v3.26.1
Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
We test goodwill annually for impairment at October 31 or
whenever events or circumstances indicate that goodwill may be
impaired. When it is unlikely that goodwill of a reporting unit is
impaired, we perform a qualitative assessment that may be
periodically supplemented with a corroborative quantitative
analysis.
In the first quarter 2026 we changed our organizational structure.
Our new Ortho Tech business combines the orthopaedic
instruments portfolio from our Instruments business with the
Mako and enabling technologies portfolios from our Other
Orthopaedics business.
Following this reorganization we will continue to have two
reportable segments, MedSurg and Neurotechnology and
Orthopaedics. The reorganization impacts the composition of the
Instruments and Joint Replacement reporting units and results in
a new reporting unit representing the Ortho Tech business.
We assessed goodwill for impairment for the impacted reporting
units immediately before and after the reorganization and
concluded that there was no impairment of goodwill for any of the
reporting units impacted by the reorganization.
In connection with this reorganization we reallocated the goodwill
associated with the impacted businesses using the relative fair
value approach, resulting in a reallocation of $518 of goodwill
from the MedSurg and Neurotechnology segment to the
Orthopaedics segment.
Changes in the Net Carrying Value of Goodwill by Segment
MedSurg and
Neurotechnology
Orthopaedics
Total
December 31, 2025
$12,556
$6,735
$19,291
Reallocation of goodwill
(518)
518
Additions and adjustments
(74)
(74)
Foreign exchange and other
(19)
(10)
(29)
March 31, 2026
$11,945
$7,243
$19,188