v3.26.1
Business Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The Company’s CODM is its Chief Executive Officer. The primary profitability measurement used by the CODM to review segment operating results is segment operating income. The CODM uses segment operating income to allocate resources during the strategic planning process and then holds the segments accountable to the resourcing decisions during the annual budgeting process. The CODM does not use asset information by segment to evaluate reportable segments as the CODM does not receive discrete asset information by segment. Beginning in third quarter 2025, as a result of the sale of the Purification and Filtration business, the Company’s operating activities are managed primarily through the following reportable segments: MedSurg, Dental Solutions, and Health Information Systems. There have been no changes to the composition of or to financial information reported within each of these reportable segments. These segments have been identified based on the nature of the products sold and how the Company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.
All Other includes the Water Business, which was previously reported within the Purification and Filtration business segment. The Water Business results have been reclassified for comparability within All Other for all historical periods. All Other also includes sales and cost of sales related to our supply agreements with 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included in Corporate and Unallocated.
Certain items are maintained at the corporate level and not allocated to the segments ("Corporate and Unallocated"). Corporate and Unallocated primarily includes amortization of acquired intangible assets, restructuring and related charges, timing related benefits or costs associated with capitalized manufacturing variances, charges and recoveries related to certain litigation, transaction-related costs for acquisitions and divestitures, and gains on sale of businesses. In addition, Corporate and Unallocated includes Spin-Off and separation related costs. Spin-Off and separation related costs include any costs incurred as part of our separation from 3M and costs to setup operations as a standalone company, including system implementations, manufacturing relocations, certain equity awards granted as part of the Spin-Off, profit mark-ups on transition service arrangements with 3M and other one-time costs. Corporate and Unallocated also includes income and costs related to transition service agreements entered into in connection with the sale of the Purification and Filtration business.
Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income and pre-tax income below.
Consistent accounting policies have been applied on a consolidated basis as well as by all segments for all reporting periods.
Business Segment Information and Disaggregated Net Sales
Three months ended March 31,
Net Sales (Millions)
20262025
Advanced Wound Care$497 $448 
Infection Prevention and Surgical Solutions737 710 
MedSurg1,234 1,157 
Dental Solutions354 328 
Health Information Systems342 329 
Total reportable segment net sales1,931 1,814 
Purification and Filtration— 180 
All Other76 76 
Total net sales$2,007 $2,070 
Three months ended March 31,
Cost of Sales (Millions)20262025
MedSurg$622 $548 
Dental Solutions120 118 
Health Information Systems80 88 
Three months ended March 31,
Operating Expenses (Millions)*20262025
MedSurg$451 $404 
Dental Solutions148 132 
Health Information Systems132 132 
* Operating expenses are comprised of selling, general and administrative expenses and research and development expenses as shown on the condensed consolidated statements of income.
Three months ended March 31,
Operating Performance (Millions)
20262025
MedSurg$161 $206 
Dental Solutions87 78 
Health Information Systems130 109 
Total reportable segment operating income379 393 
Purification and Filtration— 27 
All Other12 11 
Amortization expense(90)(81)
Corporate and Unallocated(219)(198)
Total operating income81 152 
Interest expense, net62 104 
Other expense/(income), net4 11 
Income before income taxes$16 $38