Segment Data

Beginning in the second quarter of fiscal year 2018, the Company's organizational structure was based upon three principal business segments: BD Medical (“Medical”), BD Life Sciences (“Life Sciences”) and BD Interventional ("Interventional"). 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 Interventional segment includes the majority of Bard’s product offerings and certain product offerings, as further detailed below, which were previously reported in the Medical segment. Certain of Bard's product offerings are included under the Company's Medical segment, specifically within the new Medication Delivery Solutions unit, which was formerly the Medical segment's Medication and Procedural Solutions unit. In addition to the majority of products reported by the former Medication and Procedural Solutions unit, the new Medication Delivery Solutions unit of the Medical segment includes the following Bard products: peripherally inserted central catheters ("PICCs"), midlines, central venous catheters ("CVCs"), acute dialysis, and ultrasonic imaging.

The Interventional segment consists of the following organizational units:



Organizational Unit		Principal Product Lines
Surgery		Bard products include hernia and soft tissue repair; biological grafts; biosurgery; and other surgical products. Products formerly reported in the Medical segment's former Medication and Procedural Solutions unit that are now reported by the Surgery unit include BD ChloraPrep™ surgical, certain infection prevention products, and V. Mueller™.
Peripheral Intervention		Bard products include catheters; ports; chronic dialysis; feeding; vascular grafts; endovascular radiology; biopsy; drug coated balloons; stents; and other interventional products. Drainage products, which were formerly reported in the Medical segment's former Medication and Procedural Solutions unit, are now reported by the Peripheral Intervention unit.
Urology and Critical Care		Bard products include catheters; continence; urological specialties; cancer diagnostics and therapy; and other products.

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 for the three months ended March 31, 2017 included allocated general corporate costs of $40 million and $29 million, respectively. The Medical and Life Sciences segments' operating income for the six months ended March 31, 2017 included allocated general corporate costs of $80 million and $54 million, respectively. No such allocations were made in the three and six months ended March 31, 2018.

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



	Three Months Ended March 31,						Six Months Ended March 31,
(Millions of dollars)	2018			2017			2018			2017
Revenues (a)
Medical (b)	$	2,172		$	1,815		$	4,024		$	3,606
Life Sciences	1,098			982			2,143			1,940
Interventional (b)	952			173			1,135			346
Total Revenues	$	4,222		$	2,969		$	7,302		$	5,892
Income (Loss) Before Income Taxes
Medical (b) (c)	$	588		$	475		$	1,211		$	960
Life Sciences	336			177			652			376
Interventional (b) (c)	(154		)	61			(72		)	126
Total Segment Operating Income	770			714			1,791			1,461
Acquisitions and other restructurings	(104		)	(76		)	(458		)	(163		)
Net interest expense	(181		)	(79		)	(295		)	(169		)
Other unallocated items (d)	(479		)	(197		)	(926		)	(76		)
Income Before Income Taxes	$	6		$	362		$	111		$	1,054


(a)	Intersegment revenues are not material.

(b)

Prior-year amounts have been reclassified to reflect the movement of certain product offerings previously reported in the Medical segment and which are now reported in the Interventional segment, as further discussed above. Revenues associated with these products were $173 million and $346 million in the three and six month-periods ended March 31, 2017, respectively. Segment operating income associated with these products were $61 million and $126 million in the three and six month-periods ended March 31, 2017, respectively.


(c)	The amounts in 2018 included expense of $53 million and $369 million for the Medical and Interventional segments, respectively, related to the recognition of a fair value step-up adjustment of $422 million related to Bard's inventory on the acquisition date.


(d)	Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the six months ended March 31, 2017 also included income resulting from the reversal of certain litigation reserves as further discussed in Note 5.

Revenues by geographic areas were as follows:



	Three Months Ended March 31,				Six Months Ended March 31,
(Millions of dollars)	2018		2017		2018		2017
Revenues
United States	$	2,325	$	1,627	$	3,982	$	3,257
International	1,898		1,342		3,321		2,635
Total Revenues	$	4,222	$	2,969	$	7,302	$	5,892