Segment Information

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segment Information

14. Segment Information

We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT; surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. Our CODM allocates resources to achieve our operating profit goals through three operating segments. These operating segments, which also constitute our reportable segments, are Americas; EMEA; and Asia Pacific.

Our CODM evaluates performance based upon segment operating profit exclusive of operating expenses and income pertaining to certain inventory and manufacturing-related charges, intangible asset amortization, goodwill and intangible asset impairment, restructuring and other cost reduction initiatives, acquisition, integration, divestiture and related, certain litigation, certain European Union Medical Device Regulation expenses, other charges and corporate functions (collectively referred to as “Corporate items”). Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as stock-based compensation and certain operations, distribution, quality assurance, regulatory expenses, research and development and marketing expenses. Intercompany transactions have been eliminated from segment operating profit. In addition to evaluating performance on a monthly basis, the CODM uses sales and operating profit information to manage the business, including identifying areas of focus and growth, reviewing operating trends and allocating resources. Our CODM reviews accounts receivables and inventory assets (“Segment Assets”) as part of operating segment performance.

Our Americas operating segment is comprised principally of the U.S. and includes other North, Central and South American markets. Our EMEA operating segment is comprised principally of Europe and includes the Middle East and African markets. Our

Asia Pacific operating segment is comprised principally of Japan, China and Australia and includes other Asian and Pacific markets. The Americas, EMEA and Asia Pacific operating segments include the commercial operations as well as regional headquarter expenses to operate in those markets. Our operating segments do not include many centralized, product category expenses such as R&D and global marketing that benefit all regions.

We reclassified certain immaterial prior period expenses to conform to the current period presentation.

Segment operating profit measures by segment are as follows (in millions):

	Americas				EMEA				Asia Pacific				Total
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2025		2024		2025		2024		2025		2024		2025			2024
Net Sales	$	1,253.5	$	1,135.9	$	417.0	$	376.2	$	330.9	$	312.0	$	2,001.4		$	1,824.2
Cost of products sold, excluding intangible asset amortization		270.9		235.0		160.3		132.5		116.4		98.0
Selling, general and administrative		335.3		294.8		132.4		117.6		94.6		87.2
Research and development		0.8		0.8		2.5		2.4		3.3		3.4
Segment profit	$	646.5	$	605.3	$	121.8	$	123.8	$	116.6	$	123.4	$	884.9		$	852.5
Corporate items														357.1			424.8
Intangible asset amortization														176.5			148.2
Other income, net														(3.3	)		(5.1	)
Interest expense, net														75.4			54.3
Earnings before income taxes													$	279.2		$	230.3

	Americas				EMEA				Asia Pacific				Total
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024		2025		2024		2025			2024
Net Sales	$	3,731.6	$	3,521.7	$	1,327.5	$	1,253.4	$	928.7	$	880.3	$	5,987.7		$	5,655.4
Cost of products sold, excluding intangible asset amortization		818.3		720.7		497.9		438.0		318.8		272.8
Selling, general and administrative		987.8		917.1		393.0		378.8		271.0		257.5
Research and development		2.6		2.6		7.8		6.4		10.1		10.0
Segment profit	$	1,923.0	$	1,881.3	$	428.9	$	430.2	$	328.8	$	340.0	$	2,680.7		$	2,651.5
Corporate items														1,248.9			1,320.5
Intangible asset amortization														488.2			434.3
Other income, net														(10.1	)		(7.0	)
Interest expense, net														220.9			156.1
Earnings before income taxes													$	732.8		$	747.6

Other segment information is as follows (in millions):

	Depreciation and Amortization								Segment Assets
	Three Months Ended September 30,				Nine Months Ended September 30,				As of
	2025		2024		2025		2024		September 30, 2025		December 31, 2024
Americas	$	42.0	$	38.3	$	119.3	$	111.8	$	1,339.0	$	1,344.0
EMEA		17.2		16.3		49.6		49.9		727.0		655.0
Asia Pacific		15.4		15.0		45.8		45.5		420.0		311.0
Corporate items		32.5		33.1		106.9		91.2		1,596.0		1,406.0
Intangible asset amortization		176.5		148.2		488.2		434.3		-		-
Total	$	283.6	$	250.9	$	809.8	$	732.7	$	4,082.0	$	3,716.0