Segment Information

3 Months Ended

Mar. 31, 2025

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. Our Patient Direct segment provides delivery of disposable medical supplies sold directly to patients and home health agencies and is a leading provider of integrated home healthcare equipment and related services in the U.S.

The Chief Operating Decision Maker (CODM) for both of our segments is the President, Chief Executive Officer & Director. The CODM uses segment income to evaluate performance of our segments, determine incentive compensation, and engage in financial and operational planning, including the allocation of labor, financial and capital resources. Segment income excludes acquisition-related charges and intangible amortization, exit and realignment charges, net, and goodwill impairment charges, 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, 2025
		Products & Healthcare Services		Patient Direct		Consolidated
Net revenue	$	1,958,164	$	673,884	$	2,632,048
Cost of goods sold		1,751,393		354,642
Distribution, selling and administrative expenses		203,517		258,835
Other operating expense, net		2,101		266
Segment income	$	1,153	$	60,141		61,294
Acquisition-related charges and intangible amortization						(29,674)
Exit and realignment charges, net						(31,226)
Litigation and related charges (1)						(270)
Operating income					$	124
Capital expenditures	$	17,716	$	46,958	$	64,674

(1) Litigation and related charges includes settlement costs and related fees of legal matters within our Patient Direct Segment, which do not occur in the ordinary course of our business and are inherently unpredictable in timing and amount. These charges are reported within Other operating expense, net in our Statements of Operations for the three months ended March 31, 2025.

	Three Months Ended March 31, 2024
		Products & Healthcare Services		Patient Direct		Consolidated
Net revenue	$	1,974,837	$	637,843	$	2,612,680
Cost of goods sold		1,738,900		338,251
Distribution, selling and administrative expenses		224,081		253,532
Other operating expense, net		370		181
Segment income	$	11,486	$	45,879		57,365
Acquisition-related charges and intangible amortization						(20,313)
Exit and realignment charges, net						(27,356)
Operating income					$	9,696
Capital expenditures	$	8,250	$	41,158	$	49,408

	Three Months Ended
	March 31,
		2025		2024
Share-based compensation:
Products & Healthcare Services	$	4,068	$	4,769
Patient Direct		2,530		1,407
Other (1)		330		690
Consolidated share-based compensation:	$	6,928	$	6,866
Depreciation and amortization:
Products & Healthcare Services	$	10,833	$	11,547
Patient Direct		35,334		36,465
Intangible amortization		13,785		20,289
Other (2)		1,201		5,794
Consolidated depreciation and amortization:	$	61,153	$	74,095

(1) Other share-based compensation expense is captured within exit and realignment charges, net or acquisition-related charges and intangible amortization for the three months ended March 31, 2025 and 2024.

(2) Other depreciation and amortization expense is captured within exit and realignment charges, net for the three months ended March 31, 2025 and 2024.

	March 31, 2025		December 31, 2024
Total assets:
Products & Healthcare Services	$	2,630,037	$	2,429,513
Patient Direct		2,166,951		2,177,261
Segment assets		4,796,988		4,606,774
Cash and cash equivalents		59,436		49,382
Consolidated total assets	$	4,856,424	$	4,656,156

Non-cash LIFO charges to merchandise inventories valued at the lower of cost or market, with the approximate cost determined by the LIFO method for distribution inventories in the U.S. within our Products & Healthcare Services segment, were $8.6 million and $5.4 million for the three months ended March 31, 2025 and 2024. The net book value of patient service equipment sales and dispositions within the Patient Direct segment, were $12 million and $9.6 million for the three months ended March 31, 2025 and 2024.

Excess and obsolete inventory adjustments included in our Products & Healthcare Services segment were $1.6 million and $6.4 million for the three months ended March 31, 2025 and 2024. Excess and obsolete inventory adjustments are not material to the Patient Direct segment for the three months ended March 31, 2025 and 2024.

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,
	2025		2024
Net revenue:
United States	$	2,580,716	$	2,550,610
International		51,332		62,070
Consolidated net revenue	$	2,632,048	$	2,612,680