Segment Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment Information

15. 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 Chairman, 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.

In the three-month period ended March 31, 2026, the responsibilities of certain senior leaders who report to the CODM and the related operating profit information these leaders present to the CODM has changed. The changes were primarily: 1) results related to our Foot and Ankle business in EMEA and Asia Pacific are now included in the results of the Americas, and 2) certain product category expenses, such as centralized R&D and global marketing, are included in the results of the Americas. Prior period reportable segment financial information has been recast to conform to the current period presentation.

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 and quality assurance. 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. Starting in 2026, our CODM no longer reviews segment asset information.

Our Americas operating segment is comprised principally of the U.S. and includes other North, Central and South American markets. Our Americas operating segment also includes the results of our Foot and Ankle business in EMEA and Asia Pacific and certain product category expenses, such as centralized R&D and global marketing. Our EMEA operating segment is comprised principally of the commercial operations in Europe and includes the Middle East and African markets. Our Asia Pacific operating segment is comprised principally of the commercial operations in Japan, China and Australia and includes other Asian and Pacific markets. Since the Americas includes additional costs related to many centralized global product category expenses, profitability metrics in this operating segment are not comparable to the EMEA and Asia Pacific operating segments.

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

	Americas				EMEA				Asia Pacific				Total
	Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,
	2026		2025		2026		2025		2026		2025		2026		2025
Net Sales	$	1,324.5	$	1,206.9	$	489.9	$	441.7	$	272.3	$	260.5	$	2,086.7	$	1,909.1
Cost of products sold, excluding intangible asset amortization		297.8		267.6		186.4		165.8		88.0		83.3
Selling, general and administrative		425.6		359.6		149.5		123.3		88.0		85.1
Research and development		71.9		71.1		1.7		2.1		3.3		3.3
Segment profit	$	529.3	$	508.5	$	152.2	$	150.5	$	93.0	$	88.8	$	774.5	$	747.8
Corporate items														239.3		304.5
Intangible asset amortization														162.1		151.0
Other income, net														3.0		(2.9	)
Interest expense, net														68.8		66.2
Earnings before income taxes													$	301.3	$	229.0

Depreciation and amortization included in segment profit is as follows (in millions):

	Three Months Ended March 31,
	2026		2025
Americas	$	44.9	$	40.7
EMEA		16.5		15.6
Asia Pacific		15.3		15.2
Corporate items		31.2		31.9
Intangible asset amortization		162.1		151.0
Total	$	270.0	$	254.4