v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE J – SEGMENT REPORTING

We aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting, we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments. In the fourth quarter of 2025, we reorganized our operating segments; this change had no impact on our reportable segments. Our chief operating decision maker (CODM) is our President and Chief Executive Officer.
We measure and evaluate our reportable segments based on their respective net sales, cost of goods sold, selling, general and administrative expenses, research and development expenses, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all based on internally-derived standard currency exchange rates to exclude the impact of foreign currency, which may be updated from year to year. We exclude from segment expenses and segment operating income certain corporate-related expenses and certain transactions or adjustments that our CODM considers to be non-operational, such as amounts related to amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), litigation-related net charges (credits), European Union (EU) Medical Device Regulation (MDR) implementation costs, and the International Emergency Economic Powers Act (IEEPA) tariff refund. Although we exclude these amounts from segment expenses and segment operating income, they are included in reported Income (loss) before income taxes within our accompanying unaudited consolidated statements of operations and are included in the reconciliation below. The CODM uses segment operating income in the strategic plan, annual operating plan and other forecasting cycles. During these forecasting cycles, the CODM compares budget versus actual results to evaluate both internal and external events and conditions, which are used in assessing the performance of the reportable segments and to allocate resources across our reportable segments. Refer to Note K – Revenue for net sales by reportable segment presented in accordance with GAAP.

A reconciliation of sales and operating income for the reportable segments to the applicable line items within our accompanying unaudited consolidated statements of operations is as follows. Prior period amounts have been restated at constant currency to conform to current year presentation.

Three Months Ended June 30, 2026
(in millions, except percentages)
MedSurg
% of Net Sales
Cardiovascular
% of Net Sales
Total
Net sales of reportable segments$1,818 $3,622 $5,440 
Impact of foreign currency fluctuations2 
Total net sales$5,442 
Segment expenses:
Cost of products sold526 28.9 %1,065 29.4 %
Selling, general and administrative expenses567 31.2 %992 27.4 %
Research and development expenses124 6.8 %359 9.9 %
Other segment items(1)
4 0.2 %8 0.2 %
Segment operating income(2)
598 32.9 %1,197 33.1 %1,795 
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments(252)
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), EU MDR implementation costs, and the IEEPA tariff refund
(132)
Amortization expense(233)
Operating income (loss) 1,178 
Other income (expense), net(118)
Income (loss) before income taxes$1,060 
Three Months Ended June 30, 2025
(in millions, except percentages)
MedSurg
% of Net Sales
Cardiovascular
% of Net Sales
Total
Net sales of reportable segments$1,725 $3,365 $5,090 
Impact of foreign currency fluctuations(29)
Total net sales$5,061 
Segment expenses:
Cost of products sold470 27.3 %1,048 31.2 %
Selling, general and administrative expenses521 30.2 %915 27.2 %
Research and development expenses120 7.0 %316 9.4 %
Other segment items(1)
8 0.4 %6 0.2 %
Segment operating income(2)
606 35.1 %1,079 32.1 %1,685 
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments(286)
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs
(355)
Amortization expense(225)
Operating income (loss) 819 
Other income (expense), net122 
Income (loss) before income taxes$941 
Six months ended June 30, 2026
(in millions, except percentages)
MedSurg
% of Net Sales
Cardiovascular
% of Net Sales
Total
Net sales of reportable segments$3,518 $7,124 $10,643 
Impact of foreign currency fluctuations3 
Total net sales$10,646 
Segment expenses:
Cost of products sold1,004 28.5 %2,133 29.9 %
Selling, general and administrative expenses1,124 31.9 %1,952 27.4 %
Research and development expenses251 7.1 %702 9.9 %
Other segment items(1)
9 0.3 %15 0.2 %
Segment operating income(2)
1,130 32.1 %2,323 32.6 %3,453 
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments(451)
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), EU MDR implementation costs, and the IEEPA tariff refund
(258)
Amortization expense(466)
Operating income (loss) 2,279 
Other income (expense), net(57)
Income (loss) before income taxes$2,222 
Six months ended June 30, 2025
(in millions, except percentages)
MedSurg
% of Net Sales
Cardiovascular
% of Net Sales
Total
Net sales of reportable segments$3,335 $6,522 $9,856 
Impact of foreign currency fluctuations(133)
Total net sales$9,724 
Segment expenses:
Cost of products sold906 27.2 %1,975 30.3 %
Selling, general and administrative expenses1,033 31.0 %1,788 27.4 %
Research and development expenses241 7.2 %600 9.2 %
Other segment items(1)
13 0.4 %12 0.2 %
Segment operating income(2)
1,142 34.2 %2,148 32.9 %3,290 
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments(541)
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs
(564)
Amortization expense(444)
Operating income (loss) 1,740 
Other income (expense), net6 
Income (loss) before income taxes$1,746 
(1) Includes royalty expense.
(2) Calculated as Net sales of reportable segments less Segment expenses.
Three Months Ended
June 30,		Six Months Ended
June 30,
Depreciation expense (in millions)
2026202520262025
MedSurg$29 $28 $57 $55 
Cardiovascular93 83 183 162 
Consolidated depreciation expense$122 $111 $240 $217 

As of
Total assets (in millions)
June 30, 2026December 31, 2025
MedSurg$3,804 $3,392 
Cardiovascular8,455 7,999 
Total assets of reportable segments12,259 11,391 
Goodwill18,640 18,282 
Other intangible assets, net6,918 7,019 
All other corporate assets7,398 6,981 
$45,216 $43,673 
As of
Long-lived assets (in millions)
June 30, 2026December 31, 2025
U.S.$1,984 $1,919 
Ireland752 750 
Costa Rica647 637 
Other countries743 730 
Property, plant and equipment, net4,126 4,036 
Goodwill18,640 18,282 
Other intangible assets, net6,918 7,019 
Operating lease right-of-use assets in Other long-term assets
553 465 
$30,237 $29,802