Acquisitions and Divestitures |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |
| Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions The Company had no acquisitions during the three months ended March 31, 2026 or 2025. In December 2025, the Company acquired Acera Surgical ("Acera"), a privately held bioscience company. Refer to the Company's 2025 Annual Report for additional details of the acquisition. Total purchase consideration includes a future payment that is contingent on the acquired business achieving a sales-based milestone on or before December 31, 2030. The payment owed upon achievement of the milestone is $125 million. The fair value of the future milestone payment was $80 million at December 31, 2025. The change in the fair value of the contingent payment for the three months ended March 31, 2026 was not material. The contingent payment is classified as level 3 within the fair value hierarchy. The Acera purchase price allocations are considered preliminary as of March 31, 2026, with final estimates of fair value expected to be completed by the end of 2026. During the three months ended March 31, 2026, the Company recorded an adjustment to the purchase price allocation of $21 million, primarily related to deferred taxes. Divestitures On September 1, 2025, Solventum completed the sale of its Purification and Filtration business to Thermo Fisher Scientific, Inc. ("Buyer"). Refer to the Company's 2025 Annual Report for additional details of the divestiture. In connection with the sale, the Company entered into various transition service agreements to provide certain support services for a period of up to 24 months from the closing of the sale. As certain services were contracted at a price below fair market value, the Company recognized an unfavorable contract liability of $113 million. The liability is being recognized as services are provided over the terms of the agreements. During the three months ended March 31, 2026, the Company recognized approximately $34 million of transition service income, including income related to the unfavorable contract liability, within selling, general and administrative expenses as an offset to costs incurred to support transition services provided to Buyer. As of March 31, 2026, the remaining balance of the unfavorable contract liability was $86 million.
|