| SEGMENT INFORMATION |
NOTE 10. SEGMENT INFORMATION We report our results in two separate business segments consisting of Intelligent Operating Solutions and Advanced Healthcare Solutions. We determine our business segments based on the identification of segment managers and similarities in products, end markets, economic characteristics, technologies, and services, as well as the financial data utilized by the Company's chief executive officer. The Company's chief operating decision maker ("CODM") is the chief executive officer. The CODM uses gross profit and operating profit at the segment level to assess performance and allocate resources, including those associated with merger and acquisition targets. The CODM also compares the actual results to expectations in assessing the performance of the segments. Operating expenses generally include selling, general and administrative expenses, and research and development expenses. Depreciation expense is allocated between Cost of sales and Selling, general, and administrative expenses. Amortization expense is recorded within Selling, general, and administrative expenses. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated in the combined totals. Unallocated costs and other costs are not considered part of our evaluation of reportable segment operating performance. Segment results are presented as follows ($ in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended July 3, 2026 | | Total | | Intelligent Operating Solutions | | Advanced Healthcare Solutions | | Unallocated Corporate Costs and Other | Sales | $ | 1,096.8 | | | $ | 758.2 | | | $ | 338.6 | | | $ | — | | Cost of sales | (401.5) | | | (260.7) | | | (140.8) | | | — | | Gross profit | 695.3 | | | 497.5 | | | 197.8 | | | — | | Operating expenses | (485.4) | | | (294.0) | | | (159.5) | | | (31.9) | | | | | | | | | | Operating profit (loss) | 209.9 | | | 203.5 | | | 38.3 | | | (31.9) | | Non-operating income (expense), net | | | | | | | | Interest expense, net | (35.4) | | | — | | | — | | | (35.4) | | | | | | | | | | Other non-operating income (expense), net | 5.0 | | | — | | | — | | | 5.0 | | Earnings from continuing operations before income taxes | $ | 179.5 | | | $ | 203.5 | | | $ | 38.3 | | | $ | (62.3) | | | | | | | | | | Depreciation and amortization expenses | $ | (113.5) | | | $ | (64.1) | | | $ | (49.2) | | | $ | (0.2) | | | | | | | | | | Capital expenditures | $ | (28.1) | | | $ | (20.0) | | | $ | (8.1) | | | $ | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 27, 2025 | | Total | | Intelligent Operating Solutions | | Advanced Healthcare Solutions | | Unallocated Corporate Costs and Other | Sales | $ | 1,016.4 | | | $ | 696.9 | | | $ | 319.5 | | | $ | — | | Cost of sales | (370.9) | | | (240.9) | | | (130.0) | | | — | | Gross profit | 645.5 | | | 456.0 | | | 189.5 | | | — | | Operating expenses | (475.7) | | | (285.2) | | | (153.7) | | | (36.8) | | Operating profit (loss) | 169.8 | | | 170.8 | | | 35.8 | | | (36.8) | | Non-operating income (expense), net | | | | | | | | Interest expense, net | (32.1) | | | — | | | — | | | (32.1) | | Other non-operating income (expense), net | 1.9 | | | — | | | — | | | 1.9 | | Earnings from continuing operations before income taxes | $ | 139.6 | | | $ | 170.8 | | | $ | 35.8 | | | $ | (67.0) | | | | | | | | | | Depreciation and amortization expenses | $ | (109.2) | | | $ | (58.6) | | | $ | (50.3) | | | $ | (0.3) | | | | | | | | | | Capital expenditures | $ | (25.0) | | | $ | (20.1) | | | $ | (4.9) | | | $ | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended July 3, 2026 | | Total | | Intelligent Operating Solutions | | Advanced Healthcare Solutions | | Unallocated Corporate Costs and Other | Sales | $ | 2,166.2 | | | $ | 1,501.4 | | | $ | 664.8 | | | $ | — | | Cost of sales | (795.4) | | | (520.1) | | | (275.3) | | | — | | Gross profit | 1,370.8 | | | 981.3 | | | 389.5 | | | — | | Operating expenses | (969.2) | | | (591.6) | | | (318.5) | | | (59.1) | | | | | | | | | | Operating profit (loss) | 401.6 | | | 389.7 | | | 71.0 | | | (59.1) | | Non-operating income (expense), net | | | | | | | | Interest expense, net | (67.0) | | | — | | | — | | | (67.0) | | | | | | | | | | Other non-operating income (expense), net | 8.5 | | | — | | | — | | | 8.5 | | Earnings from continuing operations before income taxes | $ | 343.1 | | | $ | 389.7 | | | $ | 71.0 | | | $ | (117.6) | | | | | | | | | | Depreciation and amortization expenses | $ | (227.1) | | | $ | (126.5) | | | $ | (100.0) | | | $ | (0.6) | | | | | | | | | | | Capital expenditures | $ | (54.7) | | | $ | (40.7) | | | $ | (14.0) | | | $ | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 27, 2025 | | Total | | Intelligent Operating Solutions | | Advanced Healthcare Solutions | | Unallocated Corporate Costs and Other | Sales | $ | 2,009.5 | | | $ | 1,387.8 | | | $ | 621.7 | | | $ | — | | Cost of sales | (726.5) | | | (472.4) | | | (254.1) | | | — | | Gross profit | 1,283.0 | | | 915.4 | | | 367.6 | | | — | | Operating expenses | (947.9) | | | (570.0) | | | (310.1) | | | (67.8) | | Operating profit (loss) | 335.1 | | | 345.4 | | | 57.5 | | | (67.8) | | Non-operating income (expense), net | | | | | | | | Interest expense, net | (64.1) | | | — | | | — | | | (64.1) | | Other non-operating income (expense), net | 2.3 | | | — | | | — | | | 2.3 | | Earnings from continuing operations before income taxes | $ | 273.3 | | | $ | 345.4 | | | $ | 57.5 | | | $ | (129.6) | | | | | | | | | | Depreciation and amortization expenses | $ | (217.2) | | | $ | (116.8) | | | $ | (99.8) | | | $ | (0.6) | | | | | | | | | | | Capital expenditures | $ | (46.1) | | | $ | (37.1) | | | $ | (8.9) | | | $ | (0.1) | | | | | | | | | | |
Segment Assets: | | | | | | | | | | | | | | | As of | | ($ in millions) | July 3, 2026 | | December 31, 2025 | | | | Intelligent Operating Solutions | $ | 6,243.7 | | | $ | 6,346.0 | | | | | Advanced Healthcare Solutions | 4,832.6 | | | 4,861.6 | | | | | Total segment assets | 11,076.3 | | | 11,207.6 | | | | Other (a) | 533.8 | | | 509.3 | | | | | Total assets, discontinued operations | 4.9 | | | 20.8 | | | | | Total assets | $ | 11,615.0 | | | $ | 11,737.7 | | | | | | | | | | (a) Other represents corporate assets which consist primarily of cash, property, plant, and equipment, and net deferred income tax assets. | | |
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