Segment Data

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Data

19.Segment Data

We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; CMFT products; surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. Our chief operating decision maker (“CODM”) allocates resources to achieve our operating profit goals through three operating segments. These operating segments, which also constitute our reportable segments, are Americas; EMEA; and Asia Pacific.

Our CODM evaluates performance based upon segment operating profit exclusive of operating expenses and income pertaining to certain inventory and manufacturing-related charges, intangible asset amortization, goodwill and intangible asset impairment, restructuring and other cost reduction initiatives, quality remediation, acquisition, integration, divestiture and related, litigation, certain European Union Medical Device Regulation expenses, certain research and development expenses, other charges and corporate functions (collectively referred to as “Corporate items”). Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as stock-based compensation and certain operations, distribution, quality assurance and regulatory expenses. Intercompany transactions have been eliminated from segment operating profit.

Our Americas operating segment is comprised principally of the U.S. and includes other North, Central and South American markets. This segment also includes research, development engineering, medical education, and brand management for our product category headquarter locations. Our EMEA operating segment is comprised principally of Europe and includes the Middle East and African markets. Our Asia Pacific operating segment is comprised principally of Japan, China and Australia and includes other Asian and Pacific markets. The EMEA and Asia Pacific operating segments include the commercial operations as well as regional headquarter expenses to operate in those markets. Since the Americas segment includes additional costs related to centralized product category headquarter expenses, profitability metrics in this operating segment are not comparable to the EMEA and Asia Pacific operating segments.

In 2023, the segment operating profit measures our CODM reviews were revised. Certain support function costs from our operating segments are now included in Corporate items. We have reclassified these support function expenses in the prior years to conform to the current year presentation.

In 2023, our CODM started reviewing accounts receivable and inventories as part of operating segment performance. In prior years no asset information was reviewed. Accordingly, we have included these operating segment assets in our 2023 and 2022 disclosures, rounded to the nearest million as presented to the CODM.

Net sales and other information by segment are as follows (in millions):

	Net Sales						Operating Profit									Depreciation and Amortization						Segment Assets
	Year Ended December 31,						Year Ended December 31,									Year Ended December 31,						As of December 31,
	2023		2022		2021		2023			2022			2021			2023		2022		2021		2023		2022
Americas	$	4,624.1	$	4,295.5	$	4,102.1	$	1,948.9		$	1,819.7		$	1,726.9		$	145.9	$	142.1	$	143.1	$	1,218.0	$	1,172.0
EMEA		1,592.4		1,456.6		1,477.2		524.6			404.1			405.9			67.2		64.4		71.4		679.0		664.0
Asia Pacific		1,177.7		1,187.8		1,248.0		422.6			419.6			418.3			62.3		63.5		66.7		355.0		350.0
Total	$	7,394.2	$	6,939.9	$	6,827.3
Corporate items								(1,056.9	)		(1,127.5	)		(1,145.0	)		114.8		129.6		127.0		1,575.6		1,342.7
Intangible asset amortization								(561.5	)		(526.8	)		(529.5	)		561.5		526.8		529.5		-		-
Goodwill and intangible asset impairment								-			(292.8	)		(16.3	)		-		-		-		-		-
Total							$	1,277.7		$	696.3		$	860.3		$	951.7	$	926.4	$	937.7	$	3,827.6	$	3,528.7

We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions):

	As of December 31,
	2023		2022
United States	$	1,265.1	$	1,101.8
Other countries		795.3		770.7
Property, plant and equipment, net	$	2,060.4	$	1,872.5

U.S. sales were $4,288.8 million, $4,012.4 million, and $3,853.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales in each of those years. Sales are attributable to a country based upon the customer's country of domicile.