18.

Segment Data

We design, manufacture and market orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products. Due to the Biomet merger, we changed our senior management organizational structure which has resulted in a change to our operating segments. We now allocate resources to achieve our operating profit goals through seven operating segments. Our operating segments are comprised of both geographic and product category business units. The geographic operating segments are the Americas, which is comprised principally of the U.S. and includes other North, Central and South American markets; EMEA, which is comprised principally of Europe and includes the Middle East and African markets; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. The product category operating segments are Americas Spine, Bone Healing, CMF and Dental. The geographic operating segments include results from all of our product categories except those in the product category operating segments. The Bone Healing, CMF and Dental product category operating segments reflect those respective product category results from all regions, whereas the Americas Spine operating segment only includes spine product results from the Americas.

As it relates to the geographic operating segments, management evaluates performance based upon segment operating profit exclusive of operating expenses pertaining to inventory step-up and certain other inventory and manufacturing related charges, “Certain claims,” goodwill impairment, intangible asset amortization, “Special items,” and global operations and corporate functions. Global operations and corporate functions include research, development engineering, medical education, brand management, corporate legal, finance and human resource functions, manufacturing operations and logistics and share-based payment expense. As it relates to each product category operating segment, research, development engineering, medical education, brand management and other various costs that are specific to the product category operating segment’s operations are reflected in its operating profit results. Due to these additional costs included in the product category operating segments, profitability metrics between the geographic operating segments and product category operating segments are not comparable. Intercompany transactions have been eliminated from segment operating profit.

Management reviews accounts receivable, inventory, and property, plant and equipment assets by reportable segment exclusive of manufacturing operations and logistics and corporate assets.

These seven operating segments are the basis for our reportable segment information provided below. The four product category operating segments are individually insignificant to our consolidated results and therefore do not constitute a reporting segment either individually or combined. For presentation purposes, these product category operating segments have been aggregated. Prior period reportable segment financial information has been restated to conform to the current period.

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


	Americas		EMEA		Asia Pacific		Product Category Operating Segments		Global Operations and Corporate Functions			Total
As of and for the Year Ended December 31, 2015
Net sales	$	3,109.4	$	1,302.9	$	881.6	$	703.9	$	–		$	5,997.8
Depreciation and amortization		110.0		61.1		37.9		21.0		482.4			712.4
Segment operating profit		1,647.0		445.3		421.9		167.9		(689.1	)		1,993.0
Inventory step-up and certain other inventory and manufacturing related charges													(348.8	)
Intangible asset amortization													(337.4	)
Certain claims													(7.7	)
Special items
Biomet merger related													(619.1	)
Other special items													(212.7	)
Operating profit													467.3
Total assets		1,525.0		1,382.2		642.4		788.3		22,881.6			27,219.5
Additions to instruments		1.6		0.2		4.7		22.8		237.1			266.4
Additions to other property, plant and equipment		21.7		3.4		9.0		4.6		129.0			167.7

As of and for the Year Ended December 31, 2014
Net sales	$	2,320.2	$	1,189.1	$	789.2	$	374.8	$	–		$	4,673.3
Depreciation and amortization		70.5		46.0		30.2		7.5		221.6			375.8
Segment operating profit		1,215.4		435.6		371.0		76.5		(569.8	)		1,528.7
Inventory step-up and certain other inventory and manufacturing related charges													(36.3	)
Intangible asset amortization													(92.5	)
Certain claims													(21.5	)
Special items
Biomet merger related													(61.9	)
Other special items													(279.2	)
Operating profit													1,037.3
Total assets		1,012.0		924.0		380.3		295.1		7,046.6			9,658.0
Additions to instruments		0.2		0.1		6.0		16.3		174.8			197.4
Additions to other property, plant and equipment		8.6		2.1		9.1		2.6		122.5			144.9

As of and for the Year Ended December 31, 2013
Net sales	$	2,347.6	$	1,134.0	$	771.9	$	369.9	$	–		$	4,623.4
Depreciation and amortization		62.6		48.2		30.0		7.7		210.0			358.5
Segment operating profit		1,293.5		401.2		335.6		79.9		(617.1	)		1,493.1
Inventory step-up and certain other inventory and manufacturing related charges													(88.7	)
Intangible asset amortization													(78.5	)
Certain claims													(47.0	)
Special items
Biomet merger related													–
Other special items													(210.3	)
Operating profit													1,068.6
Total assets		947.9		974.5		375.9		322.9		6,973.8			9,595.0
Additions to instruments		0.2		0.3		6.5		14.9		171.0			192.9
Additions to other property, plant and equipment		8.7		1.2		7.6		4.6		77.9			100.0

For segment reporting purposes, deployed instruments are included in the measurement of reportable segment assets while undeployed instruments at manufacturing operations and logistics are included in global operations and corporate functions. The majority of instruments are purchased by manufacturing operations and logistics and are deployed to the reportable segments as needed for the business. Therefore, the reportable segment assets include deployed instruments even though that reportable segment may not report the instrument addition.

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


As of December 31,	2015		2014		2013
United States	$	1,188.6	$	794.4	$	737.6
Switzerland		200.9		198.7		211.5
Other countries		673.1		292.2		280.4

Property, plant and equipment, net	$	2,062.6	$	1,285.3	$	1,229.5

U.S. sales were $3,447.2 million, $2,397.9 million and $2,418.2 million for the years ended December 31, 2015, 2014 and 2013, 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.

Net sales by product category are as follows (in millions):


For the Years Ended December 31,	2015		2014		2013
Knees	$	2,276.8	$	1,895.2	$	1,862.2
Hips		1,537.2		1,326.4		1,330.5
S.E.T.		1,214.9		863.2		847.2
Dental		335.7		242.8		239.3
Spine & CMF		404.4		207.2		202.3
Other		228.8		138.5		141.9

Total		5,997.8		4,673.3		4,623.4