SUBSEQUENT EVENTS |
9 Months Ended |
|---|---|
Sep. 26, 2026 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Midlothian Lease During the fourth quarter of 2025, the Company entered into a lease agreement for a warehouse facility in Midlothian, Texas to support distribution operations. The lease commenced in October 2026 upon gaining access, with an annual base rent of approximately $9 million. As a result of this lease, the Company recorded right-of-use assets and lease liabilities of approximately $81 million in October 2026. Share Repurchase Program In October 2026, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $1 billion of its outstanding Class A common stock and/or units of Medline Holdings (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company is authorized to repurchase shares of Class A common stock and/or units of Medline Holdings through open market transactions (including pursuant to a plan intended to comply with the requirements of Rule 10b5-1 and/or Rule 10b-18 promulgated under the Exchange Act), block trades, tender offers, accelerated share repurchase programs, privately negotiated transactions or otherwise, or any combination of the foregoing in accordance with applicable securities laws and other restrictions. The Share Repurchase Program does not have an expiration date, does not obligate the Company to acquire any particular amount of Class A common stock and/or units of Medline Holdings, and may be suspended or terminated at any time at the Company's discretion. Prepayment of Long-Term Borrowings In October 2026, the Company’s Board of Directors approved the prepayment of $750 million in aggregate principal amount of the 2033 Refinancing Term Loan Facility using cash on hand. Accordingly, this prepayment, together with the payment of accrued interest, was made on October 22, 2026. In connection with the prepayment, the Company recognized a loss on extinguishment of debt of approximately $21 million in the fourth quarter of 2026. Product Discontinuation and Recall In October 2026, the Company communicated to customers a voluntary field action related to a discontinuation and market exit of Medline Brand beds, including homecare beds, bariatric beds, and long-term-care beds, and associated rails, mattresses, and accessories. These communications established the Company’s commitment to provide customers with repair, replacement or refund for applicable products. The Company currently estimates the related costs to be approximately $50 million to $200 million, which are expected to be incurred in the fourth quarter of 2026 and 2027 and to be excluded from Adjusted EBITDA. The estimated range reflects uncertainty regarding future customer participation, and actual costs and customer credits may differ materially. The Company has evaluated its unaudited condensed consolidated financial statements for subsequent events through November 4, 2026. Based upon this evaluation, the Company did not identify any other subsequent events that would require adjustment or disclosure in the financial statements.
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