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Business Segments
 6 Months Ended
Jun. 30, 2026
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 drinking water business, which was previously reported within the Purification and Filtration business segment. The drinking 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.
Certain items are maintained at the corporate level and not allocated to the segments ("Corporate and Unallocated"). Corporate and Unallocated primarily includes amortization of acquired intangible assets, restructuring and related charges, timing related benefits or costs associated with capitalized manufacturing variances, charges and recoveries related to certain litigation, transaction-related costs for acquisitions and divestitures, and gains on sale of businesses. In addition, Corporate and Unallocated includes 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 setup operations as a standalone company, including system implementations, manufacturing relocations, certain equity awards granted as part of the Spin-Off, profit mark-ups on transition service arrangements with 3M and other one-time costs. Corporate and Unallocated also includes income and costs related to transition service agreements entered into in connection with the sale of the Purification and Filtration business.
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 June 30,Six months ended June 30,
Net Sales (Millions)
2026202520262025
Advanced Wound Care$537 $467 $1,034 $915 
Infection Prevention and Surgical Solutions836 750 1,573 1,460 
MedSurg1,372 1,218 2,607 2,375 
Dental Solutions396 338 750 667 
Health Information Systems354 339 696 667 
Total reportable segment net sales2,122 1,895 4,053 3,709 
Purification and Filtration— 189 — 369 
All Other87 77 163 153 
Total net sales$2,209 $2,161 $4,216 $4,231 
Three months ended June 30,Six months ended June 30,
Cost of Sales (Millions)2026202520262025
MedSurg$595 $603 $1,217 $1,151 
Dental Solutions124 113 243 231 
Health Information Systems82 91 162 179 
Three months ended June 30,Six months ended June 30,
Operating Expenses (Millions)*2026202520262025
MedSurg$423 $404 $874 $808 
Dental Solutions141 129 289 260 
Health Information Systems126 128 258 260 
* 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 June 30,Six months ended June 30,
Operating Performance (Millions)
2026202520262025
MedSurg$355 $210 $516 $416 
Dental Solutions131 96 218 175 
Health Information Systems145 120 276 229 
Total reportable segment operating income631 426 1,009 820 
Purification and Filtration— 43 — 70 
All Other19 8 30 19 
Amortization expense(90)(78)(181)(159)
Corporate and Unallocated(378)(185)(597)(384)
Total operating income181 214 262 367 
Interest expense, net64 103 125 207 
Other expense/(income), net9 8 13 19 
Income before income taxes$108 $103 $123 $141