Segment Reporting

12 Months Ended

Sep. 30, 2011

Segment Reporting

Segment Reporting

NOTE 12. SEGMENT REPORTING

We disclose segment information that is consistent with the way in which management operates and views the business. During the first quarter of fiscal 2011, we changed our segment reporting to reflect changes in our organizational structure and management's view of the business.  We moved our surgical reporting unit from the International and Surgical segment (now referred to as the International segment) to the North America Acute Care segment.  In addition, manufacturing and research and development costs were fully allocated to our three segments.  We have also assigned additional direct functional costs to the segments as well as an allocation of certain corporate functional expenses that can be attributed to the segments.  The prior year segment information included in this Note has been updated to reflect these changes.  Our new operating structure contains the following reporting segments:

· North America Acute Care - sells and rents our hospital patient support and near-patient technologies, as well as our health information technology solutions and surgical accessories, to acute care facilities.

· North America Post-Acute Care - sells and rents a variety of products outside of the hospital setting including long-term acute care, extended care and home care and our respiratory care products in all settings.

· International - sells and rents similar products as our North America businesses in regions outside of the U.S. and Canada.

Our performance under the new operating structure continues to be measured on a divisional income basis before litigation and special charges.  Divisional income generally represents the division's standard gross profit less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and corporate functional expenses.

Corporate expenses, while not considered a segment, are presented separately to aid in the reconciliation of segment information to consolidated financial information.  These costs include corporate expenses that support the entire organization such as administration, finance, legal and human resources.

	Years Ended September 30
	2011			2010			2009
Revenues:
North America Acute Care	$	981.0		$	875.8		$	826.7
North America Post-Acute Care		209.1			205.7			200.8
International		401.6			388.1			359.4
Total revenues	$	1,591.7		$	1,469.6		$	1,386.9
Divisional income:
North America Acute Care	$	227.3		$	177.8		$	118.1
North America Post-Acute Care		43.3			46.0			41.7
International		27.9			29.9			10.3
Corporate expenses		(83.0	)		(70.0	)		(59.5	)
Total divisional income		215.5			183.7			110.6
Impairment of goodwill and other intangibles		-			-			472.8
Litigation charge (credit)		47.3			(21.2	)		-
Special charges		1.4			13.2			20.5
Operating profit (loss)		166.8			191.7			(382.7	)
Gain on sale of non-strategic assets		-			-			10.2
Interest expense		(8.5	)		(8.7	)		(10.4	)
Investment income and other, net		1.4			(0.1	)		4.1
Income before income taxes	$	159.7		$	182.9		$	(378.8	)

Geographic Information

Geographic data for net revenues and long-lived assets (which consist mainly of property and equipment leased to others) were as follows:

	Years Ended September 30
	2011		2010		2009
Net revenues to unaffiliated customers: (a)
United States	$	1,105.0	$	1,027.1	$	985.5
Foreign		486.7		442.5		401.4
Total revenues	$	1,591.7	$	1,469.6	$	1,386.9
Long-lived assets: (b)
United States	$	180.2	$	200.3	$	230.5
Foreign		42.6		43.4		41.9
Total long-lived assets	$	222.8	$	243.7	$	272.4
(a) Net revenues are attributed to geographic areas based on the location of the customer.
(b) Includes property and equipment leased to others.