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.

The Medical segment produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The principal product lines in the Medical segment include syringes, pen needles and IV sets for the injection or infusion of insulin and other drugs used in the treatment of diabetes; 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; surgical and laproscopic instrumentation; intravenous medication safety and infusion therapy delivery systems, including infusion pumps and dedicated disposables; medication compounding workflow systems; automated medication dispensing and supply management systems; prefillable drug delivery systems provided to pharmaceutical companies and sold to end-users as drug/device combinations.

The Life Sciences segment produces products for the safe collection and transport of diagnostics specimens, as well as instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections (“HAIs”) and cancers. The segment also 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. The principal products and services in the Life Sciences segment include integrated systems for specimen collection; safety-engineered blood collection products and 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; plated media; 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.

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.

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.



(Millions of dollars)	2016			2015			2014
Revenues (A)
Medical	$	8,654		$	6,460		$	4,573
Life Sciences	3,829			3,822			3,872
Total Revenues	$	12,483		$	10,282		$	8,446
Income Before Income Taxes
Medical (B)	$	2,052		$	1,530		$	1,291
Life Sciences	793			839			861
Total Segment Operating Income	2,845			2,368			2,152
Acquisitions and other restructurings	(728		)	(426		)	—
Net interest expense	(367		)	(356		)	(89		)
Other unallocated items (C)	(676		)	(847		)	(541		)
Income Before Income Taxes	$	1,074		$	739		$	1,522
Segment Assets
Medical	$	19,154		$	20,055		$	4,668
Life Sciences	3,848			3,932			3,783
Total Segment Assets	23,002			23,987			8,451
Corporate and All Other (D)	2,584			2,491			3,933
Total Assets	$	25,586		$	26,478		$	12,384
Capital Expenditures
Medical	$	482		$	414		$	420
Life Sciences	200			168			155
Corporate and All Other	12			14			16
Total Capital Expenditures	$	693		$	596		$	592
Depreciation and Amortization
Medical	$	857		$	619		$	293
Life Sciences	254			256			251
Corporate and All Other	3			17			18
Total Depreciation and Amortization	$	1,114		$	891		$	562

(A)Intersegment revenues are not material.

(B)Reflected non-cash amortization expense and depreciation expense relating to the identifiable intangible assets and fixed assets acquired in the CareFusion transaction of $492 million and $284 million in 2016 and 2015, respectively. Additional disclosures regarding this acquisition are provided in Note 9.

(C)Primarily comprised of foreign exchange, corporate expenses, and share-based compensation expense. 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.

(D)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 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)	2016		2015		2014
Revenues
United States	$	6,893	$	5,069	$	3,417
Europe	3,049		2,434		2,383
Greater Asia	1,692		1,545		1,437
Other	849		1,234		1,210
	$	12,483	$	10,282	$	8,446
Long-Lived Assets
United States	$	14,075	$	15,513	$	3,126
Europe	3,747		3,908		1,995
Greater Asia	586		573		575
Other	483		494		572
Corporate	329		332		340
	$	19,220	$	20,819	$	6,609