Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001876588 | |
Entity File Number | 001-41242 | |
Entity Registrant Name | ZIMVIE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-2007795 | |
Entity Address, Address Line One | 4555 Riverside Drive | |
Entity Address, City or Town | Palm Beach Gardens | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33410 | |
City Area Code | 800 | |
Local Phone Number | 342-5454 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ZIMV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,571,804 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Sales | ||||
Total Net Sales | $ 116,811 | $ 118,649 | $ 235,006 | $ 239,055 |
Cost of products sold, excluding intangible asset amortization | (43,517) | (44,465) | (87,775) | (87,340) |
Related party cost of products sold, excluding intangible asset amortization | 0 | 0 | 0 | (231) |
Intangible asset amortization | (5,999) | (6,806) | (12,022) | (13,600) |
Research and development | (6,579) | (6,458) | (13,359) | (13,688) |
Selling, general and administrative | (62,384) | (62,573) | (122,714) | (129,547) |
Restructuring and other cost reduction initiatives | (398) | (1,365) | (2,977) | (2,538) |
Acquisition, integration, divestiture and related | (4,621) | (1,370) | (5,657) | (2,711) |
Operating Expenses | (123,498) | (123,037) | (244,504) | (249,655) |
Operating Loss | (6,687) | (4,388) | (9,498) | (10,599) |
Other income (expense), net | 3,010 | (170) | 2,701 | (201) |
Interest income | 1,965 | 735 | 2,472 | 1,360 |
Interest expense | (5,066) | (5,934) | (9,940) | (11,633) |
Loss from continuing operations before income taxes | (6,778) | (9,757) | (14,265) | (21,073) |
(Provision) benefit for income taxes from continuing operations | (2,775) | 3,847 | (6,849) | (1,230) |
Net Loss from Continuing Operations of ZimVie Inc. | (9,553) | (5,910) | (21,114) | (22,303) |
Earnings (loss) from discontinued operations, net of tax | 5,539 | (17,463) | 9,339 | (31,038) |
Net Loss of ZimVie Inc. | $ (4,014) | $ (23,373) | $ (11,775) | $ (53,341) |
Basic (Loss) Earnings Per Common Share: | ||||
Continuing operations | $ (0.35) | $ (0.22) | $ (0.77) | $ (0.85) |
Discontinued operations | 0.2 | (0.67) | 0.34 | (1.17) |
Net Loss | (0.15) | (0.89) | (0.43) | (2.02) |
Diluted (Loss) Earnings Per Common Share: | ||||
Continuing operations | (0.35) | (0.22) | (0.77) | (0.85) |
Discontinued operations | 0.2 | (0.67) | 0.34 | (1.17) |
Net Loss | $ (0.15) | $ (0.89) | $ (0.43) | $ (2.02) |
Third Party Net [Member] | ||||
Net Sales | ||||
Total Net Sales | $ 116,811 | $ 118,649 | $ 235,006 | $ 238,819 |
Related Party Net [Member] | ||||
Net Sales | ||||
Total Net Sales | $ 0 | $ 0 | $ 0 | $ 236 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Loss of ZimVie Inc. | $ (4,014) | $ (23,373) | $ (11,775) | $ (53,341) |
Foreign currency cumulative translation adjustments, net of tax | 4,340 | 580 | (11,099) | 11,097 |
Total Other Comprehensive Income (Loss) | 4,340 | 580 | (11,099) | 11,097 |
Comprehensive Income (Loss) | $ 326 | $ (22,793) | $ (22,874) | $ (42,244) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 78,601 | $ 71,511 |
Accounts receivable, net of allowance for credit losses of $2,394 and $3,222, respectively | 70,526 | 65,168 |
Inventories | 71,831 | 79,600 |
Prepaid expenses and other current assets | 19,504 | 23,825 |
Current assets of discontinued operations | 33,391 | 242,773 |
Total Current Assets | 273,853 | 482,877 |
Property, plant and equipment, net of accumulated depreciation of $129,165 and $126,624, respectively | 50,394 | 54,167 |
Goodwill | 259,769 | 262,111 |
Intangible assets, net | 103,038 | 114,354 |
Note receivable | 60,270 | 0 |
Other assets | 29,862 | 26,747 |
Noncurrent assets of discontinued operations | 12,600 | 265,089 |
Total Assets | 789,786 | 1,205,345 |
Current Liabilities: | ||
Accounts payable | 27,160 | 27,785 |
Income taxes payable | 2,498 | 2,863 |
Other current liabilities | 61,685 | 67,108 |
Current liabilities of discontinued operations | 49,781 | 75,858 |
Total Current Liabilities | 141,124 | 173,614 |
Deferred income taxes | 57 | 265 |
Lease liability | 9,835 | 9,080 |
Other long-term liabilities | 9,171 | 9,055 |
Non-current portion of debt | 235,110 | 508,797 |
Noncurrent liabilities of discontinued operations | 390 | 95,041 |
Total Liabilities | 395,687 | 795,852 |
Commitments and Contingencies (Note 12) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, 150,000 shares authorized Shares, issued and outstanding, of 27,571 and 27,076, respectively | 276 | 271 |
Preferred stock, $0.01 par value, 15,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Additional paid in capital | 930,471 | 922,996 |
Accumulated deficit | (452,589) | (440,814) |
Accumulated other comprehensive loss | (84,059) | (72,960) |
Total Stockholders' Equity | 394,099 | 409,493 |
Total Liabilities and Stockholders' Equity | $ 789,786 | $ 1,205,345 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Equity, Attributable to Parent [Abstract] | ||
Accounts receivable, net of allowance for credit loss, current | $ 2,394 | $ 3,222 |
Property, plant and equipment, net of accumulated depreciation | $ 129,165 | $ 126,624 |
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 27,571,000 | 27,076,000 |
Common stock, shares outstanding | 27,571,000 | 27,076,000 |
Preferred stock, par or stated value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2022 | $ 758,604 | $ 262 | $ 897,028 | $ (47,532) | $ (91,154) |
Net loss | (53,341) | 0 | 0 | (53,341) | 0 |
Stock plan activity | 826 | 3 | 823 | 0 | 0 |
Share-based compensation expense | 10,656 | 0 | 10,656 | 0 | 0 |
Other comprehensive (loss) income | 11,097 | 0 | 0 | 0 | 11,097 |
Ending Balance at Jun. 30, 2023 | 727,842 | 265 | 908,507 | (100,873) | (80,057) |
Beginning Balance at Mar. 31, 2023 | 743,603 | 264 | 901,476 | (77,500) | (80,637) |
Net loss | (23,373) | 0 | 0 | (23,373) | 0 |
Stock plan activity | 1,217 | 1 | 1,216 | 0 | 0 |
Share-based compensation expense | 5,815 | 0 | 5,815 | 0 | 0 |
Other comprehensive (loss) income | 580 | 0 | 0 | 0 | 580 |
Ending Balance at Jun. 30, 2023 | 727,842 | 265 | 908,507 | (100,873) | (80,057) |
Beginning Balance at Dec. 31, 2023 | 409,493 | 271 | 922,996 | (440,814) | (72,960) |
Net loss | (11,775) | 0 | 0 | (11,775) | 0 |
Stock plan activity | (1,670) | 5 | (1,675) | 0 | 0 |
Share-based compensation expense | 9,150 | 0 | 9,150 | 0 | 0 |
Other comprehensive (loss) income | (11,099) | 0 | 0 | 0 | (11,099) |
Ending Balance at Jun. 30, 2024 | 394,099 | 276 | 930,471 | (452,589) | (84,059) |
Beginning Balance at Mar. 31, 2024 | 388,329 | 273 | 925,030 | (448,575) | (88,399) |
Net loss | (4,014) | 0 | 0 | (4,014) | 0 |
Stock plan activity | (232) | 3 | (235) | 0 | 0 |
Share-based compensation expense | 5,676 | 0 | 5,676 | 0 | 0 |
Other comprehensive (loss) income | 4,340 | 0 | 0 | 0 | 4,340 |
Ending Balance at Jun. 30, 2024 | $ 394,099 | $ 276 | $ 930,471 | $ (452,589) | $ (84,059) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows used in operating activities: | ||
Net Loss of ZimVie Inc. | $ (11,775) | $ (53,341) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 16,917 | 64,588 |
Share-based compensation | 9,150 | 10,656 |
Deferred income tax provision | (3,458) | (7,935) |
Loss on disposal of fixed assets | 430 | 1,129 |
Other non-cash items | 2,370 | 1,380 |
Gain on sale of spine disposal group (Note 2) | (22,427) | 0 |
Changes in operating assets and liabilities | ||
Income taxes | 5,706 | (16,023) |
Accounts receivable | (8,648) | 1,271 |
Related party receivable | 0 | 8,483 |
Inventories | 10,580 | 8,401 |
Prepaid expenses and other current assets | (927) | (2,097) |
Accounts payable and accrued liabilities | (6,206) | (4,825) |
Related party payable | 0 | (13,177) |
Other assets and liabilities | (187) | (5,450) |
Net cash used in operating activities | (8,475) | (6,940) |
Cash flows provided by (used in) investing activities: | ||
Additions to instruments | (1,316) | (1,951) |
Additions to other property, plant and equipment | (2,093) | (3,154) |
Proceeds from sale of spine disposal group, net of cash disposed | 291,123 | 0 |
Other investing activities | (2,015) | (1,994) |
Net cash provided by (used in) investing activities | 285,699 | (7,099) |
Cash flows used in financing activities: | ||
Proceeds from debt | 0 | 4,760 |
Payments on debt | (275,000) | (15,279) |
Payments related to tax withholding for share-based compensation | (1,670) | (419) |
Proceeds from stock plan activity | 0 | 1,167 |
Net cash used in financing activities | (276,670) | (9,771) |
Effect of exchange rates on cash and cash equivalents | (5,627) | 421 |
Decrease in cash and cash equivalents | (5,073) | (23,389) |
Cash and cash equivalents, beginning of year | 87,768 | 89,601 |
Cash and cash equivalents, end of period | 82,695 | 66,212 |
Supplemental cash flow information: | ||
Income taxes paid, net | 3,340 | 18,755 |
Interest paid | 14,143 | 17,452 |
Promissory note receivable issued in connection with the sale of spine disposal group | 60,000 | 0 |
Interest received-in-kind | $ 1,500 | $ 0 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background, Nature of Business
Background, Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Nature of Business and Basis of Presentation | 1. Background, Nature of Business and Basis of Presentation Background On March 1, 2022, ZimVie Inc. ("ZimVie," "we," "us" and "our") and Zimmer Biomet Holdings, Inc. ("Zimmer Biomet") entered into a Separation and Distribution Agreement (the "Separation Agreement"), pursuant to which Zimmer Biomet agreed to spin off its spine and dental businesses into ZimVie . The distribution resulted in ZimVie becoming a standalone, publicly traded company. Following the distribution, Zimmer Biomet initially retained 19.7 % of the outstanding shares of ZimVie common stock, and all transactions between ZimVie and Zimmer Biomet from the distribution to February 1, 2023 were reported as related party transactions. As of February 1, 2023, Zimmer Biomet had sold all of its 19.7 % ownership in ZimVie and is no longer considered a related party. As such, transactions with Zimmer Biomet subsequent to February 1, 2023 are reported as third party transactions. See Note 17 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 ("Annual Report") for further description of the impact of the distribution and post-spin activities with Zimmer Biomet. On December 15, 2023, we entered into a definitive agreement to sell our spine segment to an affiliate of H.I.G. Capital (the "Buyer") for $ 375 million in total consideration, comprised of $ 315 million in cash, subject to certain customary adjustments as set forth in the agreement, and $ 60 million in the form of a promissory note that accrues interest at a rate of 10 % per annum, compounded semi-annually, and interest is payable in kind. On April 1, 2024, we completed the sale of our spine segment for a total purchase price of $ 377.2 million (inclusive of $ 2.2 million in preliminary closing