Goodwill and Other Intangible Assets |
9 Months Ended |
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Sep. 30, 2026 | |
| Intangible Asset, Goodwill and Other [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. During the third quarter 2026, various factors indicated it was more likely than not that the carrying value of our Peripheral Vascular reporting unit exceeded its fair value. As a result, we performed an interim impairment assessment of goodwill, indefinite-lived and other long-lived assets of the Peripheral Vascular reporting unit and a charge of $293 was recognized in goodwill and other impairments in the Consolidated Statements of Earnings. The impairment amount represents the excess of the carrying value of the Peripheral Vascular reporting unit over its fair value, which we estimated using an income- based valuation approach. The impairment charge for the Peripheral Vascular reporting unit was primarily driven by a reduction in forecasted cash flows reflecting near-term operational and supply constraints and a longer expected period to achieve anticipated growth and market recovery. Significant inputs to the analysis included assumptions for future revenue growth, operating margin, the effective tax rate applied to future earnings and the rate used to discount the estimated future cash flows to their present value, based on the reporting unit’s estimated weighted average cost of capital. Future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill, including discount and tax rates and future cash flow projections, could result in significantly different estimates of the fair values. A significant reduction in the estimated fair values could result in impairment charges that could materially affect our results of operations. In the first quarter 2026 we changed our organizational structure as further described in Note 1. Following this reorganization we 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. 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.
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