Solventum CorpSOLV
Solventum Corp Segments Disclosure
Business Segments
Operating segments include components of an enterprise where separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker ("CODM") for the purpose of assessing performance and allocating resources. The Company’s CODM is its Chief Executive Officer. The primary profitability measurement used by the CODM to review segment operating results is segment operating income. The CODM uses segment operating income to allocate resources during the strategic planning process and then holds the segments accountable to the resourcing decisions during the annual budgeting process. The CODM does not use asset information by segment to evaluate reportable segments as the CODM does not receive discrete asset information by segment. Beginning in third quarter 2025, as a result of the sale of the Purification and Filtration business, the Company’s operating activities are managed primarily through the following reportable segments: MedSurg, Dental Solutions, and Health Information Systems. There have been no changes to the composition of or to financial information reported within each of these reportable segments. These segments have been identified based on the nature of the products sold and how the Company manages its operations. Transactions among reportable segments are recorded at cost. No operating segments have been aggregated to form reportable segments.
All Other includes the Water Business, which was previously reported within the Purification and Filtration business segment. The Water Business results have been reclassified for comparability within All Other for all historical periods. All Other also includes sales and cost of sales related to our supply agreements with 3M and other supply agreements assumed by the Company at Spin-Off related to legacy 3M businesses, which were historically included in Corporate and Unallocated.
Certain items are maintained at the corporate level and not allocated to the segments ("Corporate and Unallocated"). Corporate and Unallocated primarily includes amortization of acquired intangible assets, restructuring and related charges, timing related benefits or costs associated with capitalized manufacturing variances, charges and recoveries related to certain litigation, transaction and employee retention costs related to the acquisition of Acera, and gains on sale of businesses. In addition, Corporate and Unallocated includes Spin-Off and separation related costs. Spin-Off and separation related costs include any costs incurred as part of our separation from 3M and costs to setup operations as a standalone company, including system implementations, manufacturing relocations, legal entity separations, certain equity awards granted as part of the Spin-Off, profit mark-ups on transition service arrangements with 3M and other one-time costs. Corporate and Unallocated also includes income and costs related to transition service agreements entered into in connection with the sale of the Purification and Filtration business.
Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Business segment operating income is reconciled to total operating income and pre-tax income below.
Consistent accounting policies have been applied on a consolidated basis as well as by all segments for all reporting periods.
Business Segments
We are organized into three reportable business segments that are aligned with the markets we serve.
MedSurg Provider of a broad range of innovative, advanced wound care and surgical solutions that are intended to accelerate healing, prevent complications and lower the total cost of care globally.
Dental Solutions Provider of a comprehensive suite of dental and orthodontic products that span the life of the tooth, which are intended to address clinical needs in prevention, restoration, replacement, and malocclusion correction.
Health Information Systems Provider of software solutions and services that are designed to create more time for clinicians to care for patients, improve accuracy in healthcare reimbursement, and support the shift to value-based care.
Business Segment Information and Disaggregated Net Sales
| Year ended December 31, | ||||||||||||||||||||
Net Sales (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Advanced Wound Care | $ | 1,883 | $ | 1,835 | $ | 1,826 | ||||||||||||||
| Infection Prevention and Surgical Solutions | 2,934 | 2,802 | 2,805 | |||||||||||||||||
| MedSurg | 4,817 | 4,637 | 4,632 | |||||||||||||||||
| Dental Solutions | 1,349 | 1,295 | 1,329 | |||||||||||||||||
| Health Information Systems | 1,360 | 1,306 | 1,285 | |||||||||||||||||
| Total reportable segment net sales | 7,526 | 7,238 | 7,246 | |||||||||||||||||
| Purification and Filtration | 497 | 709 | 689 | |||||||||||||||||
| All Other | 302 | 306 | 262 | |||||||||||||||||
| Total net sales | $ | 8,325 | $ | 8,254 | $ | 8,197 | ||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| Cost of Sales (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| MedSurg | $ | 2,408 | $ | 2,151 | $ | 2,087 | ||||||||||||||
| Dental Solutions | 475 | 425 | 455 | |||||||||||||||||
| Health Information Systems | 341 | 361 | 358 | |||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| Operating Expenses (Millions)* | 2025 | 2024 | 2023 | |||||||||||||||||
| MedSurg | $ | 1,598 | $ | 1,600 | $ | 1,438 | ||||||||||||||
| Dental Solutions | 528 | 519 | 432 | |||||||||||||||||
| Health Information Systems | 523 | 513 | 504 | |||||||||||||||||
| * Operating expenses are comprised of selling, general and administrative expenses and research and development expenses as shown on the consolidated statements of income. | ||||||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
Operating Performance (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| MedSurg | $ | 810 | $ | 887 | $ | 1,107 | ||||||||||||||
| Dental Solutions | 346 | 350 | 442 | |||||||||||||||||
| Health Information Systems | 496 | 431 | 423 | |||||||||||||||||
| Total reportable segment operating income | 1,652 | 1,668 | 1,972 | |||||||||||||||||
| Purification and Filtration | 96 | 74 | 111 | |||||||||||||||||
| All Other | 42 | 30 | 51 | |||||||||||||||||
| Amortization expense | (312) | (349) | (365) | |||||||||||||||||
| Corporate and Unallocated | 702 | (387) | (77) | |||||||||||||||||
| Total operating income | 2,181 | 1,036 | 1,692 | |||||||||||||||||
| Interest expense, net | 347 | 367 | — | |||||||||||||||||
| Loss on extinguishment of debt, net | 82 | — | — | |||||||||||||||||
| Other expense/(income), net | 39 | 64 | 25 | |||||||||||||||||
| Income before income taxes | $ | 1,713 | $ | 605 | $ | 1,667 | ||||||||||||||
The following table represents the depreciation amounts reported within the business segment operating income for our reportable segments. The amounts reflected below include both depreciation on property, plant and equipment and equipment held for use. These amounts are included within Cost of Sales and Operating Expenses disclosed in the segment table above.
| Year ended December 31, | ||||||||||||||||||||
| (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| MedSurg | $ | 131 | $ | 123 | $ | 128 | ||||||||||||||
| Dental Solutions | 23 | 28 | 23 | |||||||||||||||||
| Health Information Systems | 3 | 5 | 4 | |||||||||||||||||
Geographic Information:
Sales are generally reported within the geographic area that originated the invoice to the Company's customer.
| Year ended December 31, | ||||||||||||||||||||
| Net Sales (Millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| United States | $ | 4,668 | $ | 4,559 | $ | 4,471 | ||||||||||||||
| International | 3,657 | 3,695 | 3,726 | |||||||||||||||||
| Worldwide | $ | 8,325 | $ | 8,254 | $ | 8,197 | ||||||||||||||
Long-lived assets include property, plant, and equipment, equipment rented to customers, as well as operating lease right-of-use assets. The following table presents long-lived assets based on the physical location of those assets.
| December 31, | ||||||||||||||
| Long Lived Assets (Millions) | 2025 | 2024 | ||||||||||||
| United States | $ | 933 | $ | 1,046 | ||||||||||
| Germany | 309 | 457 | ||||||||||||
| Other Countries | 366 | 356 | ||||||||||||
| Worldwide | $ | 1,608 | $ | 1,859 | ||||||||||
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.