Medline Inc.MDLN

Medline Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
GOODWILL AND INTANGIBLE ASSETS
During 2024, the Company reorganized operations to align around its two primary reportable segments, Medline Brand and Supply Chain Solutions. Subsequent to the reorganization, each of the reportable segments also represents a single reporting unit. See Note 20—Segment Information for additional information.

In 2024, total goodwill of $8,070 million was allocated to the new reporting units based on their relative fair value with $6,716 million assigned to Medline Brand and $1,354 million assigned to Supply Chain Solutions. In conjunction with the change in reportable segments, the Company evaluated goodwill for impairment, both before and after the segment change and determined that the goodwill was not impaired.
Changes in the carrying amount of Goodwill were as follows:

(in millions)
Medline BrandSupply Chain SolutionsTotal
Balance, December 31, 2023$7,532
Acquisitions538
Allocation to reporting segments$6,716$1,354$8,070
Currency translation adjustments(4)(1)(5)
Balance, December 31, 2024$6,712$1,353$8,065
Measurement period adjustments4—4
Currency translation adjustments8210
Balance, December 31, 2025$6,724$1,355$8,079

Identifiable intangible assets consist of the following as of:

December 31, 2025December 31, 2024
(in millions)
Weighted Average Remaining Useful LifeGross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Remaining Useful LifeGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Finite-lived intangible assets:
Customer relationships15$10,692 $(2,364)$8,328 16$10,679 $(1,787)$8,892 
Trade names525 (10)15 624 (4)20 
Developed technology152,167 (447)1,720 162,142 (325)1,817 
Total finite-lived intangible assets$12,884 $(2,821)$10,063 $12,845 $(2,116)$10,729 
Indefinite-lived trade names$3,830 — $3,830 $3,830 — $3,830 
Intangible assets, net$16,714 $(2,821)$13,893 $16,675 $(2,116)$14,559 

The carrying amount of intangible assets, net as of December 31, 2025 includes the final fair values for customer relationships, trade names and developed technology assets. See Note 2—Acquisitions for additional information.

The annual impairment testing performed did not indicate any impairment of goodwill or intangible assets for the years ended December 31, 2025, 2024, and 2023.

Estimated amortization expense for the next five years and thereafter is as follows:
(in millions)
Total
2026$704
2027704
2028704
2029702
2030701
Thereafter6,548
$10,063

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

Income TaxesFair ValuePP&ELeasesSegmentsDebtCommitmentsNew Standards