adjustments), subject to certain customary adjustments as set forth in the agreement, and received proceeds of $ 311.8 million, excluding the promissory note and transaction costs , but including cash disposed of $ 26.1 million . See Notes 2 and 7 for additional discussion. Nature of Business ZimVie is a leading medical technology company dedicated to enhancing the quality of life for dental patients worldwide. We develop, manufacture and market a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures. We are well-positioned in the growing global dental implant, biomaterials and digital dentistry market with a strong presence in the tooth replacement market with market leading positions in certain geographies. Prior to the closing of the sale of our spine segment, o ur operations were principally managed on a products basis and included two operating segments, 1) the dental products segment, and 2) the spine products segment. Since the sale of our spine segment, our core services include designing, manufacturing and distributing dental implant systems. Dental reconstructive implants are for individuals who are totally without teeth or are missing one or more teeth, dental prosthetic products are aimed at providing a more natural restoration to resemble the original teeth, and dental regenerative products are for soft tissue and bone rehabilitation. Our key products include the T3® Implant, Tapered Screw-Vent Implant System, Trabecular Metal Dental Implant, BellaTek Encode Impression System and Puros Allograft Particulate. Prior to the sale of our spine segment, the core services of our spine segment included designing, manufacturing and distributing medical devices and surgical instruments to deliver comprehensive solutions for individuals with back or neck pain caused by degenerative conditions, deformities or traumatic injury of the spine. We also provided devices that promote bone healing. Other differentiated products in our spine portfolio included Mobi-C® Cervical Disc, a motion-preserving alternative to fusion for patients with cervical disc disease, and The Tether, a novel non-fusion device for treatment of pediatric scoliosis. Basis of Presentation The accompanying condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of shareholders' equity for the three and six months ended June 30, 2024 and 2023, and the condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023, of ZimVie are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for the fair statement of such condensed consolidated financial statements have been made. The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 ("Quarterly Report") are presented as permitted by Regulation S-X and do not contain certain information included in our annual financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements presented in our Annual Report . During the three months ended March 31, 2024, we recorded out of period adjustments that increased the Loss from continuing operations before income taxes and reduced Earnings from discontinued operations, net of tax, by $ 1.8 million and $ 0.7 million, respective ly. We have concluded these out of period adjustments did not have a material impact on our interim condensed consolidated financial statements for the three months ended March 31, 2024 or six months ended June 30, 2024, nor were they material to previously issued interim and annual consolidated financial statements. Restricted Cash - As of both June 30, 2024 and December 31, 2023, we had $ 1.5 million in restricted cash. The restriction as of June 30, 2024 and December 31, 2023 is on cash held in China as a result of ongoing litigation with a spine products distributor in China related to our decision to exit our spine products business in China. Sale of Spine Segment The historical results of our spine segment have been reflected as discontinued operations in our condensed consolidated financial statements as the sale represents a strategic shift in our business that had a major effect on operations and financial results. The assets and liabilities associated with this segment are classified as assets and liabilities of discontinued operations in the condensed consolidated balance sheets. The disclosures presented in the notes to the condensed consolidated financial statements are presented on a continuing operations basis, unless otherwise noted. Accounting Pronouncements Recently Issued In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative . This ASU amends the interim and annual disclosure requirements related to a variety of subtopics in the Accounting Standards Codification, including those focusing on accounting changes, earnings per share, debt and repurchase agreements. The guidance will be applied prospectively. The effective date for each amendment will be the date when the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are currently evaluating the effect of this ASU, but we do not expect it will have a material impact on our condensed consolidated financial statements or disclosures. In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The key amendments require disclosure of significant segment expenses on an annual and interim basis that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, including other segment items by reportable segment and a description of their composition, and to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB Topic 280, Segment Reporting, in interim periods as well. This ASU includes certain clarifications for measuring a segment's profit or loss in assessment by the CODM, disclosure of title and position of the CODM and an explanation of how the CODM uses the reported measures in assessing segment performance and deciding how to allocate resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We do not expect the adoption of this ASU to affect our financial position or our results of operations, but expect it will result in additional disclosures. In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments included in the ASU related to rate reconciliation, income taxes paid disclosures and other disclosures requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2024. We are currently in the process of evaluating the effect of this ASU. In March 2024, the SEC adopted final rules requiring public entities to provide certain climate-related information in their registration statements and annual reports. As part of the disclosures, entities will be required to quantify certain effects of severe weather events and other natural conditions in a note to their consolidated financial statements. While the SEC voluntarily stayed the rules due to pending judicial review, the rules in their current form would be effective for accelerated filers for annual periods beginning after December 15, 2025. We are currently in the process of evaluating the effect of these final rules. Other recently issued ASUs, excluding ASUs discussed above, were assessed and determined to be not applicable, or are not expected to have a material impact on our condensed consolidated financial statements or disclosures. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations As discussed in Note 1, on December 15, 2023, we entered into a definitive agreement to sell our spine segment. The historical financial condition and results of operations of our spine segment have been reflected as discontinued operations in our condensed consolidated financial statements. The assets and liabilities associated with this segment are classified as assets and liabilities of discontinued operations in the condensed consolidated balance sheets. On April 1, 2024, we completed the sale of our spine segment for a total purchase price of $ 377.2 million (inclusive of $ 2.2 million in preliminary closing adjustments), subject to certain customary adjustments as set forth in the agreement, and received proceeds of $ 311.8 million, excluding the promissory note and transaction costs, but including cash disposed of $ 26.1 million. We recognized a gain on the sale of $ 11.3 million, which is included in Earnings (loss) from discontinued operations and primarily related to transaction costs incurred related to the sale. The transfer of spine business activities in certain jurisdictions ("Delayed Transfer Locations") is deferred until the Buyer has met various legal and regulatory requirements in those jurisdictions. Until such transfer, we continue to control and operate these Delayed Transfer Locations and therefore we continue to consolidate the assets and liabilities and results of operations within discontinued operations in the condensed consolidated balance sheet and statement of operations. Details of the assets and liabilities and results of operations not transferred to the Buyer as of June 30, 2024 are included below. Net profit or loss of the Delayed Transfer Locations are transferred to the Buyer on a monthly basis. The net profit or loss to be transferred to the Buyer is included in Other expense, net within discontinued operations. We currently expect the Delayed Transfer Locations to be transferred within one year of the closing date of the sale. We expect to recognize adjustments to the gain on sale of the spine disposal group as the spine business in each deferred jurisdiction is transferred to the Buyer. In conjunction with the sale of our spine segment, we entered into a Transition Services Agreement ("TSA") to provide certain support services for up to 12 months from the closing date of the sale. These services include, among others, accounting, information technology, human resources, quality assurance, regulatory affairs and customer support. Income recognized related to the TSA is recorded as Other income in our condensed consolidated statements of operations. Details of earnings (loss) from discontinued operations included in our condensed consolidated statement of operations are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net Sales Third party, net $ 14,575 $ 106,247 $ 108,399 $ 211,165 Related party, net — — — 103 Total Net Sales 14,575 106,247 108,399 211,268 Cost of products sold, excluding intangible asset amortization ( 6,053 ) ( 30,035 ) ( 34,494 ) ( 57,877 ) Related party cost of products sold, excluding intangible asset amortization — — — ( 97 ) Intangible asset amortization — ( 13,857 ) — ( 27,572 ) Research and development ( 437 ) ( 6,773 ) ( 7,012 ) ( 14,916 ) Selling, general and administrative ( 8,097 ) ( 65,907 ) ( 62,219 ) ( 126,902 ) Restructuring and other cost reduction initiatives ( 43 ) ( 7,080 ) ( 1,894 ) ( 10,882 ) Acquisition, integration, divestiture and related ( 5,397 ) ( 26 ) ( 11,770 ) ( 368 ) Other expense, net ( 301 ) 768 ( 644 ) ( 107 ) Interest expense, net (1) ( 988 ) ( 3,806 ) ( 6,282 ) ( 7,698 ) Loss from discontinued operations before income taxes ( 6,741 ) ( 20,469 ) ( 15,916 ) ( 35,151 ) Adjustment of spine disposal group to fair value (2) — — 11,143 — Gain on sale of spine disposal group 11,284 — 11,284 — Benefit for income taxes