Segment Data

The Company's organizational structure is based upon two principal business segments: BD Medical (“Medical”) and BD Life Sciences (“Life Sciences”). These segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income. Segment operating income represents revenues reduced by product costs and operating expenses. As more fully discussed in Note 10, the Company sold a 50.1% controlling financial interest in its Respiratory Solutions business, a component of the Medical segment, in October 2016. This transaction did not meet the criteria established for reporting discontinued operations and as such, results for the three and nine months ended June 30, 2016 included $199 million and $620 million, respectively, of revenues which did not occur in the current-year periods.

Financial information for the Company’s segments was as follows:



	Three Months Ended June 30,						Nine Months Ended June 30,
(Millions of dollars)	2017			2016			2017			2016
Revenues (A)
Medical	$	2,038		$	2,235		$	5,989		$	6,420
Life Sciences	997			963			2,937			2,832
Total Revenues	$	3,035		$	3,198		$	8,927		$	9,252
Income Before Income Taxes
Medical	$	553		$	571		$	1,638		$	1,549
Life Sciences	199			200			574			604
Total Segment Operating Income	751			771			2,212			2,152
Acquisitions and other restructurings	(81		)	(96		)	(243		)	(321		)
Net interest expense	(165		)	(92		)	(334		)	(279		)
Other unallocated items (B)	(909		)	(160		)	(985		)	(488		)
(Loss) Income Before Income Taxes	$	(404	)	$	422		$	650		$	1,065


(A)	Intersegment revenues are not material.

(B)

Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. The amounts for the three and nine months ended June 30, 2017 also included a $741 million non-cash charge resulting from a modification to the Company's dispensing equipment lease contracts with customers. The amount for the nine months ended June 30, 2017 included a $336 million reversal of certain reserves related to an appellate court decision which, among other things, reversed an unfavorable antitrust judgment in the RTI case. Additional disclosures regarding the legal matter and the lease contract modification are provided in Notes 5 and 16, respectively.

Revenues by geographic areas were as follows:



	Three Months Ended June 30,				Nine Months Ended June 30,
(Millions of dollars)	2017		2016		2017		2016
Revenues
United States	$	1,603	$	1,735	$	4,859	$	5,145
International	1,433		1,463		4,068		4,107
Total Revenues	$	3,035	$	3,198	$	8,927	$	9,252