Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Note 11—Segment Information

We periodically evaluate our application of accounting guidance for reportable segments and disclose information about reportable segments based on the way management organizes the enterprise for making operating decisions and assessing performance. We report our business under two segments: Products & Healthcare Services and Patient Direct. The Products & Healthcare Services segment includes our U.S. distribution division (Medical Distribution), including our outsourced logistics and value-added services businesses, and our Global Products division which manufactures and sources medical surgical products through our production and kitting operations. The Patient Direct segment includes our home healthcare divisions (Byram and Apria).

We evaluate the performance of our segments based on their operating income excluding acquisition-related charges and intangible amortization and exit and realignment charges, net, along with other adjustments, that, either as a result of their nature or size, would not be expected to occur as part of our normal business operations on a regular basis. Segment assets exclude inter-segment account balances as we believe their inclusion would be misleading and not meaningful.

The following tables present financial information by segment:

	Three Months Ended
	March 31,
	2024		2023
Net revenue:
Products & Healthcare Services	$	1,974,837	$	1,915,489
Patient Direct		637,843		607,360
Consolidated net revenue	$	2,612,680	$	2,522,849
Operating income:
Products & Healthcare Services	$	11,486	$	1,820
Patient Direct		45,879		45,849
Acquisition-related charges and intangible amortization		(20,313)		(22,188)
Exit and realignment charges, net		(27,356)		(15,674)
Consolidated operating income	$	9,696	$	9,807
Depreciation and amortization:
Products & Healthcare Services	$	23,366	$	18,566
Patient Direct		50,729		52,360
Consolidated depreciation and amortization	$	74,095	$	70,926
Share-based compensation:
Products & Healthcare Services	$	4,769	$	4,498
Patient Direct		1,407		1,852
Other(1)		690		113
Consolidated share-based compensation	$	6,866	$	6,463
Capital expenditures:
Products & Healthcare Services	$	8,250	$	6,332
Patient Direct		41,158		45,158
Consolidated capital expenditures	$	49,408	$	51,490

(1) Other share-based compensation expense is captured within exit and realignment charges, net or acquisition-related charges for the three months ended March 31, 2024 and 2023.

	March 31, 2024		December 31, 2023
Total assets:
Products & Healthcare Services	$	2,456,341	$	2,359,825
Patient Direct		2,506,786		2,490,460
Segment assets		4,963,127		4,850,285
Cash and cash equivalents		244,866		243,037
Consolidated total assets	$	5,207,993	$	5,093,322

For the three months ended March 31, 2024 and 2023, non-cash adjustments to merchandise inventories valued at the lower of cost or market, with the approximate cost determined by the last-in, first-out (LIFO) method for distribution inventories in the U.S. within our Products & Healthcare Services segment were $5.4 million and $4.9

million. The net book value of patient service equipment dispositions were $9.6 million and $9.0 million for the three months ended March 31, 2024 and 2023, within the Patient Direct segment.

The following table presents net revenue by geographic area, which were attributed based on the location from which we ship products or provide services:

	Three Months Ended
	March 31,
	2024		2023
Net revenue:
United States	$	2,550,610	$	2,452,936
International		62,070		69,913
Consolidated net revenue	$	2,612,680	$	2,522,849