from discontinued operations 996 3,006 2,828 4,113 Earnings (loss) from discontinued operations, net of tax $ 5,539 $ ( 17,463 ) $ 9,339 $ ( 31,038 ) (1) A portion of the interest on our Term Loan (as defined and described in Note 8) has been allocated to discontinued operations consistent with the amount of proceeds used to repay a portion of the amounts outstanding under our Term Loan in accordance with our Credit Agreement (as defined and described in Note 8). (2) We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $ 289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale , which resulted in a reduction of the December 2023 write-down of $ 11.1 million . Details of assets and liabilities of discontinued operations are as follows (in thousands): As of June 30, 2024 December 31, 2023 Cash and cash equivalents $ 4,094 $ 16,257 Accounts receivable, less allowance for credit losses 15,026 83,871 Inventories 14,139 130,430 Prepaid expenses and other current assets 132 12,215 Total Current Assets of Discontinued Operations 33,391 242,773 Property, plant and equipment, net 11,280 62,692 Intangible assets, net — 477,110 Other assets 1,320 14,743 Total Noncurrent Assets of Discontinued Operations 12,600 554,545 Accounts payable 1,128 24,186 Income taxes payable 133 410 Other current liabilities (1) 48,520 51,262 Total Current Liabilities of Discontinued Operations 49,781 75,858 Deferred income taxes — 86,037 Lease liability 291 8,032 Other long-term liabilities 99 972 Total Noncurrent Liabilities of Discontinued Operations 390 95,041 Adjustment of spine disposal group to fair value (2) — ( 289,456 ) (1) Includes non-cash liability of $ 40.8 million that represents the net assets of the Delayed Transfer Locations. (2) This adjustment is reflected in Noncurrent assets of discontinued operations in the condensed consolidated balance sheets. Cash flows attributable to discontinued operations are included on our condensed consolidated statements of cash flows. Significant non-cash operating and investing activities attributable to discontinued operations consisted of the following (in thousands): For the Six Months Ended June 30, 2024 2023 Depreciation and amortization $ 24 $ 46,946 Share-based compensation 712 1,237 Gain on sale of spine disposal group ( 22,427 ) — Additions to instruments 1,316 1,951 Additions to other property, plant and equipment 88 554 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 3. Goodwill and Other Intangible Assets The following table summarizes the changes in the carrying amount of goodwill by historical reportable segment (in thousands): Total Balance at December 31, 2023 Goodwill, Gross $ 404,111 Accumulated impairment losses ( 142,000 ) Goodwill, Net 262,111 Currency translation ( 2,342 ) Balance at June 30, 2024 Goodwill, Gross 401,769 Accumulated impairment losses ( 142,000 ) Goodwill, Net $ 259,769 The components of identifiable intangible assets were as follows (in thousands): Technology Trademarks Customer Relationships Other Total As of December 31, 2023: Intangible assets subject to amortization: Gross carrying amount $ 168,841 $ 37,056 $ 143,565 $ 47,670 $ 397,132 Accumulated amortization ( 113,354 ) ( 23,393 ) ( 98,361 ) ( 47,670 ) ( 282,778 ) Total identifiable intangible assets $ 55,487 $ 13,663 $ 45,204 $ — $ 114,354 As of June 30, 2024: Intangible assets subject to amortization: Gross carrying amount $ 168,770 $ 36,706 $ 140,655 $ 47,534 $ 393,665 Accumulated amortization ( 117,597 ) ( 24,607 ) ( 101,889 ) ( 46,534 ) ( 290,627 ) Total identifiable intangible assets $ 51,173 $ 12,099 $ 38,766 $ 1,000 $ 103,038 Estimated annual amortization expense for the years ending December 31, 2024 through 2028 based on exchange rates in effect at December 31, 2023 is as follows (in millions): For the Years Ending December 31, 2024 (remaining) $ 12.2 2025 22.2 2026 22.2 2027 16.9 2028 11.8 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 4. Share-Based Compensation Conversion Awards At the time of separation, Zimmer Biomet had share-based compensation plans under which it granted stock options, restricted stock units ("RSUs") and performance-based RSUs . In connection with the distribution, ZimVie employees with outstanding Zimmer Biomet share-based awards received replacement share-based awards. The ratio used to convert the Zimmer Biomet share-based awards was designed to preserve the aggregate intrinsic value of the award immediately after the distribution when compared to the aggregate intrinsic value of the award immediately prior to the distribution. Outstanding RSUs and performance-based RSUs were converted into 0.3 million ZimVie RSUs at a weighted average fair value of $ 31.55 , and outstanding stock options were converted into 2.1 million ZimVie stock options at a weighted average fair value of $ 14.76 . Due to the conversion, ZimVie incurred $ 21.3 million of incremental share-based compensation expense. Of this amount, $ 10.3 million was related to unvested and/or unexercised share-based awards and was recognized at the distribution date. The remaining $ 11.0 million is being recognized over the remainder of the share-based awards' weighted average vesting period of 2.5 years from the date of the distribution. ZimVie Awards The ZimVie Inc. 2022 Stock Incentive Plan was established effective as of March 1, 2022, and was amended effective May 12, 2023 (as amended, the "2022 Plan"). A total of 6.0 million shares of common stock are authorized for issuance under the 2022 Plan. Shares issued pursuant to converted Zimmer Biomet share-based awards do not count against this limit. At June 30, 2024, 3.6 million shares were available for future grants and awards under the 2022 Plan. The 2022 Plan provides for the grant of various types of awards including stock options, stock appreciation rights, performance shares, performance units, restricted stock and RSUs. Generally, awards have a three-year vesting period and stock options have a term of ten years . Vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met. Additionally, in cases of special circumstances as determined by the Compensation Committee of the Board of Directors, the Compensation Committee may, it its sole discretion, accelerate vesting. We recognize expense on a straight-line basis over the requisite service period, less awards expected to be forfeited using estimated forfeiture rates. Stock options are granted with an exercise price equal to the market price of our common stock on the date of grant, except in limited circumstances where local law may dictate otherwise. Share-based compensation expense was as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Share-based compensation expense recognized in: Cost of products sold, excluding intangible asset amortization $ 364 $ 303 $ 346 $ 569 Research and development 433 383 835 805 Selling, general and administrative 4,879 5,129 7,969 9,282 5,676 5,815 9,150 10,656 Tax benefit related to awards ( 1,454 ) ( 1,471 ) ( 2,313 ) ( 2,680 ) Total expense, net of tax $ 4,222 $ 4,344 $ 6,837 $ 7,976 Share-based compensation expense related to discontinued operations is included in the table above and is disclosed in Note 2. Stock option activity was as follows: For the Six Months Ended June 30, 2024 Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Stock Options Price Life (Years) Value (in Millions) Outstanding at December 31, 2023 2,303,143 $ 26.83 Exercised ( 1,117 ) 18.58 Forfeited ( 542,887 ) 26.04 Outstanding at June 30, 2024 1,759,139 $ 27.09 5.6 $ — Exercisable at June 30, 2024 1,464,463 $ 26.87 5.3 $ — We used a Black-Scholes option-pricing model to determine the fair value of our stock options. For awards granted shortly after the distribution: expected volatility of 52.29 % was derived from a peer group's combined historical volatility that was de-levered and re-levered for ZimVie as ZimVie did not have sufficient historical volatility based on the expected term of the underlying options; the expected term of the stock options of 6.0 years was determined using the simplified method; and the risk-free interest rate of 1.94 % was determined using the implied yield then available for zero-coupon United States ("U.S.") government issues with a remaining term approximating the expected life of the options. The dividend yield was zero as ZimVie has no plans to pay a dividend for the foreseeable future. Aggregate intrinsic value was negligible at June 30, 2024. At June 30, 2024, we had unrecognized share-based compensation cost related to unvested stock options of $ 2.9 million , which is expected to be amortized over the remaining weighted average vesting period of less than one year . RSU activity was as follows: For the Six Months Ended June 30, 2024 Weighted Average Number of Grant Date RSUs Fair Value Outstanding at December 31, 2023 1,942,210 $ 15.13 Granted 797,869 17.52 Vested ( 532,484 ) 20.36 Forfeited ( 393,808 ) 13.06 Outstanding at June 30, 2024 1,813,787 $ 15.09 RSUs outstanding at June 30, 2024 included 289,310 RSUs (at target) with performance-based vesting provisions ("PRSUs"). PRSUs may vest from 0 - 150 % of target based on the level of achievement of pre-defined performance metrics. PRSUs are payable in common shares and do not have the right to vote until vested. Compensation expense related to PRSUs is recognized over a 36-month cliff vesting period, and is adjusted as needed for changes in the projected level of achievement of the performance metrics. At June 30, 2024, we had unrecognized share-based compensation cost related to unvested RSUs of $ 16.7 million , which is expected to be amortized into earnings over the remaining weighted average vesting period of approximately 1.4 years. The total fair value of RSUs granted during the six months ended June 30, 2024 and 2023 was $ 14.0 million and $ 15.8 million, respectively. The total fair value of RSUs that vested during the six months ended June 30, 2024 and 2023 was $ 10.8 million and $ 6.2 million , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. Earnings Per Share The calculation of weighted average shares for basic and diluted net loss per common share is as follows (in thousands, except per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net Loss from Continuing Operations of ZimVie Inc. $ ( 9,553 ) $ ( 5,910 ) $ ( 21,114 ) $ ( 22,303 ) Earnings (loss) from discontinued operations, net of tax 5,539 ( 17,463 ) 9,339 ( 31,038 ) Net Loss of ZimVie Inc. $ ( 4,014 ) $ ( 23,373 ) $ ( 11,775 ) $ ( 53,341 ) Weighted average shares outstanding for basic net loss per common share 27,405 26,328 27,265 26,343 Effect of dilutive stock options and other equity awards (1) — — — — Weighted average shares outstanding for diluted net loss per common share 27,405 26,328 27,265 26,343 Basic (Loss) Earnings Per Common Share: Continuing operations $ ( 0.35 ) $ ( 0.22 ) $ ( 0.77 ) $ ( 0.85 ) Discontinued operations 0.20 ( 0.67 ) 0.34 ( 1.17 ) Net Loss $ ( 0.15 ) $ ( 0.89 ) $ ( 0.43 ) $ ( 2.02 ) Diluted (Loss) Earnings Per Common Share: Continuing operations $ ( 0.35 ) $ ( 0.22 ) $ ( 0.77 ) $ ( 0.85 ) Discontinued operations 0.20 ( 0.67 ) 0.34 ( 1.17 ) Net Loss $ ( 0.15 ) $ ( 0.89 ) $ ( 0.43 ) $ ( 2.02 ) (1) Since we incurred a net loss in each of the three months ended June 30, 2024 and 2023 and the six months ended June 30, 202 4 and 2023, no dilutive stock options or other equity awards were included as diluted shares in those periods. For the three months ended June 30, 2024 and 2023 , a weighted average of 2.5 million and 4.0 million, respectively, and for the six months ended June 30, 2024 and 2023, a weighted average of 2.0 million and 3.7 million, respectively, options to purchase shares of common stock were not included in the computation of diluted net loss per share as the exercise prices of these options were greater than the average market price of the common stock. