Segment Reporting

12 Months Ended

Sep. 30, 2019

We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reportable 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 care communications platform that delivers 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, including a portfolio of vision care and respiratory health devices.


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

The following summarizes financial results by reportable segment:



	Year Ended September 30
	2019			2018			2017
Net revenue:
Patient Support Systems	$	1,490.5		$	1,429.5		$	1,423.9
Front Line Care	978.1			960.2			885.3
Surgical Solutions	438.7			458.3			434.5
Total net revenue	$	2,907.3		$	2,848.0		$	2,743.7

Divisional income:
Patient Support Systems	$	292.5		$	281.3		$	249.6
Front Line Care	267.7			253.0			231.8
Surgical Solutions	61.2			53.1			42.5

Other operating costs:
Non-allocated operating costs, administrative costs, and other	276.9			220.4			211.5
Special charges	28.4			77.6			37.4
Operating profit	316.1			289.4			275.0

Interest expense	(89.6		)	(95.0		)	(88.9		)
Loss on extinguishment of debt	(3.3		)	—			—
Investment income and other, net	(14.6		)	2.8			(3.1		)
Income before income taxes	$	208.6		$	197.2		$	183.0

Depreciation and amortization of property, plant, equipment and intangibles:
Patient Support Systems	$	36.2		$	37.4		$	47.0
Front Line Care	101.9			110.7			107.4
Surgical Solutions	28.4			20.8			22.1
Corporate	28.3			27.6			27.1
Total depreciation and amortization of property, plant, equipment and intangibles	$	194.8		$	196.5		$	203.6

Geographic Information

Geographic data for net revenue and long-lived assets were as follows:



	Year Ended September 30
	2019		2018		2017
Net revenue to unaffiliated customers:
United States	$	2,056.8	$	1,956.4	$	1,887.6
Foreign	850.5		891.6		856.1
Total net revenue	$	2,907.3	$	2,848.0	$	2,743.7
Long-lived assets:
United States	$	212.5	$	239.5	$	243.9
Foreign	84.3		88.8		111.5
Total long-lived assets	$	296.8	$	328.3	$	355.4

Net revenue in the above table is attributed to geographic areas based on the location of the customer.