Segment Data (Tables)

9 Months Ended

Jun. 30, 2020

Revenue from External Customers by Geographic Area

Revenues by segment, organizational unit and geographical areas for the three and nine-month periods are detailed below. The Company has no material intersegment revenues.


	Three Months Ended June 30,
(Millions of dollars)	2020										2019
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions (a)	$	412	$	369	$	781	$	521	$	460	$	981
Medication Management Solutions (a)	500		177		677		532		129		661
Diabetes Care	136		123		260		139		136		275
Pharmaceutical Systems	113		291		403		108		286		394
Total segment revenues	$	1,161	$	960	$	2,122	$	1,299	$	1,011	$	2,311

Life Sciences
Integrated Diagnostic Solutions
Preanalytical Systems	$	160	$	152	$	312	$	203	$	204	$	407
Diagnostic Systems	184		218		402		155		212		368
Total Integrated Diagnostic Solutions	344		370		714		358		416		774
Biosciences	93		145		237		117		167		284
Total segment revenues	$	436	$	515	$	951	$	475	$	583	$	1,058

Interventional
Surgery (b)	$	154	$	43	$	197	$	242	$	67	$	309
Peripheral Intervention (b)	174		143		318		228		169		396
Urology and Critical Care (b)	194		74		268		196		80		276
Total segment revenues	$	522	$	260	$	782	$	666	$	316	$	981

Total Company revenues	$	2,119	$	1,735	$	3,855	$	2,440	$	1,910	$	4,350

(a)Prior-period amounts reflect the reclassification of U.S. revenues of $3 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit.

(b)Prior-period amounts reflect the total reclassifications of $33 million of U.S. revenues and $13 million of international revenues associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit.



	Nine Months Ended June 30,
(Millions of dollars)	2020										2019
	United States		International		Total		United States		International		Total
Medical
Medication Delivery Solutions (a)	$	1,450	$	1,183	$	2,634	$	1,521	$	1,344	$	2,865
Medication Management Solutions (a)	1,412		408		1,820		1,538		365		1,903
Diabetes Care	417		389		806		421		397		819
Pharmaceutical Systems	287		815		1,102		269		771		1,040
Total segment revenues	$	3,566	$	2,797	$	6,362	$	3,750	$	2,877	$	6,626

Life Sciences
Integrated Diagnostic Solutions
Preanalytical Systems	$	569	$	541	$	1,110	$	574	$	591	$	1,165
Diagnostic Systems	574		663		1,238		510		628		1,138
Total Integrated Diagnostic Solutions	1,143		1,204		2,347		1,084		1,219		2,303
Biosciences	353		487		840		345		517		862
Total segment revenues	$	1,496	$	1,691	$	3,187	$	1,430	$	1,736	$	3,166

Interventional
Surgery (b)	$	659	$	176	$	835	$	730	$	197	$	927
Peripheral Intervention (b)	641		471		1,112		675		490		1,165
Urology and Critical Care (b)	603		235		837		583		238		821
Total segment revenues	$	1,903	$	881	$	2,784	$	1,989	$	925	$	2,914

Total Company revenues	$	6,964	$	5,369	$	12,333	$	7,168	$	5,538	$	12,706

(a)Prior-period amounts reflect the reclassification of U.S. revenues of $7 million associated with the movement, effective on October 1, 2019, of certain products from the Medication Delivery Solutions unit to the Medication Management Solutions unit.

(b)Prior-period amounts reflect the total reclassifications of $96 million of U.S. revenues and $41 million of international revenues associated with the movement, effective on October 1, 2019, of certain products from the Surgery unit and the Urology and Critical Care unit to the Peripheral Intervention unit.

Financial Information for Company's Segments

Segment income for the three and nine-month periods was as follows:


	Three Months Ended June 30,						Nine Months Ended June 30,
(Millions of dollars)	2020		2019		2020		2019
Income Before Income Taxes
Medical (a) (b)	$	646	$	744	$	1,653	$	2,008
Life Sciences (c)	214		304		860		902
Interventional (d)	100		183		556		623
Total Segment Operating Income	960		1,230		3,069		3,533
Acquisitions and other restructurings	(74)		(90)		(235)		(281)
Net interest expense	(133)		(154)		(400)		(490)
Other unallocated items (e)	(506)		(526)		(1,593)		(1,584)
Total Income Before Income Taxes	$	248	$	460	$	842	$	1,178

(a)The amounts for the three and nine months ended June 30, 2020 included the probable estimate, including changes in estimate, of future costs within the Medication Management Solutions unit associated with remediation efforts for Alaris^TM infusion pumps of $(18) million and $240 million, respectively, which were recorded to Cost of products sold. Based on the course of remediation efforts, it is possible that the estimate of future costs could change over time.

Additionally, amounts for the three and nine months ended June 30, 2020 included costs related to another product matter of $8 million which were recorded in Other income (expense), net.

(b)The amount for the nine-month period in 2019 included $65 million of estimated remediation costs recorded to Other operating (income) expense, net relating to a recall of a product component, which generally pre-dated the Company's acquisition of CareFusion in fiscal year 2015, within the Medication Management Solutions unit's infusion systems platform.

(c)The amount for the nine-month period in 2020 includes a charge of $39 million recorded to Cost of products sold to write down the carrying value of certain intangible assets in the Biosciences unit.

(d)The amounts for the three and nine-month periods in 2019 included a charge recorded to Research and development expense to write down the carrying value of certain intangible assets in the Surgery unit.

(e)Primarily comprised of foreign exchange, certain general and administrative expenses and share-based compensation expense. The amount for the nine-month period in 2019 included a pre-tax charge of $331 million related to certain product liability matters, which is further discussed in Note 5, and also included the pre-tax gain recognized on the Company's sale of its Advanced Bioprocessing business of approximately $336 million, which is further discussed in Note 9.