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Details | 6. Balance Sheet Details Inventories consisted of the following (in thousands): June 30, 2024 December 31, 2023 Finished goods $ 47,492 $ 54,456 Work-in-progress 19,592 20,659 Raw materials 4,747 4,485 Inventories $ 71,831 $ 79,600 Amounts related to cost of products sold in the condensed consolidated statements of operations for excess and obsolete inventory, were $ 0.6 million and $ 0.5 million in the three months ended June 30, 2024 and 2023 , respectively, and were $ 1.1 million and $ 0.9 million in the six months ended June 30, 2024 and 2023, respectively. Other current liabilities consisted of the following (in thousands): June 30, 2024 December 31, 2023 Other current liabilities: Salaries, wages and benefits $ 23,252 $ 23,171 Lease liabilities 4,259 4,053 Other liabilities 34,174 39,884 Total other current liabilities $ 61,685 $ 67,108 |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | 7. Fair Value Measurements of Assets and Liabilities The fair value of foreign currency exchange forward contracts (see Note 9) are determined using Level 2 inputs. The carrying value of our debt (see Note 8) approximates fair value as it bears interest at floating rates. The carrying amounts of other financial instruments (i.e., cash and cash equivalents, restricted cash, bank time deposits, accounts receivable, net, and accounts payable) approximated their fair values at June 30, 2024 and December 31, 2023 due to their short-term nature. As discussed in Notes 1 and 2, on April 1, 2024, we completed the sale of the spine segment. A portion of the consideration was in the form of a $ 60.0 million promissory note that accrues interest at a rate of 10 % per annum, compounded semi-annually and interest is payable in kind. The note matures on October 1, 2029, contains change of control provisions and allows for optional prepayment at any time. Including consideration of paid-in-kind interest, the fair value of the note was $ 60.3 million as of June 30, 2024, which was determined using a discounted cash flow analysis , where contractual cash flows were discounted to present value at a risk-adjusted rate of return. The fair value of the note is determined each period by applying the same approach, considering changes to the risk-adjusted rate of return given observed changes to the interest rate environment, market pricing of credit risk and issuer-specific credit risk. The fair values of acquisition-related contingent payments are estimated using Level 3 inputs. Contingent payments related to acquisitions consist of sales-based payments and are valued using discounted cash flow techniques. The fair value of sales-based payments is based upon probability-weighted future revenue estimates and increases as revenue estimates increase. The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands): Level 3 - Liabilities Contingent payments related to acquisitions Balance December 31, 2023 $ 9,799 Settlements ( 2,963 ) Balance June 30, 2024 $ 6,836 In July 2024, we made a contingent payment of $ 2.3 million related to prior acquisitions. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Our debt consisted of the following (in thousands): June 30, 2024 December 31, 2023 Term loan $ 236,912 $ 511,912 Debt issuance costs ( 1,802 ) ( 3,115 ) Total debt 235,110 508,797 Less: current portion — — Total debt due after one year $ 235,110 $ 508,797 We entered into a Credit Agreement, dated as of December 17, 2021 (the “Credit Agreement”), with JP Morgan Chase Bank, N.A., as administrative agent and syndication agent, and the lenders and issuing banks named therein. The Credit Agreement provides for revolving loans of up to $ 175.0 million (the “Revolver”) and term loan borrowings of up to $ 595.0 million (the “Term Loan” and, together with the Revolver, the “Credit Facility”). As of June 30, 2024, $ 236.9 million was outstanding on the Term Loan, and there were no outstanding borrowings under the Revolver. On April 1, 2024, we prepaid $ 275.0 million on the Term Loan using proceeds from the sale of our spine segment (as discussed in Notes 1 and 2), and we wrote off $ 0.9 million of debt issuance costs. As a result of this prepayment, we have no more scheduled quarterly amortization payments on the Term Loan, and the remaining balance is due at maturity on February 28, 2027. As of June 30, 2024, our interest rate was the secured overnight financing rate plus the applicable margin of 1.75 % for term benchmark borrowings. Commitments under the Revolver are s ubject to a commitment fee on the unused portion of the Revolver of 25 basis points. Borrowings under the Credit Facility are collateralized by substantially all of our personal property, including intellectual property and certain real property, and we, along with our subsidiaries party to the Credit Facility, pledged our equity interests in our subsidiaries, subject to materiality thresholds and certain limitations with respect to foreign subsidiaries. The Credit Facility contains various covenants that restrict our ability to take certain actions, including incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, making certain investments, prepayments or redemptions of subordinated debt, or making certain restricted payments. In addition, the Credit Facility contains financial covenants that require us to maintain a maximum consolidated total net leverage ratio of 6.00 to 1.00 . We were in compliance with all covenants as of June 30, 2024. See Note 9 to our consolidated financial statements included in our Annual Report for additional information on our Credit Agreement. In April 2023, we financed $ 4.8 million of our corporate insurance premium, all of which was repaid by June 30, 2023. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivatives [Abstract] | |
Derivatives | 9. Derivatives We enter into foreign currency exchange forward contracts with terms of one to three months in order to manage currency exposures related to monetary assets and liabilities denominated in a currency other than an entity’s functional currency. Any foreign currency remeasurement gains or losses recognized in earnings are generally offset with gains or losses on the foreign currency exchange forward contracts in the same reporting period. Outstanding contracts are recorded in our condensed consolidated balance sheet at fair value as of the end of the reporting period. The aggregate notional amounts of these contracts wer e $ 30.0 million as of June 30, 2024 a nd $ 25.0 million as of December 31, 2023. Current derivative assets of a negligible amount and $ 0.4 million as of June 30, 2024 and December 31, 2023 , respectively, were included in Prepaid expenses and other current assets on our condensed consolidated balance sheets. Current derivative liabilities of $ 0.4 million and $ 0.2 million as of June 30, 2024 and December 31, 2023, respectively, were included in Other current liabilities in our condensed consolidated balance sheets. (Losses) gains from these derivative instruments recognized in our condensed consolidated statements of operations in Other income (expense) , net were $( 0.3 ) million and $ 0.3 million for the three months ended June 30, 2024 and 2023, respectively, and were $( 0.4 ) million and $ 0.5 million for the six months ended June 30, 2024 and 2023 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxe s Our effective tax rate (“ETR”) on loss before income taxes was ( 40.9 )% and 39.4 % for the three months ended June 30, 2024 and 2023 , respectively, and ( 48.0 %) and ( 5.8 %) for the six months ended June 30, 2024 and 2023, respectively. In the three and six months ended June 30, 2024, the income tax provision was lower than the 21 % statutory rate due to losses not benefited as a result of valuation allowances and unfavorable U.S. taxable income modifications such as Global Intangible Low Taxed Income ("GILTI") and shortfalls on stock compensation. In the three months ended June 30, 2023, the income tax benefit was higher than the 21 % statutory rate due to releases in prior year valuation allowances primarily driven by method changes in accounting for inventories for tax purposes in the U.S. In the six months ended June 30, 2023, the income tax provision was lower than the 21 % U.S. federal statutory rate due to losses in certain jurisdictions with full valuation allowances resulting in no tax benefit. |
Segment Data
Segment Data | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Data | 11. Segment Data Our Chief Executive Officer is our Chief Operating Decision Maker. He allocates resources to achieve our operating profit goals and historically reviewed business performance through two operating segments, 1) the dental segment, and 2) the spine segment, which also represented our reportable segments. As discussed in Notes 1 and 2, the spine segment is presented as discontinued operations and is not required to be presented in the segment disclosures. Following the sale of our spine segment on April 1, 2024, we operate as a single segment. We conduct business in the following countries that hold 10% or more of our total combined property, plant and equipment, net (in thousands): As of June 30, 2024 December 31, 2023 U.S. $ 32,554 $ 35,444 Spain 14,177 14,431 Other countries 3,663 4,292 Property, plant and equipment, net $ 50,394 $ 54,167 U.S. and foreign sales (based on the location of the customer) are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 U.S. $ 69,316 $ 69,264 $ 137,064 $ 139,171 Spain 12,821 12,894 28,168 28,620 Other countries 34,674 36,491 69,774 71,028 Third party sales $ 116,811 $ 118,649 $ 235,006 $ 238,819 Sales within any other individual country were less than 10 % of our combined sales in each of those periods. No single customer accounted for 10% or more of our sales in the three and six months ended June 30, 2024 and 2023 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies We are subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial and other matters that arise in the normal course of business. On a quarterly and annual basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. We record liabilities for loss contingencies when it is probable that a loss has been incurred and the amount can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. The recorded accrual balance for loss contingencies was $ 1.2 million and $ 2.6 million as of June 30, 2024 and December 31, 2023, respectively. The decline in the balance was primarily due to loss contingencies that were transferred as part of the sale of the spine segment on April 1, 2024 discussed in Notes 1 and 2. Initiation of new legal proceedings or a change in the status of existing proceedings may result in a change in the estimated loss accrued. Subject to certain exceptions specified in the Separation Agreement, we assumed the liability for, and control of, all pending and threatened legal matters related to our business, including liabilities for any claims or legal proceedings related to products that had been part of our business, but were discontinued prior to the distribution, as well as assumed or retained liabilities, and will indemnify Zimmer Biomet for any liability arising out of or resulting from such assumed legal matters. |
