Note 6 – Segment Data

The Company’s organizational structure is based upon its three principal business segments: BD Medical (“Medical”), BD Diagnostics (“Diagnostics”) and BD Biosciences (“Biosciences”). 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. Financial information for the Company’s segments was as follows:


	Three Months Ended June 30,						Nine Months Ended June 30,
(millions of dollars)	2014			2013			2014			2013
Revenues (A)
Medical	$	1,201		$	1,140		$	3,381		$	3,186
Diagnostics		679			655			2,005			1,966
Biosciences		277			257			858			801

Total Revenues	$	2,157		$	2,053		$	6,244		$	5,953

Segment Operating Income
Medical	$	356	(B)	$	334		$	968	(B)	$	913
Diagnostics		155			159			448	(C)		473
Biosciences		66			58			205	(D)		195

Total Segment Operating Income		578			551			1,621			1,581
Unallocated Items (E)		(155	)		(172	)(F)		(476	)(G)		(476	)(F)

Income from Continuing Operations Before Income Taxes	$	423		$	379		$	1,145		$	1,105

(A)	Intersegment revenues are not material.

(B)	Includes a $9 million charge associated with the decision to terminate a research and development program; the charge relates to program asset write-offs and obligations.

(C)	Includes an $11 million charge that resulted from the early termination of a European distributor agreement.

(D)	Includes a $20 million charge primarily resulting from the discontinuance of an instrument product development program. The charge is largely attributable to capitalized product software, but also includes a lesser amount attributable to fixed assets.

(E)	Includes primarily interest, net; foreign exchange; corporate expenses; and share-based compensation expense.

(F)	Includes the $22 million charge associated with the litigation settlement related to indirect purchaser antitrust class action cases as disclosed in Note 5.

(G)	Includes an $8 million gain resulting from the Company’s receipt of cash proceeds from the sale of a company in which it held a small equity ownership interest.


	Three Months Ended June 30,				Nine Months Ended June 30,
(millions of dollars)	2014		2013		2014		2013
Revenues by Organizational Units BD Medical
Medical Surgical Systems	$	590	$	561	$	1,720	$	1,635
Diabetes Care		258		250		773		725
Pharmaceutical Systems		353		330		888		826

Total		1,201		1,140		3,381		3,186


BD Diagnostics
Preanalytical Systems		364		345		1,054		1,010
Diagnostic Systems		315		310		951		956

Total		679		655		2,005		1,966


BD Biosciences		277		257		858		801


Total Revenues	$	2,157	$	2,053	$	6,244	$	5,953

Revenues by geographic areas were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
(millions of dollars)	2014		2013		2014		2013
Total Revenues
United States	$	871	$	848	$	2,546	$	2,501
International		1,286		1,205		3,698		3,452

Total Revenues	$	2,157	$	2,053	$	6,244	$	5,953