v3.26.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 26, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company discloses information regarding reportable segments based on the way management organizes the business for assessing performance, making operational decisions, and allocating resources. The Company reports its financial results in two reportable segments: Medline Brand and Supply Chain Solutions, described further as follows:

•The Medline Brand segment procures and manufactures products from three product categories - Surgical Solutions, Front Line Care, and Laboratory & Diagnostics. This segment provides its products to domestic and international consumers.
•The Supply Chain Solutions segment procures and distributes a variety of third-party products from national brands and also provides tailored logistics and supply chain optimization services to domestic and international consumers. Supply Chain Solutions is not managed based upon product categories as its focus is on signing new prime vendor relationships and servicing customers by leveraging strong third-party supplier relationships and through its fulfillment and distribution capabilities. As a distributor of products from over 1,300 third-party suppliers, the Company sells products across a large number of product groups to the entire continuum of care and, as a result, it is impracticable to provide segment information at the product group level for Supply Chain Solutions.
SEGMENT INFORMATION (Continued)
The organizational structure also includes Corporate & Other which consists of expenses related to centralized corporate functions, such as finance, information technology, legal, human resources, and internal audit. The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. For the Medline Brand and Supply Chain Solutions segments, the CODM uses segment adjusted earnings before interest, taxes, depreciation and amortization (“Segment Adjusted EBITDA”) to evaluate the business performance and allocate resources (including employees, financial, or capital resources) to each segment. Segment Adjusted EBITDA essentially represents segment net sales reduced by cost of goods sold and selling, general and administrative expenses and is considered a meaningful measure of the Company’s financial condition and results of operations across periods by removing the impact of items that management believes do not directly reflect the ongoing operating performance. The Segment Adjusted EBITDA is utilized during the budgeting and forecasting process to assess profitability and enable decision making regarding strategic initiatives, capital expenditures, and work force for both segments.

The Company’s CODM does not regularly review any asset information by business segment as this information is not utilized to make decisions and allocate resources. As such, the Company does not report asset information by business segment. The Company has not identified any segment expenses that are considered significant, and segment expenses are not regularly provided to the CODM. However, the CODM is regularly provided with consolidated expense information for decision making. Other segment items are direct operating expenses and selling, general and administrative expenses, which are the difference between each operating segment’s revenue and Segment Adjusted EBITDA. All the segment data disclosed reflects the way the CODM internally receives information and monitors the segment performance and is consistently presented across all public communications.
SEGMENT INFORMATION (Continued)
The following tables present financial information by segment:

Three months endedNine months ended
(in millions)September 26, 2026September 27, 2025September 26, 2026September 27, 2025
Net sales to external customers:
Front Line Care$1,706 $1,634 $4,976 $4,752 
Surgical Solutions1,659 1,538 4,853 4,494 
Laboratory and Diagnostics272 239 813 751 
Medline Brand3,637 3,411 10,642 9,997 
Supply Chain Solutions4,219 3,704 12,251 10,648 
Consolidated net sales to external customers$7,856 $7,115 $22,893 $20,645 
Segment Adjusted EBITDA:
Medline Brand$943 $821 $2,775 $2,541 
Supply Chain Solutions184 205 575 588 
Total segment adjusted EBITDA1,127 1,026 3,350 3,129 
Corporate & Other(167)(167)(554)(467)
Interest expense, net(118)(213)(373)(646)
Depreciation and amortization(259)(253)(769)(750)
Inventory-related adjustments(122)(2)(154)(38)
Stock-based compensation expense(29)(15)(81)(52)
Litigation gains, net— — — 47 
Transaction-related costs (1)
(30)(12)(94)(35)
Other non-core charges, net (2)
(16)(19)(413)(146)
Income before income taxes$386 $345 $912 $1,042 
(1) Represents acquisition and integration-related costs and IPO and subsequent offerings related costs.
(2)Represents costs related to specified transformation and implementation projects, loss on debt extinguishment and other debt refinancing costs and fees related to specified financing transactions, and other items. The impact of a fire at the distribution center in Tracy, costs attributable to specified remediation activities undertaken in response to FDA observations and warning letters, and recall and discontinuation costs related to Medline Brand beds are included in the 2026 periods. Foreign exchange losses directly attributable to the remeasurement of euro-denominated term loans is included in the 2025 periods.

The following tables present information by sales office and geographic area:

Three months endedNine months ended
(in millions)
September 26, 2026September 27, 2025September 26, 2026September 27, 2025
Net sales to external customers:
Acute care (1)
$5,471 $4,880 $16,003 $14,168 
Non-Acute care (2)
1,867 1,756 5,344 5,061 
United States7,338 6,636 21,347 19,229 
International518 479 1,546 1,416 
Consolidated net sales to external customers$7,856 $7,115 $22,893 $20,645 
(1) Acute care represents hospital health systems.
(2) Non-Acute care represents other sites of care including outpatient, post acute, physician’s office, surgery centers, and all other.
SEGMENT INFORMATION (Continued)
(in millions)September 26, 2026December 31, 2025
Long-lived assets by geographical area (1):
United States$4,364 $4,433 
International838 777 
Consolidated long-lived assets, net$5,202 $5,210 
(1) Includes property, plant, and equipment, net, and operating lease right-of-use assets.