Restructuring and Other Cost Re
Restructuring and Other Cost Reduction Initiatives | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Cost Reduction Initiatives | 13. Restructuring and Other Cost Reduction Initiatives In January 2024, we initiated restructuring activities to better structure the organization to support our dental segment after the disposal of the spine segment. During the three and six months ended June 30, 2024, we recorded pre-tax charges of $ 0.4 million and $ 2.8 million, respectively related to these activities. The restructuring charges incurred under this plan were primarily related to employee termination benefits. We anticipate total charges of approximately $ 4 million related to this plan. In April and July 2023, we initiated restructuring activities to better position our organization for future success based on the then-current business environment. These activities had the objective of reducing our global cost structure and streamlining our organizational infrastructure across all regions, functions and levels. During the three and six months ended June 30, 2024 the charges recorded under this plan were negligible. During the three and six months ended June 30, 2023 the pre-tax charges recorded under this plan were $ 1.4 million and $ 2.5 million , respectively, primarily related to employee termination fees and professional fees. We have incurred pre-tax charges of $ 4.1 million from inception through June 30, 2024 and we do not expect to incur future charges under this plan. In June 2022, we initiated a restructuring plan with the objective of reducing costs and optimizing our global footprint. During the three and six months ended June 30, 2024 , the pre-tax charges recorded under this plan were negligible and $ 0.2 million, respectively, primarily related to employee termination benefits. During the three and six months ended June 30, 2023 , actions under this plan resulted in pre-tax charges that were negligible. We have incurred pre-tax charges of $ 3.0 million from inception through June 30, 2024, and we do not expect to incur future charges under this plan. The following table summarizes the liabilities directly attributable to us that were recognized under the plans discussed above and excludes non-cash charges (in thousands): Six Months Ended June 30, Employee Other Total Balance, December 31, 2023 $ 947 $ — $ 947 Additions 2,853 123 2,976 Cash payments ( 3,333 ) ( 118 ) ( 3,451 ) Balance, June 30, 2024 $ 467 $ 5 $ 472 |
Background, Nature of Busines_2
Background, Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business ZimVie is a leading medical technology company dedicated to enhancing the quality of life for dental patients worldwide. We develop, manufacture and market a comprehensive portfolio of products and solutions designed to support dental tooth replacement and restoration procedures. We are well-positioned in the growing global dental implant, biomaterials and digital dentistry market with a strong presence in the tooth replacement market with market leading positions in certain geographies. Prior to the closing of the sale of our spine segment, o ur operations were principally managed on a products basis and included two operating segments, 1) the dental products segment, and 2) the spine products segment. Since the sale of our spine segment, our core services include designing, manufacturing and distributing dental implant systems. Dental reconstructive implants are for individuals who are totally without teeth or are missing one or more teeth, dental prosthetic products are aimed at providing a more natural restoration to resemble the original teeth, and dental regenerative products are for soft tissue and bone rehabilitation. Our key products include the T3® Implant, Tapered Screw-Vent Implant System, Trabecular Metal Dental Implant, BellaTek Encode Impression System and Puros Allograft Particulate. Prior to the sale of our spine segment, the core services of our spine segment included designing, manufacturing and distributing medical devices and surgical instruments to deliver comprehensive solutions for individuals with back or neck pain caused by degenerative conditions, deformities or traumatic injury of the spine. We also provided devices that promote bone healing. Other differentiated products in our spine portfolio included Mobi-C® Cervical Disc, a motion-preserving alternative to fusion for patients with cervical disc disease, and The Tether, a novel non-fusion device for treatment of pediatric scoliosis. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of shareholders' equity for the three and six months ended June 30, 2024 and 2023, and the condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023, of ZimVie are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for the fair statement of such condensed consolidated financial statements have been made. The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 ("Quarterly Report") are presented as permitted by Regulation S-X and do not contain certain information included in our annual financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements presented in our Annual Report . During the three months ended March 31, 2024, we recorded out of period adjustments that increased the Loss from continuing operations before income taxes and reduced Earnings from discontinued operations, net of tax, by $ 1.8 million and $ 0.7 million, respective ly. We have concluded these out of period adjustments did not have a material impact on our interim condensed consolidated financial statements for the three months ended March 31, 2024 or six months ended June 30, 2024, nor were they material to previously issued interim and annual consolidated financial statements. Restricted Cash - As of both June 30, 2024 and December 31, 2023, we had $ 1.5 million in restricted cash. The restriction as of June 30, 2024 and December 31, 2023 is on cash held in China as a result of ongoing litigation with a spine products distributor in China related to our decision to exit our spine products business in China. Sale of Spine Segment The historical results of our spine segment have been reflected as discontinued operations in our condensed consolidated financial statements as the sale represents a strategic shift in our business that had a major effect on operations and financial results. The assets and liabilities associated with this segment are classified as assets and liabilities of discontinued operations in the condensed consolidated balance sheets. The disclosures presented in the notes to the condensed consolidated financial statements are presented on a continuing operations basis, unless otherwise noted. |
Accounting Pronouncements Recently Issued | Accounting Pronouncements Recently Issued In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative . This ASU amends the interim and annual disclosure requirements related to a variety of subtopics in the Accounting Standards Codification, including those focusing on accounting changes, earnings per share, debt and repurchase agreements. The guidance will be applied prospectively. The effective date for each amendment will be the date when the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are currently evaluating the effect of this ASU, but we do not expect it will have a material impact on our condensed consolidated financial statements or disclosures. In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The key amendments require disclosure of significant segment expenses on an annual and interim basis that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, including other segment items by reportable segment and a description of their composition, and to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB Topic 280, Segment Reporting, in interim periods as well. This ASU includes certain clarifications for measuring a segment's profit or loss in assessment by the CODM, disclosure of title and position of the CODM and an explanation of how the CODM uses the reported measures in assessing segment performance and deciding how to allocate resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We do not expect the adoption of this ASU to affect our financial position or our results of operations, but expect it will result in additional disclosures. In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments included in the ASU related to rate reconciliation, income taxes paid disclosures and other disclosures requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2024. We are currently in the process of evaluating the effect of this ASU. In March 2024, the SEC adopted final rules requiring public entities to provide certain climate-related information in their registration statements and annual reports. As part of the disclosures, entities will be required to quantify certain effects of severe weather events and other natural conditions in a note to their consolidated financial statements. While the SEC voluntarily stayed the rules due to pending judicial review, the rules in their current form would be effective for accelerated filers for annual periods beginning after December 15, 2025. We are currently in the process of evaluating the effect of these final rules. Other recently issued ASUs, excluding ASUs discussed above, were assessed and determined to be not applicable, or are not expected to have a material impact on our condensed consolidated financial statements or disclosures. