Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 43

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 43
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 at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s incremental borrowing rate is used as a discount rate, based on the information available at the commencement date, in determining the present value of lease payments. Lease assets also include the impact of any prepayments made and are reduced by the impact of any lease incentives.The Company does not recognize lease liabilities or lease assets on the balance sheet for short-term leases (leases with a lease term of twelve months or less as of the commencement date). Rather, any short-term lease payments are recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects the Company's short-term lease commitments.For all classifications of leases, the Company combines lease and non-lease components to account for them as a single lease component. Variable lease payments are excluded from the lease liability and recognized in the period in which the obligation is incurred. Additionally, lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. A summary of the Company’s lease portfolio as of December 31, 2024, and 2023, is presented in the table below:

        (U.S. Dollars, in thousands, except lease term and discount rate)
         
        Classification
         
        December 31, 2024

        December 31, 2023

        Assets

        Operating leases
         
        Other long-term assets
         
        $
        17,238

        $
        19,869

        Finance leases
         
        Property, plant and equipment, net

        15,386

        16,345

        Total lease assets

        $
        32,624

        $
        36,214

        Liabilities

        Current

        Operating leases
         
        Other current liabilities
         
        $
        4,023

        $
        3,477

        Finance leases
         
        Current portion of finance lease liability

        755

        708

        Long-term

        Operating leases
         
        Other long-term liabilities

        14,084

        17,125

        Finance leases
         
        Long-term portion of finance lease liability

        17,835

        18,532

        Total lease liabilities

        $
        36,697

        $
        39,