In February 2025, we announced our intention to undertake a strategic transformation of the organization. In accordance with this strategy, on December 9, 2025, we announced that we had entered into definitive agreements, which were approved at the same time by our Board of Directors, to sell our Acute Care and Interventional Urology (also referred to as "IU") businesses to Intersurgical® Ltd and our OEM business to Montagu and Kohlberg (collectively referred to as the "Strategic Divestitures"). The combined total consideration from the Strategic Divestitures is $2.0 billion in cash, consisting of expected proceeds of $1.5 billion for our OEM business and $530 million for our Acute Care and IU businesses.

On August 3, 2026, we completed the sale of the OEM business. For additional information regarding the sale of the OEM business, see Note 16, Subsequent events. The sale of the Acute Care and IU businesses is currently anticipated to be completed in the fourth quarter of 2026, subject to customary closing conditions, including receipt of regulatory approvals and other closing conditions.

The Strategic Divestitures represent a single plan to exit certain product categories that, in aggregate, met accounting requirements to be classified as discontinued operations and held for sale beginning December 31, 2025 and for the subsequent reporting periods, as the plan represents a strategic shift with a major effect on our financial results. In accordance with GAAP, the financial position and results of operations of both businesses are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. The Strategic Divestitures were historically reported within each of our operating segments.


	Three Months Ended				Six Months Ended
	June 30, 2026		June 29, 2025		June 30, 2026		June 29, 2025

Net revenues	$	318,767	$	338,364	$	602,584	$	624,775
Cost of goods sold	158,968		173,109		305,876		325,512
Gross profit	159,799		165,255		296,708		299,263
Selling, general and administrative expenses	74,368		77,582		140,553		147,510
Research and development expenses	17,339		12,033		31,608		23,142

Restructuring charges, separation costs and impairment charges (1)	7,911		11,472		67,059		14,805
Interest expense	9		5		63		12
Interest income	(82)		(414)		(186)		(843)



Income from discontinued operations before income taxes	60,254		64,577		57,611		114,637

Income tax expense	2,323		10,172		2,996		17,563
Income from discontinued operations	$	57,931	$	54,405	$	54,615	$	97,074

(1) For the three and six months ended June 30, 2026, we incurred separation costs of $29.0 million and $59.2 million, respectively, primarily related to consulting, legal, tax and other professional advisory services associated with the Strategic Divestitures. Additionally, we remeasured the valuation allowance related to the Acute Care and IU businesses component of the Strategic Divestitures, which resulted in a gain of $21.1 million for the three months ended June 30, 2026 and a charge of $7.9 million for the six months ended June 30, 2026. See below for further detail. For the three and six months ended June 29, 2025, we incurred separation costs of $11.6 million and $14.8 million, respectively.

The following table summarizes the carrying amounts of the major classes of assets and liabilities classified as discontinued operations in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025:



	June 30, 2026		December 31, 2025

ASSETS
Cash and cash equivalents	$	47,368	$	51,168
Accounts receivable, net	242,618		225,326
Inventories	365,963		343,183
Prepaid expenses and other current assets	18,567		19,875
Current assets of discontinued operations	674,516		639,552
Property, plant and equipment, net	241,534		214,426
Operating lease assets	20,269		21,213
Goodwill	112,010		112,010
Intangible assets, net	832,571		832,626
Deferred tax assets	27,411		27,928
Other assets	5,220		2,893
Valuation allowance on disposal group classified as held for sale	(754,964)		(747,070)
Assets of discontinued operations	$	1,158,567	$	1,103,578
LIABILITIES
Accounts payable	$	38,806	$	37,478
Accrued expenses	32,351		29,629
Payroll and benefit-related liabilities	43,597		52,248
Other current liabilities	20,740		8,965
Current liabilities of discontinued operations	135,494		128,320
Deferred tax liabilities	31,638		31,801
Non-current operating lease liability	16,645		17,839
Other non-current liabilities	3,691		3,329

Liabilities of discontinued operations	$	187,468	$	181,289

Assets and liabilities classified as held for sale are measured at the lower of carrying value or fair value less costs to sell and as a result, we recognized a valuation allowance for the excess of the carrying value over the fair value less cost to sell for the Acute Care and IU businesses component of the Strategic Divestitures. As of June 30, 2026, we remeasured the valuation allowance and as a result we recognized a $21.1 million decrease to the valuation allowance for the three months ended June 30, 2026. For the six months ended June 30, 2026, we recognized a $7.9 million increase to the valuation allowance. The adjustments to the valuation allowance were recorded within Restructuring charges, separation costs and impairment charges in the summarized results of operations of discontinued operations.

Cash flows attributable to discontinued operations are included in the condensed consolidated statements of cash flows. Significant non-cash operating and investing activities attributable to discontinued operations consisted of the following:


	Six Months Ended
	June 30, 2026		June 29, 2025

Depreciation expense	$	—	$	12,743
Intangible asset amortization expense	—		44,792
Impairment charges	7,894		—
Expenditures for property, plant and equipment	18,144		12,718