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Details of Earnings (Loss), Asset and Liabilities, Significant Non-Cash Operating Activities and Capital Expenditures from Discontinued Operations | Details of earnings (loss) from discontinued operations included in our condensed consolidated statement of operations are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net Sales Third party, net $ 14,575 $ 106,247 $ 108,399 $ 211,165 Related party, net — — — 103 Total Net Sales 14,575 106,247 108,399 211,268 Cost of products sold, excluding intangible asset amortization ( 6,053 ) ( 30,035 ) ( 34,494 ) ( 57,877 ) Related party cost of products sold, excluding intangible asset amortization — — — ( 97 ) Intangible asset amortization — ( 13,857 ) — ( 27,572 ) Research and development ( 437 ) ( 6,773 ) ( 7,012 ) ( 14,916 ) Selling, general and administrative ( 8,097 ) ( 65,907 ) ( 62,219 ) ( 126,902 ) Restructuring and other cost reduction initiatives ( 43 ) ( 7,080 ) ( 1,894 ) ( 10,882 ) Acquisition, integration, divestiture and related ( 5,397 ) ( 26 ) ( 11,770 ) ( 368 ) Other expense, net ( 301 ) 768 ( 644 ) ( 107 ) Interest expense, net (1) ( 988 ) ( 3,806 ) ( 6,282 ) ( 7,698 ) Loss from discontinued operations before income taxes ( 6,741 ) ( 20,469 ) ( 15,916 ) ( 35,151 ) Adjustment of spine disposal group to fair value (2) — — 11,143 — Gain on sale of spine disposal group 11,284 — 11,284 — Benefit for income taxes from discontinued operations 996 3,006 2,828 4,113 Earnings (loss) from discontinued operations, net of tax $ 5,539 $ ( 17,463 ) $ 9,339 $ ( 31,038 ) (1) A portion of the interest on our Term Loan (as defined and described in Note 8) has been allocated to discontinued operations consistent with the amount of proceeds used to repay a portion of the amounts outstanding under our Term Loan in accordance with our Credit Agreement (as defined and described in Note 8). (2) We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $ 289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale , which resulted in a reduction of the December 2023 write-down of $ 11.1 million . Details of assets and liabilities of discontinued operations are as follows (in thousands): As of June 30, 2024 December 31, 2023 Cash and cash equivalents $ 4,094 $ 16,257 Accounts receivable, less allowance for credit losses 15,026 83,871 Inventories 14,139 130,430 Prepaid expenses and other current assets 132 12,215 Total Current Assets of Discontinued Operations 33,391 242,773 Property, plant and equipment, net 11,280 62,692 Intangible assets, net — 477,110 Other assets 1,320 14,743 Total Noncurrent Assets of Discontinued Operations 12,600 554,545 Accounts payable 1,128 24,186 Income taxes payable 133 410 Other current liabilities (1) 48,520 51,262 Total Current Liabilities of Discontinued Operations 49,781 75,858 Deferred income taxes — 86,037 Lease liability 291 8,032 Other long-term liabilities 99 972 Total Noncurrent Liabilities of Discontinued Operations 390 95,041 Adjustment of spine disposal group to fair value (2) — ( 289,456 ) (1) Includes non-cash liability of $ 40.8 million that represents the net assets of the Delayed Transfer Locations. (2) This adjustment is reflected in Noncurrent assets of discontinued operations in the condensed consolidated balance sheets. Cash flows attributable to discontinued operations are included on our condensed consolidated statements of cash flows. Significant non-cash operating and investing activities attributable to discontinued operations consisted of the following (in thousands): For the Six Months Ended June 30, 2024 2023 Depreciation and amortization $ 24 $ 46,946 Share-based compensation 712 1,237 Gain on sale of spine disposal group ( 22,427 ) — Additions to instruments 1,316 1,951 Additions to other property, plant and equipment 88 554 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill by Reportable Segment | The following table summarizes the changes in the carrying amount of goodwill by historical reportable segment (in thousands): Total Balance at December 31, 2023 Goodwill, Gross $ 404,111 Accumulated impairment losses ( 142,000 ) Goodwill, Net 262,111 Currency translation ( 2,342 ) Balance at June 30, 2024 Goodwill, Gross 401,769 Accumulated impairment losses ( 142,000 ) Goodwill, Net $ 259,769 |
Summary of Identifiable Intangible Assets | The components of identifiable intangible assets were as follows (in thousands): Technology Trademarks Customer Relationships Other Total As of December 31, 2023: Intangible assets subject to amortization: Gross carrying amount $ 168,841 $ 37,056 $ 143,565 $ 47,670 $ 397,132 Accumulated amortization ( 113,354 ) ( 23,393 ) ( 98,361 ) ( 47,670 ) ( 282,778 ) Total identifiable intangible assets $ 55,487 $ 13,663 $ 45,204 $ — $ 114,354 As of June 30, 2024: Intangible assets subject to amortization: Gross carrying amount $ 168,770 $ 36,706 $ 140,655 $ 47,534 $ 393,665 Accumulated amortization ( 117,597 ) ( 24,607 ) ( 101,889 ) ( 46,534 ) ( 290,627 ) Total identifiable intangible assets $ 51,173 $ 12,099 $ 38,766 $ 1,000 $ 103,038 |
Summary of Estimated Annual Amortization Expense Based on Exchange Rates | Estimated annual amortization expense for the years ending December 31, 2024 through 2028 based on exchange rates in effect at December 31, 2023 is as follows (in millions): For the Years Ending December 31, 2024 (remaining) $ 12.2 2025 22.2 2026 22.2 2027 16.9 2028 11.8 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation | Share-based compensation expense was as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Share-based compensation expense recognized in: Cost of products sold, excluding intangible asset amortization $ 364 $ 303 $ 346 $ 569 Research and development 433 383 835 805 Selling, general and administrative 4,879 5,129 7,969 9,282 5,676 5,815 9,150 10,656 Tax benefit related to awards ( 1,454 ) ( 1,471 ) ( 2,313 ) ( 2,680 ) Total expense, net of tax $ 4,222 $ 4,344 $ 6,837 $ 7,976 |
Summary of Stock Option Activity | Stock option activity was as follows: For the Six Months Ended June 30, 2024 Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Stock Options Price Life (Years) Value (in Millions) Outstanding at December 31, 2023 2,303,143 $ 26.83 Exercised ( 1,117 ) 18.58 Forfeited ( 542,887 ) 26.04 Outstanding at June 30, 2024 1,759,139 $ 27.09 5.6 $ — Exercisable at June 30, 2024 1,464,463 $ 26.87 5.3 $ — |
Summary of Restricted Stock Unit Activity | RSU activity was as follows: For the Six Months Ended June 30, 2024 Weighted Average Number of Grant Date RSUs Fair Value Outstanding at December 31, 2023 1,942,210 $ 15.13 Granted 797,869 17.52 Vested ( 532,484 ) 20.36 Forfeited ( 393,808 ) 13.06 Outstanding at June 30, 2024 1,813,787 $ 15.09 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Shares for Basic and Diluted Net Loss Per Common Share | The calculation of weighted average shares for basic and diluted net loss per common share is as follows (in thousands, except per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net Loss from Continuing Operations of ZimVie Inc. $ ( 9,553 ) $ ( 5,910 ) $ ( 21,114 ) $ ( 22,303 ) Earnings (loss) from discontinued operations, net of tax 5,539 ( 17,463 ) 9,339 ( 31,038 ) Net Loss of ZimVie Inc. $ ( 4,014 ) $ ( 23,373 ) $ ( 11,775 ) $ ( 53,341 ) Weighted average shares outstanding for basic net loss per common share 27,405 26,328 27,265 26,343 Effect of dilutive stock options and other equity awards (1) — — — — Weighted average shares outstanding for diluted net loss per common share 27,405 26,328 27,265 26,343 Basic (Loss) Earnings Per Common Share: Continuing operations $ ( 0.35 ) $ ( 0.22 ) $ ( 0.77 ) $ ( 0.85 ) Discontinued operations 0.20 ( 0.67 ) 0.34 ( 1.17 ) Net Loss $ ( 0.15 ) $ ( 0.89 ) $ ( 0.43 ) $ ( 2.02 ) Diluted (Loss) Earnings Per Common Share: Continuing operations $ ( 0.35 ) $ ( 0.22 ) $ ( 0.77 ) $ ( 0.85 ) Discontinued operations 0.20 ( 0.67 ) 0.34 ( 1.17 ) Net Loss $ ( 0.15 ) $ ( 0.89 ) $ ( 0.43 ) $ ( 2.02 ) (1) Since we incurred a net loss in each of the three months ended June 30, 2024 and 2023 and the six months ended June 30, 202 4 and 2023, no dilutive stock options or other equity awards were included as diluted shares in those periods. |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Inventories | Inventories consisted of the following (in thousands): June 30, 2024 December 31, 2023 Finished goods $ 47,492 $ 54,456 Work-in-progress 19,592 20,659 Raw materials 4,747 4,485 Inventories $ 71,831 $ 79,600 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): June 30, 2024 December 31, 2023 Other current liabilities: Salaries, wages and benefits $ 23,252 $ 23,171 Lease liabilities 4,259 4,053 Other liabilities 34,174 39,884 Total other current liabilities $ 61,685 $ 67,108 |
Fair Value Measurements of As_2
Fair Value Measurements of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Reconciliation of Items Measured at Fair Value on Recurring Basis with Significant Unobservable Inputs (Level 3) | The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands): Level 3 - Liabilities Contingent payments related to acquisitions Balance December 31, 2023 $ 9,799 Settlements ( 2,963 ) Balance June 30, 2024 $ 6,836 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt consisted of the following (in thousands): June 30, 2024 December 31, 2023 Term loan $ 236,912 $ 511,912 Debt issuance costs ( 1,802 ) ( 3,115 ) Total debt 235,110 508,797 Less: current portion — — Total debt due after one year $ 235,110 $ 508,797 |
Segment Data (Tables)
Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Disclosure on Geographic Areas, Long-Lived Assets | We conduct business in the following countries that hold 10% or more of our total combined property, plant and equipment, net (in thousands): As of June 30, 2024 December 31, 2023 U.S. $ 32,554 $ 35,444 Spain 14,177 14,431 Other countries 3,663 4,292 Property, plant and equipment, net $ 50,394 $ 54,167 U.S. and foreign sales (based on the location of the customer) are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 U.S. $ 69,316 $ 69,264 $ 137,064 $ 139,171 Spain 12,821 12,894 28,168 28,620 Other countries 34,674 36,491 69,774 71,028 Third party sales $ 116,811 $ 118,649 $ 235,006 $ 238,819 |
Restructuring and Other Cost _2
Restructuring and Other Cost Reduction Initiatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liabilities | The following table summarizes the liabilities directly attributable to us that were recognized under the plans discussed above and excludes non-cash charges (in thousands): Six Months Ended June 30, Employee Other Total Balance, December 31, 2023 $ 947 $ — $ 947 Additions 2,853 123 2,976 Cash payments ( 3,333 ) ( 118 ) ( 3,451 ) Balance, June 30, 2024 $ 467 $ 5 $ 472 |
Background, Nature of Busines_3
Background, Nature of Business and Basis of Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Apr. 01, 2024 USD ($) | Dec. 15, 2023 USD ($) | Mar. 01, 2022 | Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Feb. 01, 2023 | |
Number of operating segments | Segment | 2 | |||||||||
Loss from continuing operations before income taxes | $ (6,778) | $ (9,757) | $ (14,265) | $ (21,073) | ||||||
Earnings (loss) from discontinued operations, net of tax | 5,539 | $ (17,463) | 9,339 | $ (31,038) | ||||||
Restricted cash | $ 1,500 | $ 1,500 | $ 1,500 | |||||||
Consideration by Buyer HIG | $ 315,000 | |||||||||
Consideration as promissory note | $ 60,000 | |||||||||
