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Segment Information | 12 Months Ended
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Dec. 31, 2019
Operating Segments [Abstract] |
Segment information | Segment information The segment information disclosed in these Consolidated Financial Statements reflects historical results consistent with the identifiable reporting segments of Alcon and financial information that the Chief Operating Decision Maker ("CODM") reviews to evaluate segmental performance and allocate resources among the segments. The CODM is the Executive Committee of Alcon. The businesses of Alcon are divided operationally on a worldwide basis into two identified reporting segments, Surgical and Vision Care. As indicated below, certain income and expenses are not allocated to segments. Reporting segments are presented in a manner consistent with the internal reporting to the CODM. The reporting segments are managed separately due to their distinct needs and activities for research, development, manufacturing, distribution, and commercial execution. The Executive Committee of Alcon is responsible for allocating resources and assessing the performance of the reporting segments. In Surgical, Alcon researches, develops, manufactures, distributes and sells ophthalmic products for cataract surgery, vitreoretinal surgery, refractive laser surgery and glaucoma surgery. The surgical portfolio also includes implantables, consumables and surgical equipment required for these procedures and supports the end-to-end procedure needs of the ophthalmic surgeon. In Vision Care, Alcon researches, develops, manufactures, distributes and sells daily disposable, reusable, and color-enhancing contact lenses and a comprehensive portfolio of ocular health products, including products for dry eye, contact lens care and ocular allergies, as well as ocular vitamins and redness relievers. Alcon also provides services, training, education and technical support for both the Surgical and Vision Care businesses. The basis of preparation described in Note 2, and the selected accounting policies mentioned in Note 3 are used in the reporting of segment results. The Executive Committee of Alcon evaluates segmental performance and allocates resources among the segments primarily based on net sales and segment contribution. Net identifiable assets are not assigned to the segments in the internal reporting to the CODM, and are not considered in evaluating the performance of the business segments by the Executive Committee of Alcon. Segment contribution excludes amortization and impairment costs for acquired product rights or other intangibles, general and administrative expenses for corporate activities, and certain other income and expense items. General & administration (corporate) includes the costs of the Alcon corporate headquarters, including all related corporate function costs. For the historical comparative period only, the related corporate function costs were allocated to Alcon from its Former Parent. Other expense, net of other income, includes other items of income and expense such as spin readiness and separation costs, transformation program costs, restructuring costs and legal settlements that are not attributable to a specific segment. Segmentation - Consolidated income statements
| Surgical |  | Vision Care |  | Company
($ millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Net sales to third parties | 4,174 |  |  | 3,999 |  |  | 3,188 |  |  | 3,150 |  |  | 7,362 |  |  | 7,149 |
Sales to former parent | — |  |  | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 4 |
Other revenues | — |  |  | — |  |  | 146 |  |  | — |  |  | 146 |  |  | — |
Net sales and other revenues | 4,174 |  |  | 4,001 |  |  | 3,334 |  |  | 3,152 |  |  | 7,508 |  |  | 7,153 |
Segment contribution(1) | 923 |  |  | 813 |  |  | 563 |  |  | 594 |  |  | 1,486 |  |  | 1,407 |
Amortization of intangible assets |  |  |  |  |  |  |  |  | (1,084 | ) |  | (1,019 | )
Impairment charges on intangible assets |  |  |  |  |  |  |  |  | — |  |  | (378 | )
General & administration (corporate) |  |  |  |  |  |  |  |  | (243 | ) |  | (206 | )
Other (expense)/income, net |  |  |  |  |  |  |  |  | (346 | ) |  | (52 | )
Operating (loss) |  |  |  |  |  |  |  |  | (187 | ) |  | (248 | )
Interest expense |  |  |  |  |  |  |  |  | (113 | ) |  | (24 | )
Other financial income & expense |  |  |  |  |  |  |  |  | (32 | ) |  | (28 | )
(Loss) before taxes |  |  |  |  |  |  |  |  | (332 | ) |  | (300 | )
Included in segment contribution are:
| Surgical |  | Vision Care |  | Not allocated |  | Total
($ millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Depreciation of property, plant & equipment | (112 | ) |  | (114 | ) |  | (155 | ) |  | (125 | ) |  | — |  |  | — |  |  | (267 | ) |  | (239 | )
Depreciation of right-of-use assets | (42 | ) |  | — |  |  | (24 | ) |  | — |  |  | — |  |  | — |  |  | (66 | ) |  | — |
Impairment charges on property, plant & equipment, net | (3 | ) |  | (1 | ) |  | (5 | ) |  | (1 | ) |  | — |  |  | — |  |  | (8 | ) |  | (2 | )
Equity-based compensation(2) | (55 | ) |  | (45 | ) |  | (44 | ) |  | (36 | ) |  | (15 | ) |  | (12 | ) |  | (114 | ) |  | (93 | )
(1) | The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets.
