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SEGMENT REPORTING
12 Months Ended
Sep. 30, 2012
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
NOTE 11. SEGMENT REPORTING

We disclose segment information that is consistent with the way in which management operates and views the business. During the fourth quarter of fiscal 2012, we changed our segment reporting to reflect changes in our organizational structure and management's view of the business. As part of these changes, we combined the North America Acute Care and components of the North America Post-Acute Care segments into a new North America segment. At the same time we created the Surgical and Respiratory Care segment which contains the surgical reporting unit (formerly part of the North America Acute Care segment), the respiratory care reporting unit (formerly part of the North America Post-Acute Care segment) and the recently acquired Aspen Surgical business. There were no changes to the International segment. The prior year segment information included below has been updated to reflect these changes.

Our new operating structure contains the following reporting segments:

 
·
North America - sells and rents our patient support and near-patient technologies and services, as well as our health information technology solutions, in the U.S. and Canada.

 
·
Surgical and Respiratory Care - sells and rents our surgical and respiratory care products in all settings.

 
·
International - sells and rents similar products as our North America segment 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 impairment on goodwill and other intangibles, 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

 
2012


2011


2010

Revenues:









North America

$ 998.2

$ 1,057.2

$ 958.2
Surgical and Respiratory Care


153.2


132.9


123.3
International


482.9


401.6


388.1
Total revenues

$ 1,634.3

$ 1,591.7

$ 1,469.6
 











Divisional income:












North America

$ 198.9

$ 230.6

$ 185.7
Surgical and Respiratory Care


38.1


40.0


38.1
International


18.6


27.9


29.9
Corporate expenses


(64.2 )

(83.0 )

(70.0 )
Total divisional income


191.4


215.5


183.7
 











Impairment of goodwill and other intangibles


8.0


-


-
Litigation (credit) charge


(3.6 )

47.3


(21.2 )
Special charges


18.2


1.4


13.2
Operating profit


168.8


166.8


191.7
 











Interest expense


(6.5 )

(8.5 )

(8.7 )
Investment income and other, net


1.2


1.4


(0.1 )
Income before income taxes

$ 163.5

$ 159.7

$ 182.9

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

 
2012


2011


2010

Net revenues to unaffiliated customers: (a)









United States

$ 1,077.8

$ 1,105.0

$ 1,027.1
Foreign


556.5


486.7


442.5
Total revenues

$ 1,634.3

$ 1,591.7

$ 1,469.6
Long-lived assets: (b)












United States

$ 172.5

$ 180.2

$ 200.3
Foreign


77.6


42.6


43.4
Total long-lived assets

$ 250.1

$ 222.8

$ 243.7

(a)
Net revenues are attributed to geographic areas based on the location of the customer.
(b)
Includes property and equipment leased to others.