v3.26.1
Restructuring
 3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
Transform for the Future
In November 2025, the Company approved its new multiyear 'Transform for the Future' global initiative (the "Program") to further enable its long-term growth strategy and ensure it's best positioned to compete-to-win in a rapidly changing healthcare environment. Designed to transform the cost structure, enhance operational efficiency, and reposition for profitable growth, the primary activities of the Program include operating structure optimization and workforce reorganization, procurement and cost management, supply chain, manufacturing and global footprint optimization, and streamlining systems and increased automation to improve operational efficiency. Once fully implemented, the four-year program is expected to generate approximately $500 million in annual cost savings, a portion of which will be reinvested in strategic growth initiatives. The Company anticipates cumulative pretax costs related to the Program will be approximately $500 million.
The related restructuring charges for periods presented were recorded in the consolidated statements of income as follows:
Three months ended March 31,
(Millions)20262025
Cost of product$1 $— 
Cost of software and rentals— — 
Selling, general and administrative expenses34 — 
Research and development expenses3 — 
Total operating income impact$37 $— 
Restructuring actions, including cash and non-cash impacts, are as follows:
(Millions)Employee Termination BenefitsOther Restructuring-relatedTotal
Expense incurred in 2025$42 $11 $53 
Non-cash changes(4)— (4)
Cash payments(4)(7)(11)
Accrued liabilities as of December 31, 2025$34 $5 $39 
Expense incurred in 2026$2 $35 $37 
Non-cash changes2 — 2 
Cash payments(16)(6)(22)
Accrued liabilities as of March 31, 2026$22 $34 $56 
Other includes charges associated with salaries and wages of employees fully dedicated to the Program and consulting service fees. All Program charges were recognized within Corporate and are not included within business segment results.
Solventum Way
In the fourth quarter of 2024, the Company announced its Solventum Way restructuring program, which is a reorganization designed to establish a more flexible and decentralized structure, create headroom to invest for growth and an operating model that enhances margins over time. The actions under the Solventum Way restructuring program were substantially complete as of December 31, 2025.
The related restructuring charges for periods presented were recorded in the consolidated statements of income as follows:
Three months ended March 31,
(Millions)20262025
Cost of product$— $10 
Cost of software and rentals— — 
Selling, general and administrative expenses3 5 
Research and development expenses— 3 
Total operating income impact$3 $18 
Restructuring actions, including cash and non-cash impacts, are as follows:
(Millions)Employee Termination Benefits and Other
Accrued liabilities as of December 31, 2024$53 
Expense incurred in 202527 
Non-cash changes(4)
Cash payments(67)
Accrued liabilities as of December 31, 2025$9 
Expense incurred in 2026$3 
Cash payments(6)
Accrued liabilities as of March 31, 2026$6 
Other primarily includes charges associated with asset write-offs and other contractual third party termination costs. All program charges were recognized within Corporate and are not included within business segment results.