(2) | Equity-based compensation not allocated to segments in 2018 reflects an estimate of the allocation for corporate functions in the historical period based on 2019 actual percentages.
| Surgical |  | Vision Care |  | Company
($ millions) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Net sales to third parties | 3,999 |  |  | 3,733 |  |  | 3,150 |  |  | 3,052 |  |  | 7,149 |  |  | 6,785 |
Sales to former parent | 2 |  |  | 3 |  |  | 2 |  |  | 1 |  |  | 4 |  |  | 4 |
Other revenues | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
Net sales and other revenues | 4,001 |  |  | 3,736 |  |  | 3,152 |  |  | 3,056 |  |  | 7,153 |  |  | 6,792 |
Segment contribution(1) | 813 |  |  | 691 |  |  | 594 |  |  | 625 |  |  | 1,407 |  |  | 1,316 |
Amortization of intangible assets |  |  |  |  |  |  |  |  | (1,019 | ) |  | (1,033 | )
Impairment charges on intangible assets |  |  |  |  |  |  |  |  | (378 | ) |  | (57 | )
General & administration (corporate) |  |  |  |  |  |  |  |  | (206 | ) |  | (202 | )
Other (expense)/income, net |  |  |  |  |  |  |  |  | (52 | ) |  | (101 | )
Operating (loss) |  |  |  |  |  |  |  |  | (248 | ) |  | (77 | )
Interest expense |  |  |  |  |  |  |  |  | (24 | ) |  | (27 | )
Other financial income and expense |  |  |  |  |  |  |  |  | (28 | ) |  | (23 | )
(Loss) before taxes |  |  |  |  |  |  |  |  | (300 | ) |  | (127 | )
Included in segment contribution are:
| Surgical |  | Vision Care |  | Not allocated |  | Company
($ millions) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Depreciation of property, plant & equipment | (114 | ) |  | (106 | ) |  | (125 | ) |  | (109 | ) |  | — |  |  | — |  |  | (239 | ) |  | (215 | )
Impairment charges on property, plant & equipment, net | (1 | ) |  | — |  |  | (1 | ) |  | — |  |  | — |  |  | — |  |  | (2 | ) |  | — |
Equity-based compensation(2) | (45 | ) |  | (34 | ) |  | (36 | ) |  | (27 | ) |  | (12 | ) |  | (10 | ) |  | (93 | ) |  | (71 | )
(1) | The segment contribution corresponds to Net sales and Other revenues less Cost of net sales, Cost of other revenues, Selling, general & administration and Research & development attributable to segments, excluding amortization and impairments on intangible assets.
(2) | Equity-based compensation not allocated to segments in 2018 and 2017 reflects an estimate of the allocation for corporate functions in the historical periods based on 2019 actual percentages.
Segmentation - Additional balance sheet disclosure
| Surgical |  | Vision Care |  | Not allocated(1) |  | Total
($ millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Goodwill | 4,544 |  |  | 4,538 |  |  | 4,361 |  |  | 4,361 |  |  | — |  |  | — |  |  | 8,905 |  |  | 8,899 |
Intangible assets other than goodwill | 5,770 |  |  | 6,053 |  |  | 1,481 |  |  | 1,646 |  |  | 2,980 |  |  | 2,980 |  |  | 10,231 |  |  | 10,679 |
(1) Alcon brand name. Net sales by segment
($ millions) | 2019 |  |  | 2018 |  |  | 2017 |
Surgical |  |  |  |  |  |  |  |
Implantables | 1,210 |  |  | 1,136 |  |  | 1,045 |
Consumables | 2,304 |  |  | 2,227 |  |  | 2,104 |
Equipment/other | 660 |  |  | 636 |  |  | 584 |
Total Surgical | 4,174 |  |  | 3,999 |  |  | 3,733 |
Vision Care |  |  |  |  |
Contact lenses | 1,969 |  |  | 1,928 |  |  | 1,836 |
Ocular health | 1,219 |  |  | 1,222 |  |  | 1,216 |
Total Vision Care | 3,188 |  |  | 3,150 |  |  | 3,052 |
Net sales to third parties | 7,362 |  |  | 7,149 |  |  | 6,785 |
Geographical information The following table shows the United States, International and countries that accounted for more than 5% of at least one of the respective Alcon totals, for net sales for the years ended December 31, 2019, 2018 and 2017, and for selected non-current assets at December 31, 2019, and 2018:
| Net sales(1) |  | Total of selected non-current assets(2)
($ millions unless indicated otherwise) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018
Country |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | 3,055 |  |  | 41 | % |  | 2,942 |  |  | 41 | % |  | 2,800 |  |  | 41 | % |  | 10,559 |  |  | 47 | % |  | 10,056 |  |  | 45 | %
International | 4,307 |  |  | 59 | % |  | 4,207 |  |  | 59 | % |  | 3,985 |  |  | 59 | % |  | 12,014 |  |  | 53 | % |  | 12,401 |  |  | 55 | %
thereof: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Switzerland (country of domicile) | 56 |  |  | 1 | % |  | 57 |  |  | 1 | % |  | 57 |  |  | 1 | % |  | 10,486 |  |  | 46 | % |  | 11,166 |  |  | 50 | %
Japan | 656 |  |  | 9 | % |  | 593 |  |  | 8 | % |  | 561 |  |  | 8 | % |  | 66 |  |  | — | % |  | 12 |  |  | — | %
China | 377 |  |  | 5 | % |  | 341 |  |  | 5 | % |  | 279 |  |  | 4 | % |  | 18 |  |  | — | % |  | 2 |  |  | — | %
Other | 3,218 |  |  | 44 | % |  | 3,216 |  |  | 45 | % |  | 3,088 |  |  | 46 | % |  | 1,444 |  |  | 6 | % |  | 1,221 |  |  | 5 | %
Company total | 7,362 |  |  | 100 | % |  | 7,149 |  |  | 100 | % |  | 6,785 |  |  | 100 | % |  | 22,573 |  |  | 100 | % |  | 22,457 |  |  | 100 | %
(1) | Net sales from operations by location of third-party customer.
(2) | Includes property, plant & equipment, right-of-use assets, goodwill and other intangible assets.
No customer accounted for 10% or more of Alcon's net sales.

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