Promissory note, interest rate | 10% | 10% | ||||||||
Total purchase price | $ 377,200 | |||||||||
Purchase price, inclusive of preliminary closing adjustments | 2,200 | |||||||||
Proceeds received | 311,800 | |||||||||
Cash disposed | $ 26,100 | |||||||||
Affiliate of H.I.G. Capital | ||||||||||
Total consideration | $ 375,000 | |||||||||
Zim Vie Inc | ||||||||||
Percentage of common stock shares outstanding | 19.70% | |||||||||
Percentage of ownership sold | 19.70% | |||||||||
Loss from continuing operations before income taxes | $ 1,800 | |||||||||
Earnings (loss) from discontinued operations, net of tax | $ 700 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total purchase price | $ 377,200 | ||||
Purchase price, inclusive of preliminary closing adjustments | 2,200 | ||||
Proceeds received | 311,800 | ||||
Cash disposed | 26,100 | ||||
Gain on sale included in earnings (loss) from discontinued operations | $ 11,300 | $ 11,284 | $ 0 | $ 11,284 | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Earnings (Loss) from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Apr. 01, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Total Net Sales | $ 14,575 | $ 106,247 | $ 108,399 | $ 211,268 | ||||||||
Cost of products sold, excluding intangible asset amortization | (6,053) | (30,035) | (34,494) | (57,877) | ||||||||
Related party cost of products sold, excluding intangible asset amortization | 0 | 0 | 0 | (97) | ||||||||
Intangible asset amortization | 0 | (13,857) | 0 | (27,572) | ||||||||
Research and development | (437) | (6,773) | (7,012) | (14,916) | ||||||||
Selling, general and administrative | (8,097) | (65,907) | (62,219) | (126,902) | ||||||||
Restructuring and other cost reduction initiatives | (43) | (7,080) | (1,894) | (10,882) | ||||||||
Acquisition, integration, divestiture and related | (5,397) | (26) | (11,770) | (368) | ||||||||
Other expense, net | (301) | 768 | (644) | (107) | ||||||||
Interest expense, net | [1] | (988) | (3,806) | (6,282) | (7,698) | |||||||
Loss from discontinued operations before income taxes | (6,741) | (20,469) | (15,916) | (35,151) | ||||||||
Gain on sale of spine disposal group | $ 11,300 | 11,284 | 0 | 11,284 | 0 | |||||||
Gain on sale of spine disposal group | 0 | [2] | $ 11,100 | 0 | [2] | 11,143 | [2] | 0 | [2] | $ (289,500) | ||
Benefit for income taxes from discontinued operations | 996 | 3,006 | 2,828 | 4,113 | ||||||||
Earnings (loss) from discontinued operations, net of tax | 5,539 | (17,463) | 9,339 | (31,038) | ||||||||
Third Party Net [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Total Net Sales | 14,575 | 106,247 | 108,399 | 211,165 | ||||||||
Related Party Net [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Total Net Sales | $ 0 | $ 0 | $ 0 | $ 103 | ||||||||
[1] A portion of the interest on our Term Loan (as defined and described in Note 8) has been allocated to discontinued operations consistent with the amount of proceeds used to repay a portion of the amounts outstanding under our Term Loan in accordance with our Credit Agreement (as defined and described in Note 8). We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $ 289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale , which resulted in a reduction of the December 2023 write-down of $ 11.1 million . |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Earnings (Loss) from Discontinued Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||
Adjustment of spine disposal group to fair value | $ 0 | [1] | $ (11,100) | $ 0 | [1] | $ (11,143) | [1] | $ 0 | [1] | $ 289,500 |
[1] We performed an impairment analysis of the spine segment in December 2023 on a held-for-sale basis. The fair value of consideration to be received upon closure of the transaction was less than the carrying value of the spine segment's net assets, resulting in a write-down of $ 289.5 million. We updated our analysis as of March 31, 2024, immediately prior to the sale , which resulted in a reduction of the December 2023 write-down of $ 11.1 million . |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Cash and cash equivalents | $ 4,094 | $ 16,257 | |
Accounts receivable, less allowance for credit losses | 15,026 | 83,871 | |
Inventories | 14,139 | 130,430 | |
Prepaid expenses and other current assets | 132 | 12,215 | |
Total Current Assets of Discontinued Operations | 33,391 | 242,773 | |
Property, plant and equipment, net | 11,280 | 62,692 | |
Intangible assets, net | 0 | 477,110 | |
Other assets | 1,320 | 14,743 | |
Total Noncurrent Assets of Discontinued Operations | 12,600 | 554,545 | |
Accounts payable | 1,128 | 24,186 | |
Income taxes payable | 133 | 410 | |
Other current liabilities | [1] | 48,520 | 51,262 |
Total Current Liabilities of Discontinued Operations | 49,781 | 75,858 | |
Deferred income taxes | 0 | 86,037 | |
Lease liability | 291 | 8,032 | |
Other long-term liabilities | 99 | 972 | |
Total Noncurrent Liabilities of Discontinued Operations | 390 | 95,041 | |
Adjustment of spine disposal group to fair value | [2] | $ 0 | $ (289,456) |
[1] Includes non-cash liability of $ 40.8 million that represents the net assets of the Delayed Transfer Locations. This adjustment is reflected in Noncurrent assets of discontinued operations in the condensed consolidated balance sheets. |
Discontinued Operations - Sum_4
Discontinued Operations - Summary of Assets and Liabilities of Discontinued Operations (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash liability | [1] | $ 48,520 | $ 51,262 |
Spine Segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash liability | $ 40,800 | ||
[1] Includes non-cash liability of $ 40.8 million that represents the net assets of the Delayed Transfer Locations. |
Discontinued Operations - Sum_5
Discontinued Operations - Summary of Significant Non-Cash Operating Activities and Capital Expenditures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Depreciation and amortization | $ 24 | $ 46,946 |
Share-based compensation | 712 | 1,237 |
Gain on sale of spine disposal group | (22,427) | 0 |
Additions to instruments | 1,316 | 1,951 |
Additions to other property, plant and equipment | $ 88 | $ 554 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Gross | $ 404,111 | $ 401,769 |
Accumulated impairment losses | (142,000) | (142,000) |
Goodwill, Net | 262,111 | $ 259,769 |
Currency translation | $ (2,342) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 393,665 | $ 397,132 |
Accumulated amortization | (290,627) | (282,778) |
Total identifiable intangible assets | 103,038 | 114,354 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 168,770 | 168,841 |
Accumulated amortization | (117,597) | (113,354) |
Total identifiable intangible assets | 51,173 | 55,487 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36,706 | 37,056 |
Accumulated amortization | (24,607) | (23,393) |
Total identifiable intangible assets | 12,099 | 13,663 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 140,655 | 143,565 |
Accumulated amortization | (101,889) | (98,361) |
Total identifiable intangible assets | 38,766 | 45,204 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 47,534 | 47,670 |
Accumulated amortization | (46,534) | (47,670) |
Total identifiable intangible assets | $ 1,000 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Annual Amortization Expense Based on Exchange Rates (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (remaining) | $ 12.2 |
2025 | 22.2 |
2026 | 22.2 |
2027 | 16.9 |
2028 | $ 11.8 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share based compensation expense | $ 5,676 | $ 5,815 | $ 9,150 | $ 10,656 | ||
Unexercised stock option | $ 10,300 | |||||
Weighted average remaining vesting period | 2 years 6 months | |||||
Vesting period | 3 years | |||||
Expected Volatility | 52.29% | |||||
Expected term | 6 years | |||||
Risk-free interest rate | 1.94% | |||||
Dividend yield | 0% | |||||
Unrecognized share-based compensation cost related to unvested stock options | $ 2,900 | $ 2,900 | ||||
2022 Stock Incentive Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Common stock shares authorized | 6,000,000 | |||||
Shares available for future grants | 3,600,000 | 3,600,000 | ||||
Maximum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Weighted average vesting period of unrecognized share-based compensation costs | 1 year | |||||
Zim Vie Inc | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share based compensation expense | $ 21,300 | |||||
Stock option not yet recognized | $ 11,000 | $ 11,000 | ||||
Restricted Stock Units | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Weighted average fair value | $ 15.09 | $ 15.09 | $ 15.13 | |||
Number of RSUs, Granted | 797,869 | |||||
Number of RSUs outstanding | 1,813,787 | 1,813,787 | 1,942,210 | |||
Unrecognized share-based compensation cost related to unvested stock options | $ 16,700 | $ 16,700 | ||||
Weighted average vesting period of unrecognized share-based compensation costs | 1 year 4 months 24 days | |||||
Total fair value of RSUs granted | $ 14,000 | 15,800 | ||||
Total fair value of RSUs vested | $ 10,800 | $ 6,200 | ||||
Restricted Stock Units | Zim Vie Inc | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Weighted average fair value | $ 31.55 | $ 31.55 | ||||
Performance Restricted stock units and RSU | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Conversion of Shares | 300,000 | |||||
Vesting period | 36 months | |||||
Number of RSUs outstanding | 289,310 | 289,310 | ||||
Performance Restricted stock units and RSU | Minimum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Provision for Restricted stock unit vesting percentage | 0% | |||||
Performance Restricted stock units and RSU | Maximum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Provision for Restricted stock unit vesting percentage | 150% | |||||
Employee Stock Option | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Weighted average fair value | $ 14.76 | $ 14.76 | ||||
Vesting period | 10 years | |||||
Employee Stock Option | Zim Vie Inc | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Conversion of Shares | 2,100,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total expense, pre-tax | $ 5,676 | $ 5,815 | $ 9,150 | $ 10,656 |
Tax benefit related to awards | (1,454) | (1,471) | (2,313) | (2,680) |
Total expense, net of tax | 4,222 | 4,344 | 6,837 | 7,976 |
Cost of Products Sold, Excluding Intangible Asset Amortization [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total expense, pre-tax | 364 | 303 | 346 | 569 |
Research and Development [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total expense, pre-tax | 433 | 383 | 835 | 805 |
Selling, General and Administrative [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total expense, pre-tax | $ 4,879 | $ 5,129 | $ 7,969 | $ 9,282 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Stock Options, Outstanding, Beginning Balance | shares | 2,303,143 |
Number of Stock Options, Exercised | shares | (1,117) |
Number of Stock Options, Forfeited | shares | (542,887) |
