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Business Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The Company’s CODM is its Chief Executive Officer. The primary profitability measurement used by the CODM to review segment operating results is segment operating income. The CODM uses segment operating income to allocate resources during the strategic planning process and then holds the segments accountable to the resourcing decisions during the annual budgeting process. The CODM does not use asset information by segment to evaluate reportable segments as the CODM does not receive discrete asset information by segment. Beginning in third quarter 2025, as a result of the sale of the Purification and Filtration business, the Company’s operating activities are managed primarily through the following reportable segments: MedSurg, Dental Solutions, and Health Information Systems. There have been no changes to the composition of or to financial information reported within each of these reportable segments. These segments have been identified based on the nature of the products sold and how the Company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.
All Other includes the Water Business, which was previously reported within the Purification and Filtration business segment. The Water Business results have been reclassified for comparability within All Other for all historical periods. All Other also includes sales and cost of sales related to our supply agreements with 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included in Corporate and Unallocated.
Corporate and Unallocated primarily includes restructuring and related charges, benefits or costs related to capitalized manufacturing variances, and Spin-Off and separation related costs. Spin-Off and separation related costs include any costs incurred as part of our separation from 3M and costs to set up operations as a standalone company, including system implementations, manufacturing relocation, legal entity separation, certain equity awards granted as part of the Spin-Off, profit mark-ups on transition service arrangements with 3M and other one-time costs.
Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income and pre-tax income below.
Consistent accounting policies have been applied on a consolidated basis as well as by all segments for all reporting periods.
Business Segment Information and Disaggregated Net Sales
Three months ended September 30,Nine months ended September 30,
Net Sales (Millions)
2025202420252024
Advanced Wound Care$485 $468 $1,400 $1,369 
Infection Prevention and Surgical Solutions722 713 2,182 2,093 
MedSurg1,206 1,182 3,581 3,463 
Dental Solutions340 313 1,006 979 
Health Information Systems345 326 1,012 971 
Total reportable segment net sales1,891 1,821 5,600 5,413 
Purification and Filtration128 180 497 532 
All Other77 81 230 234 
Total net sales$2,096 $2,082 $6,327 $6,179 
Three months ended September 30,Nine months ended September 30,
Cost of Sales (Millions)2025202420252024
MedSurg$599 $539 $1,750 $1,593 
Dental Solutions118 109 350 320 
Health Information Systems80 92 259 269 
Three months ended September 30,Nine months ended September 30,
Operating Expenses (Millions)*2025202420252024
MedSurg$405 $399 $1,213 $1,192 
Dental Solutions134 130 394 382 
Health Information Systems131 129 391 385 
* Operating expenses are comprised of selling, general and administrative expenses and research and development expenses as shown on the condensed consolidated statements of income.
Three months ended September 30,Nine months ended September 30,
Operating Performance (Millions)
2025202420252024
MedSurg$203 $243 $619 $678 
Dental Solutions87 74 262 277 
Health Information Systems134 105 363 317 
Total reportable segment operating income424 422 1,244 1,272 
Purification and Filtration26 19 96 62 
All Other12 5 31 24 
Amortization expense(77)(88)(235)(261)
Corporate and Unallocated1,305 (83)921 (197)
Total operating income1,690 275 2,057 900 
Interest expense, net89 107 296 260 
Loss on extinguishment of debt, net82 — 82 — 
Other expense/(income), net5 1 24 48 
Income before income taxes$1,514 $167 $1,655 $592