GLOBUS MEDICAL INCGMED

GLOBUS MEDICAL INC Segments Disclosure

10-KFiled Feb 24, 20263 min read
SEGMENT AND GEOGRAPHIC INFORMATION
Operating segments are defined as components of an enterprise about which separate financial information is available that are evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Daniel T. Scavilla, our former Chief Executive Officer, was identified as our CODM until July 21, 2025, and Keith W. Pfeil, our current Chief Executive Officer, has been identified as the CODM as of July 21, 2025. The CODM determines resource allocation, investing activities, and performance assessment. The CODM uses revenue, gross profit and operating income to assess financial performance of the segments and make key operating decisions. Our CODM does not evaluate operating segments using asset or liability information.
The Company identified two operating segments, Musculoskeletal Solutions and Enabling Technologies, based on the overall management structure and business strategy. The Company aggregates these operating segments into one reportable segment, based on
conclusions reached after considering relevant factors such as economic similarity, customer base, regulatory environment, production processes, nature of services and products provided, and our comprehensive approach to product development and offerings targeting patient needs through procedural-based solutions.
The following table represents total segment revenue, significant segments expenses and other expenses for the years ended December 31, 2025, 2024 and 2023, respectively:
Year Ended
December 31,
(In thousands)202520242023
Net sales$2,938,931 $2,519,354 $1,568,476 
Cost of Sales and Operating expenses:
Cost of sales(819,124)(719,160)(404,785)
Amortization of inventory fair value step-up (a)
(19,455)(215,420)(71,656)
Depreciation related to cost of sales(119,224)(100,899)(71,733)
Research and development employee-related cost(108,357)(119,166)(95,208)
Research and development other (b)
(38,888)(44,588)(28,802)
Selling, general and administrative employee-related cost(891,617)(763,188)(514,810)
Selling, general and administrative other (c)
(210,112)(173,107)(103,858)
Provision for litigation(37,737)(314)(434)
Acquisition-related costs(42,326)(29,623)(68,274)
Amortization of intangibles(118,194)(119,373)(51,032)
Other segment expenses (d)
(50,668)(66,320)(26,880)
Operating income/(Loss)483,229 168,196 131,004 
Interest income/(expense), net7,141 (4,189)20,130 
Foreign currency transactional gain/(loss)(3,006)(43,285)14,259 
Bargain purchase gain117,704 — — 
Income/(loss) before income taxes$605,068 $120,722 $165,393 
(a)Amounts primarily related to inventory step-up associated with the NuVasive and Nevro Mergers.
(b)Amounts include In-Process Research and Development and other non-employee related costs.
(c)Amounts include non-employee related costs including taxes and fees.
(d)Amounts include restructuring expense and credit losses.

The following table represents total net sales by geographic area, based on the location of the customer for the years ended December 31, 2025, 2024 and 2023, respectively:
Net Sales
Year Ended
December 31,
(In thousands)202520242023
United States$2,367,596 $2,000,067 $1,279,765 
International571,335 519,288 288,711 
Total$2,938,931 $2,519,355 $1,568,476 
The following table represents total property and equipment, net by geographic area, based on the location of the customer:
Property and Equipment, Net
As of
December 31,
(In thousands)20252024
United States$504,719 $523,002 
International59,733 44,716 
Total$564,452 $567,718 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 20, 2025
2023Feb 21, 2024
2022Feb 21, 2023
2021Feb 17, 2022
2020Feb 17, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Mar 16, 2017
2015Feb 29, 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.

Other Available Disclosures

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