Segment Data

The Company’s organizational structure is based upon two principal business segments: BD Medical (“Medical”) and BD Life Sciences (“Life Sciences”). The Company’s two principal business segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services.

BD Medical

BD Medical produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The primary customers served by BD Medical are hospitals and clinics; physicians’ office practices; consumers and retail pharmacies; governmental and nonprofit public health agencies; pharmaceutical companies; and healthcare workers. BD Medical consists of the following organizational units:



Organizational Unit		Principal Product Lines
Diabetes Care		Syringes, pen needles and other products related to the injection or infusion of insulin and other drugs used in the treatment of diabetes.
Medication and Procedural Solutions		Needles, syringes and intravenous catheters for medication delivery (including safety-engineered and auto-disable devices); prefilled IV flush syringes; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; skin antiseptic products; and surgical and laproscopic instrumentation.
Medication Management Solutions		Intravenous medication safety and infusion therapy delivery systems, including infusion pumps and dedicated disposables; medication compounding workflow systems; and automated medication dispensing; automated supply management systems; medication inventory optimization and tracking systems; and analytics related to all the above products.
Pharmaceutical Systems		Prefillable drug delivery systems provided to pharmaceutical companies for use as containers for injectable pharmaceutical products, which are then placed on the market as drug/device combinations.

BD Life Sciences

BD Life Sciences provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections (“HAIs”) and cancers. In addition, BD Life Sciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. That information is used to aid the discovery and development of new drugs and vaccines, and to improve the diagnosis and management of diseases. The primary customers served by BD Life Sciences are hospitals, laboratories and clinics; blood banks; healthcare workers; public health agencies; physicians’ office practices; academic and government institutions; and pharmaceutical and biotechnology companies. BD Life Sciences consists of the following organizational units:



Organizational Unit		Principal Product Lines
Preanalytical Systems		Integrated systems for specimen collection; safety-engineered blood collection products and systems.
Diagnostic Systems		Automated blood culturing and tuberculosis culturing systems; molecular testing systems for infectious diseases and women’s health; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; microbiology laboratory automation; and plated media.
Biosciences		Fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; molecular indexing and next-generation sequencing sample preparation for genomics research; clinical oncology, immunological (HIV) and transplantation diagnostic/monitoring reagents and analyzers; and cell culture media supplements for biopharmaceutical manufacturing.

Distribution of products is primarily through independent distribution channels, and directly to end-users by BD and independent sales representatives. No customer accounted for 10% or more of revenues in any of the three years presented.

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 years ended September 30, 2016 and 2015 included $822 million and $417 million, respectively, of revenues which did not occur in the current year.



(Millions of dollars)	2017			2016			2015
Revenues (A)
Medical	$	8,105		$	8,654		$	6,460
Life Sciences	3,988			3,829			3,822
Total Revenues	$	12,093		$	12,483		$	10,282
Income Before Income Taxes
Medical	$	2,155		$	2,052		$	1,530
Life Sciences	772			793			839
Total Segment Operating Income	2,927			2,845			2,368
Acquisitions and other restructurings	(354		)	(728		)	(426		)
Net interest expense	(445		)	(367		)	(356		)
Other unallocated items (B)	(1,152		)	(676		)	(847		)
Income Before Income Taxes	$	976		$	1,074		$	739
Segment Assets
Medical	$	18,332		$	19,154		$	20,055
Life Sciences	4,056			3,848			3,932
Total Segment Assets	22,388			23,002			23,987
Corporate and All Other (C)	15,347			2,584			2,491
Total Assets	$	37,734		$	25,586		$	26,478
Capital Expenditures
Medical	$	502		$	482		$	414
Life Sciences	212			200			168
Corporate and All Other	13			12			14
Total Capital Expenditures	$	727		$	693		$	596
Depreciation and Amortization
Medical	$	825		$	857		$	619
Life Sciences	254			254			256
Corporate and All Other	10			3			17
Total Depreciation and Amortization	$	1,088		$	1,114		$	891

(A)Intersegment revenues are not material.

(B)Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. Results in 2017 included a $748 million non-cash charge resulting from a modification to the Company's dispensing equipment lease contracts with customers, as well as 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 17, respectively. Results in 2015 reflected $293 million in recognition of the fair value step-up adjustment recorded relative to CareFusion’s inventory on the acquisition date.

(C)Includes cash and investments and corporate assets.

Geographic Information

The countries in which the Company has local revenue-generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe; Greater Asia (which includes Japan and Asia Pacific); and Other, which is comprised of Latin America, Canada, and EMA (which includes the Commonwealth of Independent States, Middle East and Africa).

Revenues to unaffiliated customers are generally based upon the source of the product shipment. Long-lived assets, which include net property, plant and equipment, are based upon physical location.



(Millions of dollars)	2017		2016		2015
Revenues
United States	$	6,504	$	6,893	$	5,069
Europe	2,588		2,674		2,434
Greater Asia	1,744		1,692		1,545
Other	1,257		1,225		1,234
	$	12,093	$	12,483	$	10,282
Long-Lived Assets
United States	$	13,151	$	14,075	$	15,513
Europe	4,421		3,747		3,908
Greater Asia	578		586		573
Other	584		483		494
Corporate	366		329		332
	$	19,101	$	19,220	$	20,819