Surgery Partners, Inc.SGRY

Surgery Partners, Inc. Segments Disclosure

10-KFiled Mar 2, 20262 min read
Segment Reporting
Segment information is prepared on the same basis that our Chief Executive Officer, who is our Chief Operating Decision Maker ("CODM"), manages our segments, evaluates financial results, and makes key operating decisions. We have one reportable segment: Surgical Facilities.
The Surgical Facilities reportable segment is comprised of two operating segments, which we have aggregated to a single reportable segment in consideration of the aggregation criteria set forth in ASC 280.
The Surgical Facilities reportable segment includes the operation of ASCs, surgical hospitals, anesthesia services, and multi-specialty physician practices, which earns revenues primarily from contracts with patients in which the performance obligations are to provide health care services. The "All other" line item primarily consists of amounts attributable to the Company's corporate general and administrative functions. The Company defines its segments on the basis of the way in which its internally reported financial information is regularly reviewed by the CODM to assess performance and allocate resources.
During the years ended December 31, 2025 and 2024, the operating segment previously defined as "Ancillary services" was included with Surgical Facilities based on changes in the operational management of our multi-specialty physician practices.
The Company’s CODM uses Adjusted EBITDA to assess performance and allocate resources. The CODM considers budget-to-actual and actual versus prior period variances on a periodic basis as a means of assessing performance. The following segment information, including significant segment expenses, is presented in millions:
Year Ended December 31,
202520242023
Surgical Facilities Revenues$3,308.7 $3,114.3 $2,743.3 
Less:
Salaries and benefits
971.0 907.5 793.8 
Supplies
878.9 812.9 745.0 
Professional and medical fees
404.5 357.1 296.8 
Lease expense87.9 89.5 84.9 
Other segment items (1)
340.2 337.3 288.5 
2,682.5 2,504.3 2,209.0 
Adjusted Surgical Facilities EBITDA$626.2 $610.0 $534.3 
Reconciliation:
Add back: Net income attributable to non-controlling interests(176.8)(180.6)(147.2)
Unallocated amounts:
General and administrative expenses118.2 138.7 120.9 
Transaction and integration costs73.9 100.1 61.7 
Other corporate expenses45.4 50.4 52.8 
Depreciation and amortization176.0 152.6 118.1 
Interest expense, net272.6 201.7 193.0 
Income before income taxes$116.9 $147.1 $135.0 
(1)Other segment items includes equity in earnings of unconsolidated affiliates, net income attributable to non-controlling interests and other expenses, net.
Year Ended December 31,
202520242023
Depreciation and amortization:
Surgical Facilities$164.8 $138.9 $110.8 
All other11.2 13.7 7.3 
Total depreciation and amortization expense$176.0 $152.6 $118.1 
December 31, 2025December 31, 2024
Assets:
Surgical Facilities
$7,643.9 $7,466.3 
All other475.8 423.7 
Total assets$8,119.7 $7,890.0 
Year Ended December 31,
202520242023
Cash purchases of property and equipment:
Surgical Facilities
$77.9 $86.6 $88.7 
All other0.8 3.8 0.1 
Total cash purchases of property and equipment$78.7 $90.4 $88.8 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 7, 2025
2023Feb 26, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 10, 2021
2019Mar 13, 2020
2018Mar 15, 2019
2017Mar 16, 2018
2016Mar 10, 2017
2015Mar 11, 2016

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.

Other Available Disclosures

Income TaxesEarnings Per SharePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance