SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

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,
(in millions)	2020		2019		2020		2019
Net sales:
Americas	$	1,549	$	1,534	$	4,455	$	4,462
EMEA	777		730		2,262		2,179
APAC	646		587		1,775		1,682
Total net sales	$	2,972	$	2,851	$	8,492	$	8,323
Operating income:
Americas	$	577	$	595	$	1,610	$	1,715
EMEA	160		162		480		465
APAC	161		138		432		394
Total segment operating income	$	898	$	895	$	2,522	$	2,574

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,
(in millions)	2020		2019		2020		2019
Total segment operating income	$	898	$	895	$	2,522	$	2,574
Corporate and other	(428)		(392)		(1,312)		(1,338)
Total operating income	470		503		1,210		1,236
Net interest expense	39		13		96		51
Other (income) expense, net	16		9		32		(8)
Income before income taxes	$	415	$	481	$	1,082	$	1,193

Refer to Note 9 for additional information on Net Sales by GBU.