The Company is subject to various legal actions that are ordinary course and incidental to the business, including contract disputes, employment, workers’ compensation, product liability, auto liability, regulatory and other matters. The Company maintains insurance coverage for employment, product liability, workers’ compensation and other litigation matters, subject to policy limits, applicable deductibles and insurer solvency. The Company establishes reserves from time to time based upon periodic assessment of the potential outcomes of pending matters.

Starting in January 2019, the Company was named as a defendant in mass tort litigation in Cook County, Illinois involving claims by approximately 380 plaintiffs who alleged personal injuries associated with the Company’s ethylene oxide activities in Lake County, Illinois. In October 2023, the Company agreed to a settlement with all but five existing plaintiffs, which was finalized in March 2025.

The Company is actively pursuing litigation with its excess insurance carriers related to their obligations to reimburse the Company for substantially all unreimbursed settlement payments and fees incurred in connection with the lawsuits described above. The Company has not recorded a receivable for expected recoveries of the remaining settlement payments and fees from excess insurance carriers as of September 26, 2026.

In May 2023, the Company received a letter from the San Joaquin County District Attorney’s Office, in cooperation with certain other California District Attorneys, notifying the Company of an investigation into alleged violations with respect to the Company’s management and disposal of hazardous materials, hazardous waste, universal waste, and medical waste at its California facilities.

The Company has reached an agreed resolution in this matter, as set forth in a proposed stipulated judgment that was signed by the Company and the District Attorneys on May 29, 2026, and filed with the Superior Court of the State of California for the County of San Joaquin on June 2, 2026, along with a civil complaint setting forth the allegations addressed in the stipulated judgment. The Court approved the stipulated judgment on June 3, 2026. The resolution includes aggregate payments of $900,000, consisting of a civil penalty of $750,000 and reimbursement of certain investigation- and enforcement-related costs of $150,000, of which $525,000 was paid as of September 26, 2026. The settlement also includes certain injunctive relief, including requirements that the Company conduct waste audits at its California facilities and provide status updates for a specified number of years.

Based on current knowledge and the advice of legal counsel, management believes that the reserve as of September 26, 2026 for other pending matters considered probable of gain or loss contingencies is sufficient. In addition, management believes that other currently pending matters are not reasonably likely to result in a material loss, as payment of the amounts claimed is remote, the claims are insignificant, individually and in the aggregate, or the claims are expected to be adequately covered by insurance. The Company is of the opinion that, although the outcome of any such legal proceedings cannot be predicted with any certainty, the ultimate liability, if any, will not have a material adverse effect on the Company’s unaudited condensed consolidated financial statements.

In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the President to impose tariffs. Following that decision, U.S. Customs and Border Protection (“CBP”) established an expedited administrative process through its Consolidated Administration and Processing of Entries (“CAPE”) portal to refund IEEPA duties that had already been paid.

As of September 26, 2026, CBP had accepted approximately $402 million in total refunds the Company has submitted, and actions to recover the remaining expected amounts are ongoing. The Company evaluates recoveries of IEEPA tariffs in accordance with applicable gain contingency guidance and recognizes such recoveries when they are received or realizable. As of September 26, 2026, of the accepted claims, the Company had received approximately $399 million in refunds. Accordingly, the Company recorded a receivable of approximately $3 million within Other current assets related to the remaining accepted refund claims as of September 26, 2026. Interest associated with refunded IEEPA tariffs is recognized in the period in which it is received or realizable. The Company expects to remit a portion of the tariff refunds to customers. As of September 26, 2026, the Company recorded approximately $78 million within Accrued expenses and other current liabilities for the total amount estimated to be remitted to customers in connection with total tariff refund claims expected.

During the three and nine months ended September 26, 2026, the Company recognized approximately $70 million and $402 million, respectively, as a reduction of Cost of goods sold related to tariff refunds received or accepted and approximately $4 million and $18 million, respectively, of interest income in Interest expense, net. During the three and nine months ended September 26, 2026, the Company recognized an $11 million increase and $78 million reduction, respectively, in Net sales related to customer repayments associated with tariff refunds. The increase recognized during the three-month period reflected a reduction in estimated customer repayments. These amounts were recorded entirely within the Medline Brand segment.

On June 11, 2026, a fire destroyed the Company's distribution center in Tracy, California. As of September 26, 2026, the Company has received and recognized $100 million of insurance recoveries related to the fire. The Company may incur additional losses and costs in future periods associated with the fire and its related impacts. The Company is working closely with its insurance carriers as it finalizes and submits appliable claims. While the Company expects to recover these amounts, the ultimate amount and timing of additional recoveries is not guaranteed and will be determined as the claims process progresses. See Note 1—Nature of Business and Significant Accounting Policies for additional information.

Unconditional purchase obligations are defined as agreements to purchase goods or services that are enforceable and legally binding (non-cancelable, or cancelable only in certain circumstances) and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum, or variable price provisions, and the approximate timing of the transaction. In the normal course of business, the Company enters into arrangements with vendors that supply goods or services. These arrangements can include unconditional purchase obligations and commitments. Purchases made under the unconditional purchase obligations were $43 million, $58 million, $137 million and $151 million for the three and nine months ended September 26, 2026, and September 27, 2025, respectively.