BUSINESS OPTIMIZATION CHARGES

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

In recent years, we have undertaken actions to transform our cost structure and enhance operational efficiency. These efforts include restructuring the organization into verticalized segments, optimizing the manufacturing footprint, R&D operations and supply chain network, employing disciplined cost management, and centralizing and streamlining certain support functions. We currently expect to incur additional pre-tax costs, primarily related to the implementation of business optimization programs, of approximately $1 million through the completion of certain initiatives that are currently underway. We continue to pursue cost savings initiatives, including those intended to mitigate a portion of the dis-synergies that arose as a result of the sale of our Kidney Care business, and to the extent further cost savings opportunities are identified, we would incur additional restructuring charges and costs to implement business optimization programs in future periods. For segment reporting, business optimization charges are unallocated expenses.

During the three and nine months ended September 30, 2025 and 2024, we recorded the following charges related to business optimization programs.


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
Restructuring charges	$	37	$	15	$	95	$	36
Costs to implement business optimization programs	1		3		5		13

Total business optimization charges	$	38	$	18	$	100	$	49

Costs to implement business optimization programs for the three and nine months ended September 30, 2025 and 2024, respectively, consisted primarily of external consulting and transition costs, including employee compensation and related costs. These costs were primarily included within cost of sales and SG&A expense.

During the three and nine months ended September 30, 2025 and 2024, we recorded the following restructuring charges.


	Three months ended September 30, 2025
(in millions)	COGS		SG&A		R&D		Total
Employee termination costs	$	8	$	8	$	2	$	18
Contract termination and other costs	8		2		—		10
Asset write offs	9		—		—		9
Total restructuring charges	$	25	$	10	$	2	$	37


	Three months ended September 30, 2024
(in millions)	COGS		SG&A		Total
Employee termination costs	$	2	$	10	$	12
Contract termination and other costs	—		3		3

Total restructuring charges	$	2	$	13	$	15



	Nine months ended September 30, 2025
(in millions)	COGS		SG&A		R&D		Total
Employee termination costs	$	19	$	27	$	3	$	49
Contract termination and other costs	10		4		—		14
Asset write offs	13		19		—		32
Total restructuring charges	$	42	$	50	$	3	$	95



	Nine months ended September 30, 2024
(in millions)	COGS		SG&A		Total
Employee termination costs	$	4	$	25	$	29
Contract termination and other costs	1		6		7

Total restructuring charges	$	5	$	31	$	36

For the three and nine months ended September 30, 2025, $10 million and $41 million of the restructuring charges reflected in the table above, consisting of employee termination costs, were related to initiatives to reduce our cost structure following the sale of our Kidney Care segment. For the three months ended September 30, 2025, $21 million of the restructuring charges reflected in the table above, consisting of $8 million of asset impairments, $8 million of contract termination and other costs, and $5 million of employee termination costs, were related to the exit of a product line at one of our manufacturing facilities. For the nine months ended September 30, 2025, $24 million of the restructuring charges reflected in the table above, consisting of $11 million of asset impairments, $8 million of contract termination and other costs, and $5 million of employee termination costs, were related to the exit of a product line at one of our manufacturing facilities.

For the three and nine months ended September 30, 2024, $7 million and $14 million of the restructuring charges reflected in the table above, consisting of employee termination costs, were related to business optimization initiatives within our Healthcare Systems and Technologies segment. Additionally, for the nine months ended September 30,

2024, $7 million of the restructuring charges reflected in the table above, consisting of employee termination costs, were related to the implementation of our operating model intended to streamline our operations.

The following table summarizes activity in the liability related to our restructuring initiatives.


(in millions)
Liability balance as of December 31, 2024	$	122
Charges	70
Payments	(97)
Reserve adjustments	(7)
Currency translation	5
Liability balance as of September 30, 2025	$	93

Substantially all of our restructuring liabilities as of September 30, 2025 relate to employee termination costs, with the remaining liabilities attributable to contract termination costs. Substantially all of the cash payments for those liabilities are expected to be disbursed by the end of 2026.