Number of Stock Options, Outstanding, Ending Balance | shares | 1,759,139 |
Number of Stock Options, Exercisable | shares | 1,464,463 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 26.83 |
Weighted Average Exercise Price, Exercised | $ / shares | 18.58 |
Weighted Average Exercise Price, Forfeited | $ / shares | 26.04 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares | 27.09 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 26.87 |
Weighted Average Remaining Contractual Life, Outstanding | 5 years 7 months 6 days |
Weighted Average Remaining Contractual Life, Exercisable | 5 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Exercisable | $ | $ 0 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of RSUs, Outstanding, Beginning Balance | shares | 1,942,210 |
Number of RSUs, Granted | shares | 797,869 |
Number of RSUs, Vested | shares | (532,484) |
Number of RSUs, Forfeited | shares | (393,808) |
Number of RSUs, Outstanding, Ending balance | shares | 1,813,787 |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance | $ / shares | $ 15.13 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 17.52 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 20.36 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 13.06 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance | $ / shares | $ 15.09 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of shares excluded from computation of diluted net loss per share | 2.5 | 4 | 2 | 3.7 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Weighted Average Shares for Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Earnings Per Share [Abstract] | |||||
Net Loss from Continuing Operations of ZimVie Inc. | $ (9,553) | $ (5,910) | $ (21,114) | $ (22,303) | |
Earnings (loss) from discontinued operations, net of tax | 5,539 | (17,463) | 9,339 | (31,038) | |
Net Loss of ZimVie Inc. | $ (4,014) | $ (23,373) | $ (11,775) | $ (53,341) | |
Weighted average shares outstanding for basic net loss per common share | 27,405 | 26,328 | 27,265 | 26,343 | |
Effect of dilutive stock options and other equity awards | [1] | 0 | 0 | 0 | 0 |
Weighted average shares outstanding for diluted net loss per common share | 27,405 | 26,328 | 27,265 | 26,343 | |
Basic (Loss) Earnings Per Common Share: | |||||
Continuing operations | $ (0.35) | $ (0.22) | $ (0.77) | $ (0.85) | |
Discontinued operations | 0.2 | (0.67) | 0.34 | (1.17) | |
Net Loss | (0.15) | (0.89) | (0.43) | (2.02) | |
Diluted (Loss) Earnings Per Common Share: | |||||
Continuing operations | (0.35) | (0.22) | (0.77) | (0.85) | |
Discontinued operations | 0.2 | (0.67) | 0.34 | (1.17) | |
Net Loss | $ (0.15) | $ (0.89) | $ (0.43) | $ (2.02) | |
[1] Since we incurred a net loss in each of the three months ended June 30, 2024 and 2023 and the six months ended June 30, 202 4 and 2023, no dilutive stock options or other equity awards were included as diluted shares in those periods. |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | ||||
Expense (Benefit) charged to obsolete inventories | $ 0.6 | $ 0.5 | $ 1.1 | $ 0.9 |
Balance Sheet Details - Summary
Balance Sheet Details - Summary of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 47,492 | $ 54,456 |
Work in progress | 19,592 | 20,659 |
Raw materials | 4,747 | 4,485 |
Inventories | $ 71,831 | $ 79,600 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other current liabilities: | ||
Salaries, wages and benefits | $ 23,252 | $ 23,171 |
Lease liabilities | 4,259 | 4,053 |
Other liabilities | 34,174 | 39,884 |
Total other current liabilities | $ 61,685 | $ 67,108 |
Fair Value Measurements of As_3
Fair Value Measurements of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Apr. 01, 2024 | Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 15, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Consideration as promissory note | $ 60,000 | $ 60,000 | $ 0 | |||
Promissory note, interest rate | 10% | 10% | ||||
Note receivable | $ 60,270 | $ 0 | ||||
Subsequent Event [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Contingent payment related to prior acquisitions | $ 2,300 |
Fair Value Measurements of As_4
Fair Value Measurements of Assets and Liabilities - Reconciliation of Items Measured at Fair Value on Recurring Basis with Significant Unobservable Inputs (Level 3) (Details) - Contingent Consideration to Acquisitions [Member] - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | $ 9,799 |
Contingent payment related to prior acquisitions | (2,963) |
Fair Value, Ending Balance | $ 6,836 |
Debt - Schedule of Debt Due to
Debt - Schedule of Debt Due to Parent (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Term loan | $ 236,912 | $ 511,912 |
Debt issuance costs | (1,802) | (3,115) |
Total debt | 235,110 | 508,797 |
Less: current portion | 0 | 0 |
Total debt due after one year | $ 235,110 | $ 508,797 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2024 | Dec. 17, 2021 | Apr. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | |
Line of Credit Facility [Line Items] | |||||
Scheduled repayments on the term loan | $ 0 | ||||
Debt instrument description | As of June 30, 2024, our interest rate was the secured overnight financing rate plus the applicable margin of 1.75% for term benchmark borrowings. Commitments under the Revolver are subject to a commitment fee on the unused portion of the Revolver of 25 basis points. | ||||
Corporate insurance premium finance amount | $ 4,800,000 | ||||
Revolver | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | $ 0 | ||||
Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | $ 236,900,000 | ||||
Prepayment of debt | $ 275,000,000 | ||||
Wrote off of debt isuance cost | $ 900,000 | ||||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Proceeds from revolving loans | $ 175,000,000 | ||||
Borrowings under term loan credit agreements | $ 595,000,000 | ||||
Borrowing interest Rate | 1.75% | 1.75% | |||
Debt instrument total net leverage ratio | 6 | 6 | |||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument total net leverage ratio | 1 | 1 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivatives, Fair Value [Line Items] | |||||
Current derivative assets | $ 0.4 | $ 0.4 | $ 0.4 | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Assets, Current | Assets, Current | Assets, Current | ||
Current derivative liabilities | $ 0.4 | $ 0.4 | $ 0.2 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current | Liabilities, Current | ||
Derivative (Losses) gains on derivative instrument | $ (0.3) | $ 0.3 | $ (0.4) | $ 0.5 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | |||
Derivative notional amount | $ 30 | $ 30 | $ 25 | ||
Maximum [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign currency exchange forward contracts term | 3 months | ||||
Minimum [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign currency exchange forward contracts term | 1 month |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate on loss before income taxes | (40.90%) | 39.40% | (48.00%) | (5.80%) |
Statutory tax rate | 21% | 21% | 21% | 21% |
Segment Data - Additional Infor
Segment Data - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 Customer | Jun. 30, 2023 Customer | Jun. 30, 2024 Segment Customer | Jun. 30, 2023 Customer | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Number of customers accounted for 10% or more | Customer | 0 | 0 | 0 | 0 |
Geographic Concentration Rsk | Revenue | Dental | ||||
Segment Reporting Information [Line Items] | ||||
Revenue segment less than 10% | 10% |
Segment Data - Disclosure on Ge
Segment Data - Disclosure on Geographic Areas, Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property, plant and equipment, net | $ 50,394 | $ 50,394 | $ 54,167 | ||
Third party sales | 116,811 | $ 118,649 | 235,006 | $ 238,819 | |
U.S | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property, plant and equipment, net | 32,554 | 32,554 | 35,444 | ||
Third party sales | 69,316 | 69,264 | 137,064 | 139,171 | |
Spain | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property, plant and equipment, net | 14,177 | 14,177 | 14,431 | ||
Third party sales | 12,821 | 12,894 | 28,168 | 28,620 | |
Other countries | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property, plant and equipment, net | 3,663 | 3,663 | $ 4,292 | ||
Third party sales | $ 34,674 | $ 36,491 | $ 69,774 | $ 71,028 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount of accrued loss contingency | $ 1.2 | $ 2.6 |
Related Party Transactions - Su
Related Party Transactions - Summary of Corporate Allocations Reflected in the Combined Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Selling, general & administrative | $ 62,384 | $ 62,573 | $ 122,714 | $ 129,547 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Feb. 01, 2023 | |
Share-based compensation benefit | $ 9,150 | $ 10,656 | |
Zim Vie Inc | |||
Percentage of ownership sold | 19.70% |
Related Party Transactions - _2
Related Party Transactions - Summary of Sale Transactions with Related Party (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Related party net sales | $ 116,811 | $ 118,649 | $ 235,006 | $ 239,055 |
Related Party Transactions - _3
Related Party Transactions - Summary of Corporate Allocations Reflected in the Condensed Consolidated Balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Related party receivable | $ 70,526 | $ 65,168 |
Related party payable | $ 27,160 | $ 27,785 |
Restructuring and Other Cost _3
Restructuring and Other Cost Reduction Initiatives - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 15 Months Ended | 25 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | |
January 2024 restructuring plan [Member] | Employee Termination Benefits and Professional Fees [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges Pre-tax | $ 0.4 | $ 2.8 | ||||
Restructuring Charges | $ 4 | 4 | $ 4 | $ 4 | ||
April and July 2023 Restructuring Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges Pre-tax | $ 4.1 | |||||
April and July 2023 Restructuring Plan [Member] | Employee Termination Benefits and Professional Fees [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges Pre-tax | $ 1.4 | $ 2.5 | ||||
June 2022 Restructuring Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges Pre-tax | $ 0.2 | |||||
June 2022 Restructuring Plan [Member] | Employee Termination Benefits and Professional Fees [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges Pre-tax | $ 3 |
Restructuring and Other Cost _4
Restructuring and Other Cost Reduction Initiatives - Schedule of Restructuring Liabilities (Details) - Restructuring Plans Member $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | $ 947 |
Additions | 2,976 |
Cash payments | (3,451) |
Restructuring Reserve, Ending Balance | 472 |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 947 |
Additions | 2,853 |
Cash payments | (3,333) |
Restructuring Reserve, Ending Balance | 467 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 0 |
Additions | 123 |
Cash payments | (118) |
Restructuring Reserve, Ending Balance | $ 5 |