SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

We manage our business based on three geographical segments: Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). Our segments provide a broad portfolio of essential healthcare products, including acute and chronic dialysis therapies; sterile IV solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; and surgical hemostat and sealant products.

We use operating income on a segment basis to make resource allocation decisions and assess the ongoing performance of our business segments. Intersegment sales are eliminated in consolidation.

Certain items are maintained at Corporate and are not allocated to a segment. They primarily include the majority of foreign currency hedging activities, corporate headquarters costs, certain R&D costs, certain GBU support costs, stock compensation expense, certain employee benefit plan costs, and certain gains, losses, and other charges (such as business optimization, acquisition and integration costs, intangible asset amortization and asset impairments). Our chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment.

Financial information for our segments is as follows.


	Three months ended September 30,						Nine months ended September 30,
			As Restated				As Restated
(in millions)	2019		2018		2019		2018
Net sales:
Americas	$	1,534	$	1,497	$	4,462	$	4,459
EMEA	730		707		2,179		2,180
APAC	587		557		1,682		1,627
Total net sales	$	2,851	$	2,761	$	8,323	$	8,266
Operating income:
Americas	$	595	$	624	$	1,715	$	1,809
EMEA	162		164		465		475
APAC	138		137		394		383
Total segment operating income	$	895	$	925	$	2,574	$	2,667

The following is a reconciliation of segment operating income to income before income taxes per the condensed consolidated statements of income.


	Three months ended September 30,						Nine months ended September 30,
			As Restated				As Restated
(in millions)	2019		2018		2019		2018
Total segment operating income	$	895	$	925	$	2,574	$	2,667
Corporate and other	(392)		(543)		(1,338)		(1,474)
Total operating income	503		382		1,236		1,193
Net interest expense	13		11		51		34
Other (income) expense, net	9		(1)		(8)		(45)
Income before income taxes	$	481	$	372	$	1,193	$	1,204

Refer to Note 11 for additional information on Net Sales by GBU.