Segment Data

The Company's organizational structure in the three months ended December 31, 2017 and 2016 was based upon two principal business segments: BD Medical (“Medical”) and BD Life Sciences (“Life Sciences”). As is further discussed in Note 8, the Company completed its acquisition of Bard on December 29, 2017. Beginning in the second quarter of fiscal year 2018, the Company will report a new segment, BD Interventional ("Interventional"), which will include the majority of Bard's product offerings and certain product offerings previously reported in the Medical segment. Also, certain of Bard's product offerings will be reported under the Company's Medical segment.

The Company's segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Segment disclosures are on a performance basis consistent with internal management reporting. The Company evaluates performance of its business segments and allocates resources to them primarily based upon operating income, which represents revenues reduced by product costs and operating expenses. Beginning with its first quarter fiscal year 2018, the Company changed its management reporting approach so that certain general and administrative costs, which were previously allocated to the segments, are now excluded from the segments' operating expenses. The Medical and Life Sciences segments' operating income in the three months ended December 31, 2016 included allocated general corporate costs of$41 million and $26 million, respectively. No such allocation was made in the three months ended December 31, 2017.

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



	Three Months Ended December 31,
(Millions of dollars)	2017			2016
Revenues (A)
Medical	$	2,035		$	1,964
Life Sciences	1,045			958
Total Revenues	$	3,080		$	2,922
Income Before Income Taxes
Medical	$	705		$	548
Life Sciences	316			198
Total Segment Operating Income	1,021			747
Acquisitions and other restructurings	(354		)	(87		)
Net interest expense	(114		)	(89		)
Other unallocated items (B)	(448		)	121
Income Before Income Taxes	$	105		$	692


(A)	Intersegment revenues are not material.

(B)

Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the three months ended December 31, 2016 also 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 are provided in Note 5.

Revenues by geographic areas were as follows:



	Three Months Ended December 31,
(Millions of dollars)	2017		2016
Revenues
United States	$	1,657	$	1,630
International	1,423		1,292
Total Revenues	$	3,080	$	2,922