Segment Data

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segment Data

18.Segment Data

We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT products; 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 year presentation.

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

	Americas						EMEA						Asia Pacific						Total
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
	2025		2024		2023		2025		2024		2023		2025		2024		2023		2025			2024		2023
Net Sales	$	5,144.6	$	4,794.8	$	4,624.1	$	1,828.8	$	1,691.1	$	1,592.4	$	1,258.1	$	1,192.8	$	1,177.7	$	8,231.5		$	7,678.6	$	7,394.2
Cost of products sold, excluding intangible asset amortization		1,133.5		983.7		967.8		685.4		588.9		541.8		437.8		375.5		362.5
Selling, general and administrative		1,362.1		1,231.4		1,165.3		537.8		498.9		498.8		360.2		342.0		362.5
Research and development		3.4		3.5		3.4		10.5		9.0		6.9		14.1		13.3		15.6
Segment profit	$	2,645.7	$	2,576.3	$	2,487.7	$	595.0	$	594.3	$	545.0	$	446.0	$	462.1	$	437.0	$	3,686.7		$	3,632.7	$	3,469.7
Corporate items																				1,922.7			1,755.1		1,630.5
Intangible asset amortization																				665.9			591.9		561.5
Other (income) expense, net																				(25.5	)		31.1		9.3
Interest expense, net																				292.8			218.0		201.2
Earnings before income taxes																			$	830.8		$	1,036.6	$	1,067.3

Other segment information is as follows (in millions):

	Depreciation and Amortization						Segment Assets
	Year Ended December 31,						As of December 31,
	2025		2024		2023		2025		2024
Americas	$	160.2	$	150.3	$	134.5	$	1,440.0	$	1,344.0
EMEA		66.4		65.8		67.2		737.0		655.0
Asia Pacific		61.2		61.1		62.3		460.0		311.0
Corporate items		140.1		127.2		126.2		1,353.8		1,406.0
Intangible asset amortization		665.9		591.9		561.5		-		-
Total	$	1,093.8	$	996.3	$	951.7	$	3,990.8	$	3,716.0

We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions):

	As of December 31,
	2025		2024
United States	$	1,331.5	$	1,258.3
Other countries		875.6		790.5
Property, plant and equipment, net	$	2,207.1	$	2,048.8

U.S. sales were $4,764.0 million, $4,439.0 million, and $4,288.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales in each of those years. Sales are attributable to a country based upon the customer's country of domicile.