
Note 4.	Business Segment and Geographical Information

The company’s financial performance is reported in four segments. A description of each segment follows.

Life Sciences Solutions: provides an extensive portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease. These products and services are used by customers in pharmaceutical, biotechnology, agricultural, clinical, academic, and government markets.

Analytical Instruments: provides a broad offering of instruments, consumables, software and services that are used for a range of applications in the laboratory, on the production line and in the field. These products and services are used by customers in pharmaceutical, biotechnology, academic, government, environmental and other research and industrial markets, as well as the clinical laboratory.

Specialty Diagnostics: provides a wide range of diagnostic test kits, reagents, culture media, instruments and associated products used to increase the speed and accuracy of diagnoses. These products are used by customers in healthcare, clinical, pharmaceutical, industrial and food safety laboratories.

Laboratory Products and Services: provides virtually everything needed for the laboratory, including a combination of self-manufactured and sourced products for customers in research, academic, government, industrial and healthcare settings. The segment also includes a comprehensive offering of outsourced services used by the pharmaceutical and biotech industries for drug development, clinical trials logistics and commercial drug manufacturing.

The company’s management evaluates segment operating performance based on operating income before certain charges/credits to cost of revenues and selling, general and administrative expenses, principally associated with acquisition accounting; restructuring and other costs/income including costs arising from facility consolidations such as severance and abandoned lease expense and gains and losses from the sale of real estate and product lines as well as from significant litigation-related matters; and amortization of acquisition-related intangible assets. The company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitates comparison of performance for determining compensation.

Business Segment Information



	Three Months Ended
	March 31,			April 1,
(In millions)	2018			2017

Revenues
Life Sciences Solutions	$	1,499		$	1,363
Analytical Instruments	1,257			1,052
Specialty Diagnostics	947			866
Laboratory Products and Services	2,413			1,699
Eliminations	(263		)	(215		)

Consolidated revenues	5,853			4,765

Segment Income (a)
Life Sciences Solutions	517			433
Analytical Instruments	246			192
Specialty Diagnostics	243			233
Laboratory Products and Services	280			216

Subtotal reportable segments (a)	1,286			1,074

Cost of revenues charges	(3		)	(31		)
Selling, general and administrative charges, net	(8		)	(31		)
Restructuring and other costs, net	(45		)	(24		)
Amortization of acquisition-related intangible assets	(444		)	(368		)

Consolidated operating income	786			620
Other expense, net (b)	(152		)	(117		)

Income from continuing operations before income taxes	$	634		$	503

Depreciation
Life Sciences Solutions	$	31		$	33
Analytical Instruments	18			17
Specialty Diagnostics	19			17
Laboratory Products and Services	63			30

Consolidated depreciation	$	131		$	97


(a)	Represents operating income before certain charges to cost of revenues and selling, general and administrative expenses; restructuring and other costs, net; and amortization of acquisition-related intangibles.


(b)	The company does not allocate other expense, net to its segments.

Geographical Information



	Three Months Ended
	March 31,		April 1,
(In millions)	2018		2017

Revenues (c)
United States	$	2,756	$	2,377
China	541		441
Other	2,556		1,947

Consolidated revenues	$	5,853	$	4,765


(c)	Revenues are attributed to countries based on customer location.