Solventum Corp Goodwill & Intangibles Disclosure
| (Millions) | MedSurg | Dental Solutions | Health Information Systems | Purification and Filtration | All Other | Total | ||||||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | 3,685 | $ | 458 | $ | 873 | $ | 1,519 | $ | — | $ | 6,535 | ||||||||||||||||||||||||||
| Translation impact | (88) | (19) | (2) | (49) | — | (158) | ||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 3,597 | 439 | 871 | 1,470 | — | 6,377 | ||||||||||||||||||||||||||||||||
| Acquisition activity | 441 | — | — | — | — | 441 | ||||||||||||||||||||||||||||||||
| Divestiture activity | — | — | (2) | (1,389) | — | (1,391) | ||||||||||||||||||||||||||||||||
| Translation and other | 208 | 38 | 4 | (81) | 108 | 277 | ||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | 4,246 | $ | 477 | $ | 873 | $ | — | $ | 108 | $ | 5,704 | ||||||||||||||||||||||||||
| December 31, | ||||||||||||||
| (Millions) | 2025 | 2024 | ||||||||||||
Customer related | $ | 2,099 | $ | 2,720 | ||||||||||
Patents and technology | 2,049 | 1,895 | ||||||||||||
Tradenames and other | 637 | 729 | ||||||||||||
| Total gross carrying amount | 4,785 | 5,344 | ||||||||||||
| Accumulated amortization — customer related | (778) | (1,208) | ||||||||||||
| Accumulated amortization — patents and technology | (1,122) | (1,224) | ||||||||||||
| Accumulated amortization — tradenames and other | (293) | (368) | ||||||||||||
| Total accumulated amortization | (2,193) | (2,800) | ||||||||||||
| Total intangible assets — net | $ | 2,592 | $ | 2,544 | ||||||||||
Year ended December 31, | ||||||||||||||||||||
| (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Amortization expense | $ | 312 | $ | 349 | $ | 365 | ||||||||||||||
| (Millions) | 2026 | 2027 | 2028 | 2029 | 2030 | After 2030 | ||||||||||||||||||||||||||||||||
| Amortization expense | $ | 361 | $ | 356 | $ | 351 | $ | 313 | $ | 208 | $ | 1,003 | ||||||||||||||||||||||||||
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.