Assets Held for Sale

3 Months Ended

Mar. 31, 2025

ASSETS HELD FOR SALE

During the fourth quarter 2024 management committed to a plan

to sell certain assets associated with the Spinal Implants

business (disposal group) and such assets were classified as

held for sale beginning November 2024. As a result we recorded

a valuation allowance of $362 to record the disposal group at its

fair value less cost to sell. In January 2025 we announced a

definitive agreement to sell our United States Spinal Implants

business to Viscogliosi Brothers, LLC. The definitive agreement

includes a binding offer to sell our Spinal Implants business in

certain international markets at later dates, subject to required

consultations with employees and employee representatives.

In the three months 2025 we recognized a charge of $33 to

record the disposal group at its fair value less cost to sell within

goodwill and other impairments in our Consolidated Statements

of Earnings resulting in a valuation allowance of $395 at

March 31, 2025. The fair value of the disposal group was

measured using a discounted cash flow analysis based upon the

selling price and unobservable inputs, such as market conditions

and the rate used to discount the estimated future cash flows to

their present value based on factors including the disposal

group’s cost of equity and market yield rates, which are Level 3

inputs. Future changes in the judgments, assumptions and

estimates that are used in our fair value estimate, including

discount rates and cash flow projections, could result in a

significantly different estimate of fair value. A change in the

amount or timing of consideration received could increase the fair

value by up to $57 or decrease the fair value by up to $245.

In April 2025 we completed the sale of our United States Spinal

Implants business as discussed in Note 12.

The assets associated with the Spinal Implants disposal group

are reported in our Orthopaedics segment. The assets and

liabilities held for sale are classified within prepaid expenses and

other current assets and accrued expenses and other liabilities in

our Consolidated Balance Sheets and included the following at

March 31, 2025 and December 31, 2024:


	March 31	December 31
	2025	2024
Accounts receivable, net	$56	$62
Total inventories	195	183
Prepaid expenses and other current assets	27	10
Property, plant and equipment, net	53	51
Other intangibles, net	323	326
Noncurrent deferred income tax assets	9	9
Other noncurrent assets	179	171
Valuation allowance	(395)	(362)
Total assets held for sale	$447	$450

Accounts payable	$41	$28
Accrued compensation	20	26
Accrued expenses and other liabilities	24	29
Other noncurrent liabilities	27	21
Total liabilities held for sale	$112	$104