In fiscal 2025, the Company initiated a restructuring program of its Surgery franchise within the MedTech segment to simplify and focus operations by exiting certain non-strategic product lines and optimize select sites across the network. The pre-tax restructuring expense in the fiscal first quarter of 2026 primarily included costs related to product exits. Total project costs of approximately $0.3 billion have been recorded since the restructuring was announced. The estimated costs of the total program are between $0.9 billion - $1.0 billion and is expected to be substantially completed by the end of fiscal year 2026.

In fiscal 2023, the Company initiated a restructuring program of its Orthopaedics franchise within its MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The pre-tax restructuring expense in the fiscal first quarter of 2026 primarily included costs related to market and product exits. The pre-tax restructuring expense in the fiscal first quarter of 2025 primarily included costs related to asset impairments as well as market and product exits. Total project costs of approximately $0.8 billion have been recorded since the restructuring was announced and the program was substantially completed in the fiscal year 2025.


(Pre-tax Dollars in Millions)	Q1 2026	Q1 2025
MedTech Segment Surgery franchise(1)	$55	—
MedTech Segment Orthopaedics franchise(2)	7	55

Total Programs	$62	55

(1)Included $30 million in Restructuring, $20 million in Cost of products sold and $5 million in Other (Income)/Expense on the Consolidated Statement of Earnings in the fiscal first quarter of 2026.

(2)Included $17 million in Restructuring, $8 million in Cost of products sold and $30 million in Other (Income)/Expense on the Consolidated Statement of Earnings in the fiscal first quarter of 2025.