,724 | |||||||||||
| 2024 | |||||||||||||||||
| Orthopedic Surgery | General Surgery | Total | |||||||||||||||
| Primary Geographic Markets | |||||||||||||||||
| United States | $ | 210,670 | $ | 537,554 | $ | 748,224 | |||||||||||
| Europe, Middle East & Africa | 132,106 | 110,958 | 243,064 | ||||||||||||||
| Asia Pacific | 119,766 | 74,918 | 194,684 | ||||||||||||||
| Americas (excluding the United States) | 81,446 | 39,597 | 121,043 | ||||||||||||||
| Total sales from contracts with customers | $ | 543,988 | $ | 763,027 | $ | 1,307,015 | |||||||||||
| 2023 | |||||||||||||||||
| Orthopedic Surgery | General Surgery | Total | |||||||||||||||
| Primary Geographic Markets | |||||||||||||||||
| United States | $ | 199,568 | $ | 500,592 | $ | 700,160 | |||||||||||
| Europe, Middle East & Africa | 127,637 | 98,616 | 226,253 | ||||||||||||||
| Asia Pacific | 123,043 | 74,358 | 197,401 | ||||||||||||||
| Americas (excluding the United States) | 82,910 | 38,020 | 120,930 | ||||||||||||||
| Total sales from contracts with customers | $ | 533,158 | $ | 711,586 | $ | 1,244,744 | |||||||||||
Sales are attributed to countries based on the location of the customer. We held $150.8 million and $139.9 million of long-lived assets in the United States at December 31, 2025 and 2024, respectively. We held $17.7 million and $22.9 million of long-lived assets in Mexico at December 31, 2025 and 2024, respectively. There were no significant investments in long-lived assets in other countries outside the United States at December 31, 2025 and 2024. No single customer represented over 10% of our consolidated net sales for the years ended December 31, 2025, 2024 and 2023.
The accounting policies of our single operating segment are the same as those described in Note 1. The CODM assesses performance for the single operating segment and decides how to allocate resources and make investment decisions based on net income, consistent with what is reported on the consolidated statements of comprehensive income. Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to CONMED’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the single segment.
The following table includes significant segment expenses for the years ended December 31, 2025, 2024 and 2023:
Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Net sales | $ | 1,374,724 | $ | 1,307,015 | $ | 1,244,744 | |||||||||||
Cost of sales(a) | 624,249 | 573,983 | 568,499 | ||||||||||||||
Salesforce and commission expense | 237,699 | 225,886 | 215,799 | ||||||||||||||
Marketing expense | 67,252 | 65,338 | 60,918 | ||||||||||||||
Distribution expense | 52,497 | 50,183 | 53,701 | ||||||||||||||
General and administrative expense | 131,963 | 117,463 | 111,235 | ||||||||||||||
Stock-based compensation expense | 28,323 | 25,558 | 24,257 | ||||||||||||||
Amortization expense | 29,188 | 28,629 | 29,068 | ||||||||||||||
| Non-cash adjustments to fair value of contingent consideration liability | 22,951 | (41,048) | (2,421) | ||||||||||||||
Research and development expense | 55,884 | 54,426 | 52,602 | ||||||||||||||
Interest expense | 31,087 | 37,297 | 39,775 | ||||||||||||||
Other expense | 418 | — | — | ||||||||||||||
Provision for income taxes | 24,062 | 30,606 | 16,369 | ||||||||||||||
Other segment items(b) | 22,096 | 6,271 | 10,483 | ||||||||||||||
Net income | $ | 47,055 | $ | 132,423 | $ | 64,459 | |||||||||||
(a)Cost of sales in 2025 includes (i) costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations; (ii) the write-off of inventory, equipment, tooling and patents related to the cancellation of planned new product lines and discontinuation of certain catalog numbers as a result of our operational optimization consultation and internal review; and (iii) a benefit resulting from the early termination of our distribution agreement with W. L. Gore & Associates, Inc.
(b)Other segment items consist of (i) consulting fees and other costs related to operational optimization in 2025; (ii) cash compensation costs related to advisory services provided by our former Chief Executive Officer in 2025; (iii) costs related to the write off of a developed technology intangible asset in 2025; (iv) third party services pertaining to review of potential issues with certain royalty payments to surgeons involved in design teams in 2025 and 2024; (v) a gain on the sale of a product line in 2025; (vi) restructuring and related costs in 2024 and 2023; (vii) income/expense related to the termination of a distributor agreement in 2024 and 2023; (viii) lease impairment costs in 2024; (ix) acquisition and integration costs in 2023; and (x) software implementation costs in 2023.
Total assets for the Company's single operating segment are the same as presented on the Company's consolidated balance sheet, which is used to measure segment performance.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 23, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.