XML 49 R21.htm IDEA: XBRL DOCUMENT v3.6.0.2
Segment and Geographic Data
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment and Geographic Data
SEGMENT AND GEOGRAPHIC DATA
We segregate our operations into three reportable business segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products. The MedSurg segment includes surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment, intensive care disposable products and reprocessed and remanufactured medical devices and other related products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems and other related products.
The Corporate and Other category shown in the table below includes corporate and administration, central initiatives and share-based compensation, which includes compensation related to both employee and director stock option, restricted stock unit and performance stock unit grants.
Segment Results
 
 
 
 
2016
2015
2014
Orthopaedics
$
4,422

$
4,223

$
4,153

MedSurg
4,894

3,895

3,781

Neurotechnology & Spine
2,009

1,828

1,741

Net sales
$
11,325

$
9,946

$
9,675

Orthopaedics
$
317

$
290

$
319

MedSurg
249

117

113

Neurotechnology & Spine
140

132

134

Segment depreciation and amortization
$
706

$
539

$
566

Corporate and Other
46

51

20

Total depreciation and amortization
$
752

$
590

$
586

Orthopaedics
$
1,597

$
1,487

$
1,410

MedSurg
1,085

822

850

Neurotechnology & Spine
557

474

476

Segment operating income
$
3,239

$
2,783

$
2,736

Items not allocated to segments:
 
 
 
Corporate and Other
$
(352
)
$
(302
)
$
(322
)
Acquisition & integration-related charges
(131
)
(35
)
(102
)
Amortization of intangible assets
(319
)
(210
)
(188
)
Restructuring related charges
(125
)
(132
)
(117
)
Rejuvenate and related charges
(158
)
(296
)
(761
)
Regulatory and legal matters
12

53


Consolidated operating income
$
2,166

$
1,861

$
1,246


Segment Assets and Capital Spending
Assets:
2016
2015
2014
Orthopaedics
$
7,048

$
6,149

$
8,357

MedSurg
8,553

5,341

5,557

Neurotechnology & Spine
4,129

3,904

3,684

Total segment assets
$
19,730

$
15,394

$
17,598

Corporate and Other
705

829

(340
)
Total assets
$
20,435

$
16,223

$
17,258

Capital spending:
 
 
 
Orthopaedics
$
153

$
95

$
80

MedSurg
129

89

77

Neurotechnology & Spine
25

28

20

Total segment capital spending
$
307

$
212

$
177

Corporate and Other
183

58

56

Total capital spending
$
490

$
270

$
233


Our reportable segments are business units that offer different products and services and are managed separately because each business requires different manufacturing, technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to our Consolidated Financial Statements.
We measure the financial results of our reportable segments using an internal performance measure that excludes acquisition and integration-related charges, restructuring related charges, reserves for certain product recall matters, reserves for certain legal and regulatory matters and a donation to an educational institution. Identifiable assets are those assets used exclusively in the operations of each business segment or allocated when used jointly. Corporate assets are principally cash and cash equivalents, marketable securities and property, plant and equipment.
The countries in which we have local revenue generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe, Middle East, Africa; Asia Pacific; and other foreign countries, which include Canada and countries in the Latin American region. Net sales are attributable to a geographic area based upon the customer’s country of domicile.
Geographic Information
 
Net Sales
 
Net Property, Plant and Equipment
 
2016
2015
2014
 
2016
2015
United States
$
8,247

$
7,116

$
6,558

 
$
941

$
626

Europe, Middle East, Africa
1,442

1,267

1,371

 
493

432

Asia Pacific
1,314

1,251

1,368

 
105

116

Other foreign countries
322

312

378

 
30

25

Total
$
11,325

$
9,946

$
9,675

 
$
1,569

$
1,199