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Segment Information
 12 Months Ended
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.