Segment Reporting

We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reporting segments:


•	Patient Support Systems – globally provides our med-surg and specialty bed systems and surfaces, safe patient handling equipment and mobility solutions, as well as our clinical workflow solutions that deliver software and information technologies to improve care and deliver actionable insight to caregivers and patients.


•	Front Line Care – globally provides patient monitoring and diagnostic technologies, including a diversified portfolio of physical assessment tools that help diagnose, treat and manage a wide variety of illnesses and diseases, as well as a portfolio of vision care and respiratory care devices.


•	Surgical Solutions – globally provides products that improve surgical safety and efficiency in the operating room including tables, lights, pendants, positioning devices and various other surgical instruments and accessories.

Our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses.

Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment.



	Quarter Ended December 31
	2018			2017
Net revenue:
Patient Support Systems	$	341.0		$	334.4
Front Line Care	233.4			224.6
Surgical Solutions	109.1			110.7
Total net revenue	$	683.5		$	669.7

Divisional income:
Patient Support Systems	$	56.7		$	53.4
Front Line Care	60.1			55.4
Surgical Solutions	11.2			9.7

Other operating costs:
Non-allocated operating costs, administrative costs, and other	49.2			52.9
Special charges	8.0			13.5
Operating profit	70.8			52.1

Interest expense	(21.3		)	(23.1		)
Investment income and other, net	0.1			1.8
Income before income taxes	$	49.6		$	30.8