Medline Inc.MDLN
Medline Inc. Segments Disclosure
SEGMENT INFORMATION
(1) Includes property, plant, and equipment, net, and operating lease right-of-use assets.
The Company discloses information regarding reportable segments based on the way management organizes the business for assessing performance and making operational decisions and allocating resources. The Company reports its financial results in two reportable segments: Medline Brand and Supply Chain Solutions, described further as follows:
•The Medline Brand segment procures and manufactures products from three product categories - Surgical Solutions, Front Line Care, and Laboratory & Diagnostics. This segment provides its products to domestic and international consumers.
•The Supply Chain Solutions segment procures and distributes a variety of third-party products from national brands and also provides tailored logistics and supply chain optimization services to domestic and international consumers. Supply Chain Solutions is not managed based upon product categories as its focus is on signing new prime vendor relationships and servicing customers by leveraging strong third-party supplier relationships and through its fulfillment and distribution capabilities. As a distributor of products from over 1,300 third-party suppliers, the Company sells products across a large number of product groups to the entire continuum of care and, as a result, it is impracticable to provide segment information at the product group level for Supply Chain Solutions.
The organizational structure also includes Corporate & Other which consists of expenses related to centralized corporate functions, such as finance, information technology, legal, human resources, and internal audit.
The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. For the Medline Brand and Supply Chain Solutions segments, the CODM uses segment adjusted earnings before interest, taxes, depreciation and amortization (“Segment Adjusted EBITDA”) to evaluate the business performance and allocate resources (including employees, financial, or capital resources) to each segment. Segment Adjusted EBITDA essentially represents segment net sales reduced by cost of goods sold and selling, general and administrative expenses and is considered a meaningful measure of the Company’s financial condition and results of operations across periods by removing the impact of items that management believes do not directly reflect the ongoing operating performance. The Segment Adjusted EBITDA is utilized during the budgeting and forecasting process to assess profitability and enable decision making regarding strategic initiatives, capital expenditures, and work force for both segments. The Company’s CODM does not regularly review any asset information by business segment as this information is not utilized to make decisions and allocate resources. As such, the Company does not report asset information by business segment. The Company has not identified any segment expenses that are considered significant and segment expenses are not regularly provided to the CODM. However, the CODM is regularly provided with consolidated expense information for decision making. Other segment items are direct operating expenses and selling, general and administrative expenses, which are the difference between each operating segment’s revenue and Segment Adjusted EBITDA. All the segment data disclosed reflects the way the CODM internally receives information and monitors the segment performance and is consistently presented across all public communications.
The following tables present financial information by segment:
| Year ended | ||||||||||||||||||||
(in millions) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Net sales to external customers: | ||||||||||||||||||||
| Front Line Care | $ | 6,514 | $ | 6,088 | $ | 5,845 | ||||||||||||||
| Surgical Solutions | 6,166 | 5,471 | 4,931 | |||||||||||||||||
| Laboratory and Diagnostics | 1,040 | 956 | 837 | |||||||||||||||||
| Medline Brand | $ | 13,720 | $ | 12,515 | $ | 11,613 | ||||||||||||||
| Supply Chain Solutions | 14,712 | 12,992 | 11,618 | |||||||||||||||||
| Consolidated net sales to external customers | $ | 28,432 | $ | 25,507 | $ | 23,231 | ||||||||||||||
| Segment Adjusted EBITDA: | ||||||||||||||||||||
| Medline Brand | $ | 3,334 | $ | 3,269 | $ | 2,704 | ||||||||||||||
| Supply Chain Solutions | 805 | 647 | 491 | |||||||||||||||||
| Subtotal | 4,139 | 3,916 | 3,195 | |||||||||||||||||
| Corporate & Other | (672) | (555) | (427) | |||||||||||||||||
| Interest expense, net | (812) | (864) | (976) | |||||||||||||||||
| Depreciation and amortization | (1,011) | (977) | (951) | |||||||||||||||||
| Inventory-related adjustments | (83) | (78) | (150) | |||||||||||||||||
| Stock-based compensation expense | (79) | (61) | (78) | |||||||||||||||||
| Litigation gains (charges), net | 33 | (2) | (161) | |||||||||||||||||
Transaction-related costs (1) | (58) | (18) | (142) | |||||||||||||||||
Other non-core charges, net (2) | (209) | (115) | (46) | |||||||||||||||||
| Income before income taxes | $ | 1,248 | $ | 1,246 | $ | 264 | ||||||||||||||
(1) Represents acquisition and integration related costs, IPO related costs, gain related to acquisition of equity investment, gain due to a change in valuation estimate related to an acquisition, and the compensation expense related to the Liquidity MPU Payouts. See Note 17—Stock-Based Compensation for additional information on Liquidity MPU Payouts.
(2) Represents loss on debt extinguishment and other refinancing costs and fees, credit loss expense related to customer bankruptcies, loss on disposals of assets and exits, realized and unrealized foreign currency and investment losses and costs, and other items.
The following tables present information by sales office and geographic area:
| Year ended | ||||||||||||||||||||
(in millions) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Net sales to external customers: | ||||||||||||||||||||
Acute care (1) | $ | 19,506 | $ | 17,491 | $ | 15,906 | ||||||||||||||
Non-Acute care (2) | 6,973 | 6,256 | 5,894 | |||||||||||||||||
| United States | 26,479 | 23,747 | 21,800 | |||||||||||||||||
| International | 1,953 | 1,760 | 1,431 | |||||||||||||||||
| Consolidated net sales to external customers | $ | 28,432 | $ | 25,507 | $ | 23,231 | ||||||||||||||
(1) Acute care represents hospital health systems.
(2) Non-Acute care represents other sites of care including outpatient, post acute, physician’s office, surgery centers, and all other.
(in millions) | December 31, 2025 | December 31, 2024 | |||||||||
Long-lived assets by geographical area (1): | |||||||||||
| United States | $ | 4,433 | $ | 4,329 | |||||||
| International | 777 | 650 | |||||||||
| Consolidated long-lived assets, net | $ | 5,210 | $ | 4,979 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.